Turning over control of your money to computers might sound like an odd concept, but doing so can actually save you time and money! Humans can easily forget bills, make mistakes, and ignore savings and investments. Over the years, this could be the difference between financial success and heaps of fees and paycheck-to-paycheck stress.
When you automate your money, your cash flows through a system you define every month without lifting a finger. Things like emergency savings, retirement investments, student loan payoffs, and credit card payments can happen on paydays and due dates without ever writing a check or having to remember to click a button. Follow along to learn why you should automate your money and how to get started.
What does it mean to automate your finances?
Automating your finances doesn’t require an advanced degree or knowledge of code. It just means logging into your online banking and setting up recurring payments and transfers using existing tools your bank already gives you for free!
Most banks give you the ability to set up recurring transfers to internal or external accounts. You can create transfers to send on payday, weekly, monthly, or any other schedule you choose that your bank supports.
If your bank doesn’t have automated transfer tools, consider moving to a new bank. This is standard stuff in the 2010s and beyond, and something every quality financial institution offers to personal banking customers at no extra cost.
Outside of your bank account, you can set up some automated payments at investment and biller websites too. In the next sections, we will dive into the “how to” for getting your automated personal finances working for you.
How to automate savings
Automated savings are great for things like emergency funds, down payment funds, vacation funds, holiday gift funds, wedding savings funds, and any other cash-based savings you can think up. The more you save, the more you have for a rainy day or a future goal.