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How To Automate Your Personal Finances

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By automating bill pay through online banking, you can gain time in your day — and maybe even better manage your money. Transferring money to your brokerage account is easily automated. From within your brokerage account, have a certain amount of money withdrawn from your bank account via ACH and placed in your brokerage account. Configure this withdrawal to recur on the first of every month. A percentage of your paycheck should be automatically transferred to your retirement savings account, such as a 401(k).

If you don’t have the funds in there, you’ll end up owing even more due to expensive overdraft fees and any other fees the payee may charge. Automating your finances helps you achieve specific goals by systematically creating positive long-term habits while fighting the temptation to deviate from your financial plan. For example, setting up an automatic deposit into my BrightPlan Investment Account each month requires little to no ongoing effort.

First, you want to make sure that you have enough money in your account to cover the withdrawals. You forget to mail out the cable payment on time, and you’re hit with a late fee. You accidentally spend the money you’d designated for the phone bill. Even the most organized among us has had a momentary lapse in memory or judgment. But those lapses can through a wrench into our financial planning.

They then end up saving more because the unassigned money isn’t just disappearing into the checking account ether. Once you’ve consolidated your accounts, and pared down the services you’re using, it’s time to setup a budget. Luckily there are plenty of software out there that can help you to automate the process of setting up and maintaining a budget. My favorite is You Need A Budget (YNAB) (Get a $6 discount through my link).

How To Automate Your Bill Payments

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In order to automate your monthly payments, you need to have a list of all your accounts, along with URLs, usernames, and passwords. A good goal to have is to set aside 5% to your Roth IRA, 5% to your savings account, and the remaining 90% to your credit How To Automate Your Bill Payments card debt and miscellaneous bills. The final piece of automating your finances is finding a way to automatically increase your savings over time. Setting up automatic escalation requires a little more legwork depending on where the savings are going.

Now share your commitment to financial change and inspire someone else. Did you know that you can even automate payments to small companies and individuals? If the bank can’t bookkeeping wire the money, they’ll simply cut a check and mail it. To do this, simply automatically send money from your bank account directly into your savings or investment account.

This way your money moves without you needing to do a thing. Speaking of those unexpected expenses, automating your savings helps you to deal with them, too. Automating your savings could involve setting up an automatic transfer from your checking to your savings account every pay cycle, so you never have to remember to put anything aside yourself. We pay for everything on our cards, so we have pretty hefty credit card bills each month.

If you have a goal to pay off your credit card debt, choose the amount and frequency of payments in your credit card’s auto pay feature. It’s amazing how quickly you can reduce your balance when regular payments are being applied to the total.

  • If available, the most convenient option is to use your bank’s or credit union’s bill-paying service.
  • You log into your checking account online, input who, how much, and when you want to pay, and your financial institution sends an electronic or paper check.
  • You can do it as a one-time thing or set up recurring payments.

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You risk overdraft fees …Some payments fluctuate in amount, and if you’re not careful, your account may be overdrawn. Overdraft fees vary by institution, but the median is $34. Keep tabs on your bank account and have enough in there to cover all your automatic payments.

Automatic bill payments are routine payments made from a banking, brokerage, or mutual fund account to vendors. Sure, you know your bills can be automated, but maybe you’re not sureifthey should be. Please note that all calls with the company may be recorded or monitored for quality assurance and training purposes. Clients who are able to stay with our debt resolution program and get all their debt settled realize approximate savings of 50% before fees, or 30% including our fees, over 24 to 48 months.

It transfers small amounts automatically from your checking account to your Digit savings account. Partial to the service provider, and partial to your Money Bucket, debt or past-due bill. In fact, this is going to be the month where you finally save enough money to get a decent cushion in your savings account. Putting your bills on auto-pay does not mean that you can completely forget about them.

How To Automate Your Bill Payments

Assuming you have a credit card with no debt that you pay in full each month, try to use it to pay your other bills. Each paycheck we have a set amount that automatically transfers to his savings account. You online bookkeeping need to review your transactions at least once a month to check for errors, like double payments. Automation is not infallible and mistakes can be made by the company pulling the money from your account.

These days, you can save yourself oodles of time and stress simply by setting most of your monthly tasks on autopilot. While it may cost you a little bit of time to set up, the future hours you’ll save by automating your finances can be priceless. Budgeting, paying bills, and making deposits takes time, and it all adds up. It isn’t uncommon to spend several hours each week sorting through your bills and monthly statements. And if you’re like most people, it just causes you stress and takes up time that would be better spent elsewhere.

I made a list of all the bills that I pay each month and scheduled them to be due around the same time, right after being paid. From your emergency fund account, configure a set amount of money to be withdrawn from your bank account until you have reached your target emergency fund amount. Create a spreadsheet with all of your automatically What is bookkeeping paid bills, savings drafts and automatic investments, and on what dates they take place. Also make note how they are being paid, and from what account. If you have setup a system to automate your financial life, it’s important to make note somewhere of just what bills, savings goals and investments are set on auto-pilot.

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