5 Ways to Automate Your Finances

07.25.07 | Money, Online Banking | 7 Comments | by junger

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Online banking is so appealing because it makes your life easier. You don't have to worry about keeping track of paper statements, checks to deposit and when your bills are due.

Automating your finances is easy and can save you money, time and stress. If your finances aren't automated, you're missing out on time you could be doing other things — like living your life.

Here are five ways to automate your finances.

  1. Recurring Utility Payments
    Many utilities and services offer automatic monthly payments, from your cable provider to the electric company. Some even offer discounts for signing up. Don't get hit with late payment fees — have the money deducted automatically from your billpay account.
  2. Automatic Savings Deposits
    Force yourself to save for retirement, emergencies or a house by setting up automatic transfers to a high-yield online savings account at the beginning of the month. Treat your savings like any other bill, and you'll have a nice little chunk of change before you know it.
  3. Direct Deposit
    Most people have access to direct deposit, but did you know that those who use it save $90 more monthly than those who don't? You don't have to worry about carrying around paper checks and won't lose interest while the money isn't in your account when you're using direct deposit.
  4. Automate Your Debt Payments
    Every month, the payment toward my school loans gets automatically deducted from my checking account by the Department of Education. The even better part is that because I'm using automatic payments, my interest rate gets an automatic reduction. It doesn't sound like much — .25% — but over the long run, it's a significant amount of money.
  5. Re-invest Your Dividends and Capital Gains
    When your investments come up for dividends and capital gains, set them up to re-invest. Unless you're at a time where you need access to that money, keep the savings and growth going — automatically.

Automating your finances isn't hard and the benefits are huge. You can save money on automatic bill payments, never worry about late fees and make sure that your savings is continually being fed.

Don't wait. Every day you don't automate your finances is a day you're spending more time managing your money than living your life.

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