A financial strategy that works really well is automation. The idea behind automating your finances is that you can set up your finances to mostly manage themselves. This works especially true today because the Internet made everything so much easier to set up automatic payments and transfers.
My finances are mostly automated and I prefer it that way. Not having to think about the mundane tasks makes it easier to ensure that my bills are paid when I’m out of town. It also means that I don’t have to think about setting aside money for my retirement account or for other savings accounts.
If you want to automate your personal finances, carefully consider the situation before moving forward. While automation can be great, it doesn’t always work in your favor. If you aren’t careful, you could end up overdrawing your account. Before you automate, here are a few things you should consider:
1. Is Your Budget Under Control?
Your first step is to make sure your budget is under control. Do you live within your means? Do you have enough coming in to take care of your expenses? If you automate before your budget is in hand, you could end up overdrawing your account on a regular basis. Make sure that the spending is in line with income before you decide to automate your finances.
2. What’s the Timing on Your Bills?
Another consideration is the dates your bills are due. When you choose automatic payments, you usually pick a day to have the money taken from your account. Consider your payment schedule before you pick that date. If you are paid…
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