Automating your personal finances is a great way to stay on top of your financial situation and to increase your financial wellbeing. In this article, you will be introduced to three ways you can automate your personal finances.
Staying on top of your personal finances can be challenging especially if you have numerous different bills that require different forms of attention. Automating your personal finances helps to minimise any errors that may occur if you were to do everything off the top of your head. It also increases the quality of your life as you are meeting your financial obligations without spending a large amount of time on managing your finances. To make your life easier, here are three simple ways to automate your personal finances.
Automating your personal finances helps to minimise any errors.
1. Set up direct debit for all your monthly bills
The first step in automating your finances is setting up direct debits for all your monthly bills. This helps to ensure that you won’t miss paying any of your bills, which helps you avoid any fines you may have to fork out as a result of late payments. This also saves you time on manually going through your bills and having to go stand in line at the bank to make the payments. This practice gives you peace of mind as you know your bills are being paid automatically without you having to worry about them.
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2. Set up direct debit on payday to deduct the amount you want to save each month
Secondly, you want to set up an automatic transfer from your checking account into your savings account. This should be the first deduction that is made from your salary as this is the money that actually helps you grow your wealth. It doesn't have to be a large amount, just what you can currently afford. Once you have accumulated an adequate amount, you can start exploring ways to grow your money such as investing in the property market for example.
3. Set up direct debit payments higher than your minimum repayments on your credit cards
Thirdly, setting up direct debit payments to your credit cards or other loans ensure that you will never miss a payment and thus avoid any late payments fines that may arise. Having said that, ideally, you want your credit card repayments to be higher than prescribed minimum repayment amounts to pay off your debts quicker so that you can be debt-free sooner than later.