Automating finances is one method that can greatly improve the way we spend as well as save. Automation helps us stick to our objectives, there’s less procrastination, forgetting or poor judgment. Our time and energy are also freed up; we don’t have to worry about paying bills on time every month. With technological advancements, automation is even easier. Anyone who is looking to prudently manage their money should automate their finances as much as possible.
Here are some ways that you can go about it;
Every month we have bills to settle, the process takes up our time and sometimes we even forget to pay them. We all know the repercussions; we may end up being penalised or worse, lowering our credit rates. Automating bill payment ensures that the right amount is paid when it’s due. You don’t even have to be there in person, the amount will be deducted from your bank account automatically when the bill falls due. All that you have to do is ensure that there is enough balance in your account to settle the bills. Otherwise you may end up overdrawing the account leading to the problem which you are trying to avoid in the first place.
The need for an emergency fund cannot be overemphasised. Your financial stability is solely dependent on this fund; therefore you need to set aside an amount every month or periodically. Automating this so that on a given day of the month an amount is deducted and channeled to the account will ensure that there are adequate funds for emergencies. This also ensures that there is no skipping. In most cases, this is the last account that gets allocation and the chances of it being overlooked are high. Through automation, there will be no skipping; money will be channeled to the account when the date falls due.
Apart from general savings, you need to put aside money for investment. Your current source of income may not last forever, so automating an investment account will ensure that the fund grows every month. Also, when you set a given amount for this account, it’s also guaranteed that a target will be reached and money put to proper use.
Automation of your finances helps you to manage your money effectively. It reduces the chances of overspending or putting money to the wrong use. This is a must have for all who are looking to manage their money prudently.
Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.