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In our lives there are so many different things to keep track of that it can become easy to forget things. Luckily, in today’s world of technology there are a variety of tools available. However, we need to know how to use these tools properly to get the most value, and make them automatic. Every bill and company is different but many of them want to make it easier for you to pay them.
1. Setting up automatic transfers to your savings account each month. This can be done from your checking account or even directly from your paycheck. Reach out to your company’s HR department to get this setup so the money won’t even hit your checking account making it less likely you will use the money since it will not be right there. Also, it adds a bit of a barrier to cancel this which will encourage you to not cancel your saving goals.
2. Enrolling in automatic bill payment to avoid late fees. If you are worried about missing a payment and paying late fees, most companies offer a way to pay this on a recurring basis, typically monthly to prevent this from happening and give you peace of mind. However make sure to still track these payments as we can forget how much the payment is and it may have an unusual amount or increase we may be unaware of otherwise. In addition, some companies may even offer a discount for using these types of methods so that could be another incentive.
3. Using apps or tools to track and categorize your expenses automatically. I would recommend using a software such as Mint (they have a free version I have been using for about 10 years), this is made by the same company that does TurboTax so if you use that software this may make it a bit easier for you come tax time. This creates a one stop shop where you can review things as a whole and if anything looks odd you can look into that specific account.
4. Utilizing automatic investment plans to regularly contribute to your retirement account. With investing companies they make it very easy for people to set items up automatically with more or less work depending on if you have an investment advisor you can utilize. These brokerage companies will typically let you set up recurring deposits into these accounts, automatically purchase some investment types upon deposit, and even have the option to reinvest your dividends if applicable. If you have an advisor they can handle this a bit more for you to make it simpler, but typically costs you more.
5. Signing up for automatic debt payments to ensure timely repayments. With the impact debt such as credit cards can have on your credit score if you are late or miss a payment, these are especially important to set up automatically. With just spending a bit of time setting this up you can put away your worries and increase the number of on time payments that display on your credit report. Just validate that your first payment does go through as some companies may take a bit to set this up so you do not want to miss your first payment because you thought it was automatic.
6. Using automatic payment reminders to stay on top of credit card due dates. If your credit card or other bills allow it, have it send you a reminder so you are aware of how much and when the payment will come through. This gives you an opportunity to validate that nothing looks off, you have enough in your account to pay and is a great reminder.
7. Setup processes for bills that may need to be mailed or have less automated processes. For example, my water bill is the only bill I currently have that I have with no way of auto paying and need to mail a check. What I do is I have a drawer with envelopes, stamps, return address stickers (love these and save so much time), and my checkbook, this way whenever I need to pay a bill everything is right there, plus creates a home for my checkbook so I never lose it. If you were born after the year 2000, please use Google or Youtube to learn more about how most of your bills used to be paid by check.
So consider this with the next time you have a financial issue you keep forgetting about, is there a way to make it be more automatic? However please be cautious of scams and fraudulent websites, do at least a bit of research or check with friends and family to see what they do or use to make sure you are not put in a bad situation. Just do not forget that these are set up and keep track of them in case anything changes or needs to be updated.
