How To Fully Automate Your Finances

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How To Fully Automate Your Finances
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Best Way To Fully Automate Your Finances

Not long ago, if you wanted to manage your money effectively, you’d often have to pay for an expensive financial advisor. However, fast forward to today, and now anyone can manage their finances effectively, and the best part is it can all be fully automated. Innovative fintech solutions can now help improve your saving and spending habits and help avert poor choices. So if you’re someone who is looking to get a better grip on your personal finances, then you’ll want to carry on reading. In this article, we’ll look at three of the best ways to take control of your finances through automation.

Automate Recurring Bills

When we get paid at the end of the month, one of the first things we should be doing is paying off our bills. However, many of us often have a large number of bills to pay, and it can be easy to forget which ones need paying and when. When you use automation, this issue goes away entirely.

Whether it’s your mortgage payment or mobile phone bill, by setting up an automatic recurring debit from your checking account to your service provider, you’ll make sure your bills are all paid on time, and you’ll avoid any late fees. You can even arrange with companies to have all your bills to be collected at the same time every month, i.e. payday.

Building wealth is all about being in control of your money and not being wasteful. Automated bill pay features will help you avoid unnecessary fees and help free up your own time each month so that you can focus on the more important areas in your life.

Automate Savings

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More and more people are beginning to understand the importance of saving, especially due to the Covid-19 pandemic. This is great to see given that savings are so useful in giving yourself a financial buffer from emergencies that may arise. However, despite a growing awareness of the importance of saving, many still struggle to regularly put money aside.

Most people struggle because we often tend to discount the future in favour of today (also known as present bias). Our day to day lives are usually busy and hectic, and for that reason, we often forget about the future and simply focus on the present. So when it comes to saving, most of us will say something along the lines of “I’ll start saving next month.” But as each month passes, guess what? You still haven’t started. Whatever the excuse may be, by not starting, you are only hurting yourself.

This is where automation can help you. Using automatic saving tools, you can regularly put money aside and build up a sufficient savings pot. Today, some fantastic fintech apps can help you achieve this, like Chime. Features such as Save When You Get Paid, will automatically transfer 10% of each paycheck into a separate savings account. While other features like roundups, will automatically round up each transaction made through your account and deposit the amount into your savings account.

Automation has made it easier than ever to start saving. Simply find an amount you can commit to and have it automatically transferred each month into a savings account. Whether it’s $50 or $5000 a month, the key is just to start and turn saving into a habit.

Automate Investments

We touched on the importance of savings, but if you really want to build your wealth, then investing is critical. Unfortunately, you don’t get rich on the interest you receive in a savings account.

Thankfully, there are now are some great automated investing tools which beginners can take advantage of that make investing easy and automatic. Revolutionary companies like Betterment, Wealthfront, and 8topuz have made investing accessible for all. The best part is, these platforms often do everything for you. After you answer questions about your goals, risk appetite and connect your bank account, the platform handles the rest. If you’re a set-it-and-forget-it type person, you’ll love how these platforms make investing simple.

Most automated investing platforms allow you to set up recurring monthly deposits into your investment account, which means you can automatically allocate a percentage of your monthly income into an investment account.

Investing consistently is the best way to grow your money, and by following a dollar-cost averaging investment strategy, you’ll ride out the impact of volatility. Commit to investing the same amount consistently, month in and month out. Forget about trying to time the market and keep investing regardless of what the market does.

Final Thoughts

Managing your finances no longer has to be a time-consuming process. Thanks to automated tools, the process has become straightforward and hands-off. Perhaps, as time goes on, technology may even be able to make all our financial decisions for us. That would be pretty great, right?

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