Last week we talked about loving our future selves, and dove into the world of IRAs. Today, I’d like to share a way you can love yourself and share the wealth with both future and present you – automation! I’ve written about automation before, and why it is so beneficial to our financial lives. The idea is simple: by automating your finances, you reduce your decision making, thereby reducing your chances to change your mind or forget about saving money or paying a bill in full. Automating your finances make saving money easier and less of a mental effort. This principle is what Steve Jobs and Mark Zuckerberg employ in their wardrobe choices. They’d wear the same thing every day so that they could conserve their brainpower for other more important decisions!
Here are my five ideas you can use to dip your toes into the world of financial automation. Start off slow – just pick one and try it out. If you like your results, you can come back for more!
Automate a Savings Goal
Set up an amount to automatically be sent to a particular savings account for a goal you’re pursuing. Don’t worry about the amount, any amount is great! Simply trying this is the most important step.
Automate a Bill Payment
Automating a bill payment insures you will not pay late fees. In the long run, this could save you a lot of money.
Set an Alert
Many banks offer to send alerts when your account hits a minimum balance. Set this up so you don’t overdraw your account. This way, you can avoid those pesky overdraft fees.
Connect Your Accounts
Connect your accounts to a money management system or app so you can really see where your money is actually going. I use Mint and I love it! Personal Capital is another I’ve heard of, and many people also swear by YNAB, or You Need a Budget.
Set Up Direct Deposit
Have your paycheck automatically deposited into your checking account! This is so much more simple than having to take all that time and effort to take your paycheck to the bank. Even if you have your own business and have varying income, you can create a solopreneur paycheck using the Profit First system. If you’re interested in reading more about this, I recommend my posts Create Your Own Paycheck and How to Pay Yourself First.
If you enjoy these tips and want more resources on automation, I’ll happily recommend The Automatic Millionaire by David Bach. This book emphasizes how savings habits and automation can help you build up savings for retirement. He also has a variety of free resources available for download on his website, so go ahead and take a look at those too! And of course, if any of this has piqued your interest, I’m happy to talk to you about setting up money systems for your business. Take a look at my service packages and schedule a curiosity call!
Image Source: Rodion Kutsaev