Investing, saving and sticking to a budget takes discipline, and that can be intimidating. According to the financial planner Orlando, a little bit of digital automation can make things a whole lot easier.
Automation? It’s simply saving more by doing less. By setting up systems that automatically put money away, you’ll be closer to achieving your financial goals, like retirement, paying off bills, or taking a big trip, faster.
Here’s how to automate three best financial practices.
Pay Bills Automatically
Most companies have an “autopay” option and it is an amazing tool. With only a few clicks, you’ll be able to set up automatic monthly bill pay, usually on a date of your choosing. With some payees, signing up to use autopay will also include a small discount. This is so helpful with recurring charges like student loans, mortgages, or car payments, and even better if the amount doesn’t change from month to month. This auto-option will reduce your stress when it comes to bill pay by eliminating the chance to overdraw your account or the potential late fees that come with forgetting to pay a bill. Just set a monthly calendar reminder so you don’t lose track of what you’re paying for.
Everytime you get a paycheck there is an opportunity to save money or spend money. Eliminate the temptation and secure your funds by setting up direct deposit or an auto draft. More often than not you’re able to send a percentage of your paycheck straight to your savings account every pay period. With this option enabled, you’ll never forget, or procrastinate saving money. If your employer does not have these options for you, speak with your banker; oftentimes you’ll be able to make arrangements through your account holding institution to send a specified amount of money into your savings the day after you’re paid, each month.
Automatically Fund Retirement
If you’re lucky enough to work for a company that offers a 401(k) retirement plan – a plan that is automatically funded each paycheck – take full advantage of it. Be sure to confirm that you’re automatically contributing the most possible. If your company matches you, or even if they don’t, those funds will add up quickly and significantly. Another general benefit of this type of retirement plan is that you don’t have to pay income tax on your contribution. This means there’s more money in your pocket while you’re able to more freely invest in your future.
We live in a modern world with modern tools meant to help us succeed. Capitalize on those that are available to you. They will make your life less complicated and less stressed while simultaneously increasing the amount of money in your savings account.