Ways to Automate Your Finances
Financial success is a product of meticulous planning and engineering. You need to take deliberate decisions to act and set up processes and systems that help you limit undesirable financial behaviors and help you secure your financial future.
Needless to mention, making such plans every other week can be tedious and time-consuming. Automating your financial systems allows you to pay your bills on time, send money to your savings account on time, and take care of other commitments. You can use the time you save to make more money or identify additional areas where you can limit expenses and save even more. What are some ways you can automate your finances?
Automate Your Credit
The biggest concern is your credit score. Whether you have debts or not, it's essential to keep a close eye on your credit.
A bad credit score can affect the amount you owe in interest making securing credit expensive, compared to when you have a good credit rating.
There are various services you can use that will not only keep track of your credit, but in case it is dented, they will also offer suggestions on ways to improve it. Some services will go as far as challenging some negative marks on your history.
Automate Your Budget
A tight, well-thought-out budget is critical when you're looking to improve your saving culture. However, coming up with a budget and sticking to it are two different things. Having an automated budget can help you stick to the budget and prevent unnecessary spending.
Budgeting tools are a great asset to have when you're trying to rope you in your expenditure and spend more responsibly. By automating your budget, you can get alerts when you're spending beyond your limit. The best part is some of these budgeting apps are free so that you won't be spending a cent more.
You can't afford to keep incurring wasteful fees if you intend to build wealth, save and gain financial independence. Penalties for late bill payments are something you can easily avoid by automating bill payments.
Most credit cards have automatic bill pay features, so you never miss a payment on your mortgage, electricity bill, or credit card payment.
Automating your bills will also mean you get to free up time that you would spend paying the bills each month.
Lastly, with all your savings, you need to consider investing in non-retirements accounts. Investing will help you grow your finance base. Putting your money in investment accounts like Betterment will allow you to enjoy a good return on your investment with little effort.
While automating makes it easier for you to save and keep track of your money, the one aspect of your finances that you should not automate is spending. Make sure you only spend on what you need, not what you want. To maximize savings, unsubscribe from retailer mailing lists, keep your credit card information away from online stores, and remove one-click ordering from sites like Amazon to cut temptation.