Sat Oct 11 2025, by Tyler Gardner

Automate These Four Things Before Your Paycheck Hits Your Account

I'm Tyler, a former financial advisor and portfolio manager. Now I create financial content for free so you don't have to pay for it.

1. Contribute to Your 401k

Start by allocating 8% of your paycheck directly to your 401k if you're a man, and 13% if you're a woman. Women, on average, spend 11.5 years out of the workforce compared to 16 months for men. They also make less on average and live longer, so funding the account with more is crucial.

2. High-Yield Savings Account

Put 2% in a high-yield savings account or invest it in a money market fund in your brokerage account like Fidelity's SPAXX. This provides liquidity and stability, allowing your money to work for you. Right now, both options yield about 4%.

3. Invest in a Brokerage Account

Another 2% should be invested in a brokerage account. If you don't have one, open one today through Vanguard, Fidelity, or Schwab. While retirement accounts are great, they’re not the end-all-be-all, and you can't access most of them without penalties until you're 59 and a half.

4. Health Savings Account

Finally, allocate 2% to a health savings account, if you’re eligible. These accounts are available for people with high-deductible health plans, contributions are tax-deductible, and your money can grow tax-free. Withdrawals are also 100% tax-free for qualifying medical expenses.

Conclusion

Yes, that’s almost 20% of your paycheck, but you'll now have a 100% better chance of being one step closer to where you need to be. If you found any of this helpful, sign up for my free weekly newsletter by clicking the link in my bio. Each week, I’ll send you over another money playbook that actually works.

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