When you automate your finances, it can make it easier for you to stay on top of your finances and maintain control of your budget and money.

It only takes a few hours to set up a money management system that will automate your finances so you can get on with other important activities in your life.

Here are some ways to do this.

AUTOMATE BILL PAY

Your online banking system will let you set up automatic monthly bill payments. You choose a monthly withdrawal date, and the bank will issue the payment from your account to the biller. A shift to automated, digital bill payments helps you to prevent late payments and to keep your financial records organized since you can easily track them in your online account.

Automated, online bill payments can also be more secure since you are not relying on physical checks being mailed. Some lenders may even offer incentives such as discounts or lower rates if you set up automated payment with them.

USE DIRECT DEPOSIT FOR YOUR PAYCHECKS

Setting up direct deposit is as simple as having your employer deposit the amount of your paycheck directly into your checking account. Most direct deposit services will also allow you to break your paycheck up into multiple deposits to different accounts. You receive your funds instantly on pay day, which helps you to pay your bills on time, and you can avoid a trip to the bank to deposit a check.

SET UP PAYROLL DEDUCTIONS

Automatic payroll deductions work since you will be paying yourself first. You can then choose to deposit a certain percentage of your paycheck into your checking, savings, 401K, and other accounts automatically, so you will not be tempted to spend that extra money.

Make a list of all your financial responsibilities such as: checking, savings, 401K, credit cards, IRA, student loans, utilities, cell phones, car payments and any other monthly bills.

Gather your login information for all the different sites for these bills, login in and link them. This includes linking your 401K account to your paycheck, savings account to your checking account, linking IRA (if you have one) to your checking account, linking your bills to your credit card or checking account and your credit cards to your checking account.

AUTOMATE YOUR SAVINGS

By automating your savings, you will no longer have to remember to "feed" your savings account. It will happen without you even thinking about it.

You can do this by setting up automated transfers to direct a portion of your income to your savings account. This is an easy way to quickly build up your savings.

With banking apps on your smartphone, all of this can be done at any place, at any time, through the convenience of your computer, mobile phone or tablet.

For more questions on automating your finances, contact us today.

Revised November 2022