A guide to automating your finances

Keeping track of your finances in the digital era is easier than it’s ever been, although choosing the system that works for you can be tricky.

Setting up a system for savings and paying your bills will give you peace of mind and let you concentrate on enjoying life.

The first step to automating your finances is linking all your accounts together. Make a list of your bank details, credit cards, pensions and any other regular household expenses.

Set up your main bank account – the one that receives your salary – to automatically forward key outgoings such as utility bills, savings, credit cards, pension and any other items that need paying on time. If you set money aside for online gaming, take advantage of the Sun Play Bonus Code and stick rigidly to your budget each month.

Establishstanding orders and direct debits for all of these, so you know what is going out of your account and when. If you don’t have the cash available on the dates you’ve chosen, you run the risk of going overdrawn and incurring additional charges.

Renowned financial expert Ramit Sethi previously advised breaking down your personal finances as follows:

  • 10% towards investments
  • 5% towards savings
  • 85% towards fixed costs and guilt-free spending (60% – fixed costs, 25% guilt-free spending)

Automating your investments at the point you are paid allows you to relax, safe in the knowledge that a portion of your income is working for you to secure a higher return further down the line.

The savings portion includes things like Christmas, birthdays and holidays, plus other longer-term goals such as a deposit for a house or saving for a wedding.

Setting finances aside for these things should ensure you are never caught short and can focus on the portion of guilt-free spending that will ultimately enhance your lifestyle.

With regards to your fixed cost payments, it’s important to remember to monitor your statements to ensure the correct amounts are leaving your account and that bills are being paid on time.

Once you have established your key outgoings are covered you can concentrate on enjoying the guilt-free spending element you have set aside.

Whether you use this to simply enjoy an active social life, shop for clothes or something else that takes your fancy, you can do it safe in the knowledge that all the so-called “boring” items are covered.

Automating your finances can save you lots of time, effort and worry, and thanks to modern technology it’s easy to achieve.

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September 22, 2017  A guide to automating your finances