Young woman at home working on her finances.

How To Automate Your Finances

Sarah Sharkey3-minute read
April 11, 2021

Keeping track of your personal finances shouldn’t be exhausting. However, it can feel like a never-ending chore for many of us. 

After all, it can take time to stay on top of your budget, pay all of your bills and move your money between accounts. Although each of these tasks is important, they should not monopolize your life. With some quick automation, you can save yourself a lot of time. Plus, you’ll eliminate some stress by paring down on your personal finance to-do list. 

Today, we’ll discuss how to automate your finances and avoid the stress of constantly working on your money to-do list. 

Why You Should Automate Your Savings

If you’re working to build your savings, then it’s important to automate this process. Otherwise, it can be almost impossible to stick to your monthly savings goals. With last minute ‘must-haves’ waiting to drain your checking account, it’s critical that you take your savings out of your immediate reach.

Before you can determine how much you should save each month, it’s important to take a closer look at your monthly budget. If you don’t have a budget yet, you can build a budget that works for you. Once you have a handle on your budget, then you can more easily start to automate your finances. 

How Do You Automate Your Savings?

Instead of running through your internal arguments every single payday, set up an automatic transfer to your savings account. 

As soon as your paycheck hits your checking account, have the bank automatically transfer a set amount of money into your savings account. You can automate accounts to allow for a smooth transfer without any assistance from you. Not only will you save time, but also ensure that your savings safely make its way into the appropriate account before you can spend the money. Of course, you can always dip into your savings account if a true emergency arises. But this automation will force you to think about your savings goals and ensure that it’s truly an emergency.

Set Up Automatic Bill Payments

In most cases, you’ll be able to set up automatic payments for your bills. Think about your mortgage, credit cards, utilities, subscriptions and more. Find out if you can set up automatic bill payments for each of these monthly bills. 

One difficult bill to set up automatic payments for might be your rent. However, your landlord may be willing to find an automatic solution. After all, they don’t want to worry about collecting your rent check on time every month. 

It may take some time to set up these automatic payments. However, it’s worth the upfront effort to permanently remove these tasks from your monthly to-do list.

How Do I Automate My Investments?

After you’ve taken the time to automate your bill payments and your savings, it’s time to think about your future. Since you no longer have to worry about whether or not your bills get paid on time, you should start thinking about building a better financial future. 

The best way to build a solid financial future is through a thoughtful investment strategy. If you choose to set up automated investing, then you’re thoughtfully investing in a regular rhythm for your future. Automated investing can take some of the urge to ‘time the market’ out of your hands. Since we’re all human, it’s natural to invest with a more emotional base. However, you’re more likely to build a prosperous investment portfolio through automatic deposits into your investment accounts. 

First, automate the money going into your employer-sponsored retirement accounts. If you have access to a 401(k) or 403(b) then at least contribute enough to receive your employer match. Typically, this money will be deducted directly from your paycheck. After you’ve squared away the automation of your employer-sponsored account, you can set up automatic contributions to your taxable investment accounts. 

How To Automate Your Finances

Automating your finances can eliminate a lot of stress from your life. Instead of running around on the weekends trying to finish paying the bills, you can take a minute to relax knowing that all of your bills have been paid. 

Not only can you eliminate some stress from your life, but also improve your personal finances without any interference. It can be a constant battle to remember to separate your savings or make a deposit to your investment account. With the help of automation, you can set up a system that will push your finances towards your goals. Over time, it’s completely possible that thoughtful automation of your finances can make you rich

If you’re interested in continuing to improve your financial situation, then you can create a Rocket HomesSM account. The free account can help you work towards improving your personal finance situation as you move towards your long-term financial goals.

Sarah Sharkey

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make savvy financial decisions. She’s covered mortgages, money management, insurance, budgeting, and more. She lives in Florida with her husband and dog. When she's not writing, she's outside exploring the coast. You can connect with her on LinkedIn.