Broker Check

Automation Is Everything

March 30, 2023

Automating your personal finance can change your life. And that isn’t an exaggeration. 

We all know and have been there when you know you should do something and you just don’t. That is especially true when it comes to your personal finance and investing. So, automating that makes life a whole lot easier and also sets you up for an unbelievable level of success. 

Broken down simply. Automation = less stress and consistency. 

Let’s break down each stage of our life we can automate. 

Automatic Investment Contributions

A lot of us already do this through a 401(k) or other work retirement plan. But, we don’t think much of it because we are so used to it. That’s exactly the point and the goal. Make it so routine you don’t think about it. So for our investment contributions, continue to make the regular 401(k) contributions and build your retirement. And if you aren’t now, try to set that up. In the meantime,  you could also try something new. Start small, and just invest $20 per month into a different account IRA, Roth IRA, Individual Account, whatever you’d like. If we find a way to invest more automatically, and every once in a while review it and see if you’d like to do more or not, over the long term your financial status would change drastically. 

Automatic Savings Contribution 

It is good to have goals to save for. Whether you use the old envelope trick, having a separate savings account, or keeping it in your checking but watching it grow, we all have to save. Automate this. A potential option and the easiest for me is to have a separate savings account. Once you set that up, determine a fixed amount or percentage of income that is transferred regularly. Set a day during the month that you want the money transferred and just let it go. Over time you’ll forget that transfer even happens because it is so routine and when you do check in, you’ll be that much closer or even achieved your saving goals. 

Automatic Bill Payments

The goal with this one is straightforward, make something annoying like bill paying as easy as possible. Whether it is rent, utilities, car, credit card, whatever the payment may be, if it can be automated then automate it. This will save you the hassle over time of having to remember the dates that bills are due and let you be stress free knowing it is taken care of. 

Ultimately, automating your financial life saves you a ton of time. No more thinking about it, just setting it and forgetting it will change everything and you’ll have more time for stuff you actually want to do in life. You’ll also have way less stress. And finally, you’ll create the consistency needed to change your life and achieve whatever short and long term goals you have.