Published On: Mon, Sep 14th, 2015

Why Automating Your Money Is The Best Thing You Can Do For Your Wallet

A big chunk of your day is spent making decisions (over 50 of them alone are money-related)

Should you cut down on expenses? Do you have enough left to host a henna party or for tequila Thursdays?  What about investing? Bill payments? WIll I be able to balance work-life, AND keep track of it all while keeping my cool?

Sometimes, it feels like you spend hours a week worrying over your finances, and it’s always at the back of your mind. (Nobody’s got time for that.) And when faced with information overload, we all tend to respond in the same way: by doing nothing.

Should you begin automating?

Today’s software engineers continuously work to flawlessly automate your online financial transactions, and improve the user interface and experience of financial web and mobile applications to solve all your money woes: Pay bills, save for retirement, and more.

Does this mean that it’s it time for you to automate your money?

Yes.

When you automate your money flow, it’ll automatically go where it needs to go, requiring little management–whether it’s electricity bills, investments savings, or guilt-free shopping.

You’ll master your money flow, become more organized, and develop awesome financial habits without a lot of effort. You only need to make that smart decision of automating your finances–once, and it keeps paying off without further worrying.

For example, you’re set on saving 10% every month. All you have to do is automatically deduct 10% from every paycheck, and watch your savings grow!

You won’t have to worry about depriving yourself enjoying a few personal expenses.

Routine transactions become a thing of the past, and you can finally let your mind dwell on some other important stuff–like where you’ll spend that extra money you found for non-necessity spendings, a vacation maybe?

What Payments You Should Automate

Begin by thinking of your Fixed Costs. These are fixed expenses like online streaming on Netflix, insurance, and cable–all which can be automated by your credit card.

While some bills, like utility are automatically credited to your checking account. You can also have an email copy of your credit card bill emailed to you as a quick monthly digest.

Once you’ve reviewed it, the bill will be paid from your checking account. Here are payments you should automate:

  • Set up a regular deposit into your savings account.
  • Have tax automatically deducted from your paycheck.
  • Settle bills through the auto-pay option.

Auto-Investing in the Stock Market

Automating your investments is also the way to go. Both the new and savvy investor will benefit from the market returns of index funds.

Using a “set it and forget it” investment technique, here’s what you should do:

  • Open a retirement/brokerage account.
  • Select your index funds
  • Rest easy, knowing that your investment will continue to grow over time.
  • Check to make sure your portfolio is balanced every once in awhile

The Perks of Automation

Once you’ve achieved the optimum personal finance set up, your system will work passively for you, continuing to do the right thing for YEARS.

This leaves you more time to dream, play, try new things, brainstorm moneymaking ideas, and work on your job skills.

How comfortable are you automating your payments? What do you automate and not automate? Why? Let us know what you think!

Source: Girls Just Wanna Have Funds

Sandy Smith
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Sandy Smith

Chief Troublemaker at Yes, I Am Cheap
Sandy Smith is the founder of the peer acclaimed personal finance blog, Yes, I Am Cheap where she shares winning strategies for reducing debt. You can find Sandy all around the internet taking about getting you out of debt. She is also the founder of Colorful Money!
Sandy Smith
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About the Author

- Sandy Smith is the founder of the peer acclaimed personal finance blog, Yes, I Am Cheap where she shares winning strategies for reducing debt. You can find Sandy all around the internet taking about getting you out of debt. She is also the founder of Colorful Money!

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Did you know?

African Americans are significantly more likely to have some type of debt (94%) compared with the general population (82%). Credit card debt, student loan debt, and personal loans are all significantly higher in the African American community.

Source: Prudential’s 2013 "African American Financial Experience" study