Save Time and Money — Automate Your Finances

Follow these easy tips and never worry about your finances again

In today’s hectic world, it pays to do everything you can to save time and money. You can do just that by automating your finances. Many people aren’t aware of how much time and money they can save by switching to automation. Follow these tips for automating your finances and begin saving big today.

Automate Your Finances

At first glance, automating your finances is a bit scary. It sounds a little like a juggling act and you don’t want to drop the ball. Let’s put this fear to rest with these tips.

Tip #1 — Set Up Accounts

When you automate your finances, you need to set up three accounts — one for bills, one for daily use, and one for savings. Your ‘daily use’ account is for expenses like gas and groceries. The ‘bills’ account is the account you use to automatically pay your regularly occurring bills. The ‘savings’ account is where you transfer extra money to save.

Tip #2 — Set Up Direct Deposit

From your place of work, sign up to have your paycheck deposited directly into your ‘bills’ account.

Tip #3 — Automate Transfers

In your bills account, set up an automatic transfer to your savings account the day after your paycheck deposits. It doesn’t have to be a large amount of money — just what you can afford. If needed, start with just $10 per paycheck. You’ll be surprised how painless this is and how quickly the money begins to accumulate.

Next, set up an automatic transfer to your ‘daily use’ account so you have enough money for your gas and groceries. By setting up these automatic transfers, you have enough money for your regular bills, daily usage money, and money in your savings account.

Tip #4 — Automate Bills

Once you have the system set up, you can then automate your monthly expenses. You can automate just about every regularly occurring bill you have — utility, cell phone, internet/cable service, and mortgage.

Tip #5 — Track Payments

When first setting up financial automation, it is wise to track your payments. This is your safety net just in case you set the dates wrong or someone along the line dropped the ball. Even after your finances are set on autopilot, for security measures, you should always sit down once per month and track your payments. Doing this is quick and easy and doesn’t take near as long as paying bills manually.

Tip #6 — Set Up Alerts

At most banks, you can sign up for alerts. These alerts let you know the company received your payment. You can also set an alert when your checking account or savings account balance reaches a certain amount.

This is a great safeguard. Just in case you spent too much money on an unexpected expense, the alert will let you know you don’t have enough money in the account to make the automated payments.

Tip #7 — Use Finance Software

If the idea of automating your personal finances still sounds complicated, try using personal finance software. There are several options for you to choose that can simplify the entire process.

So why bother doing all this? Simple. By automating your finances, you eliminate the possibility of late payments, and you don’t waste time manually paying bills. Once you have the system set up, you’re home free and everything happens automatically.