How to Use Automation to Stay on Top of Your Finances

Let’s be honest, managing your money can feel like a full-time job. Between tracking spending, paying bills, and trying to save, it's incredibly easy to let things slip. But what if there was a way to take the tedious parts out of the equation and actually enjoy taking control of your finances? The answer, surprisingly, might be automation.

January 8th, 2022 – It’s a fresh start, and what better way to kick off the year than by building a solid financial foundation? We’re diving into how you can leverage automation to streamline your money management and reclaim your time.

Why Automate Your Finances?

The beauty of automation is simple: it removes procrastination. When you set up automatic systems, you don’t have to consciously think about it every time. This significantly reduces the chance of missed payments, forgotten savings goals, and impulsive spending.

Here’s How to Get Started:

Bill Payments: This is arguably the biggest win. Most banks and credit card companies offer automatic payment options. Set these up to pay your bills on the due date – no more late fees! You can even schedule them for a specific date, like the 15th or the end of the month.
Savings Transfers: Treat your savings goals like appointments. Automatically transfer a fixed amount from your checking account to a savings account (or investment account) each month. Even small, consistent amounts add up over time. Look into "round-up" savings apps that automatically transfer spare change to a savings account.
Budgeting Apps & Tools: Several apps and tools use automation to help you stick to your budget. These apps can automatically categorize your spending, alert you when you're over budget, and even suggest ways to save. Popular options include:
- YNAB (You Need A Budget): A powerful budgeting app that emphasizes giving every dollar a job.
- Mint: A free app that tracks your spending, creates budgets, and offers financial insights.
- Personal Capital: Great for tracking investments and net worth, with automated investment tracking features.
Investment Automation: If you’re interested in investing, consider robo-advisors like Betterment or Wealthfront. They automatically manage your portfolio based on your risk tolerance and goals.
Expense Tracking (with Automation): Many banking apps now offer automatic categorization of your transactions, which saves you a ton of time manually tracking your spending. Regularly review these categories to ensure they’re accurate.

Tips for Success:

Start Small: Don't try to automate everything at once. Begin with bill payments and gradually add other automation features.
Review Regularly: Even automated systems need monitoring. Check your accounts regularly to ensure everything is working as expected.
Customize Your Settings: Most automation tools allow you to customize your settings to fit your specific needs and goals.

Taking control of your finances shouldn’t feel like a chore. By embracing automation, you can create a system that works for you, freeing you up to focus on what truly matters.