Find out how you two can stay on top of your money without stressing over every penny!
Easy Guide to Automating Your Money
Last show I talked about the pros and cons of money and automation. Some of you may have decided that it’s something you want to have and are ready to get started.
Automating your finances can help you grow your finances with minimal maintenance, but If you’ve never done it before it can be seem intimidating.
In today’s episode we get into:
- Finding the right bank or credit union for your needs
- Setting up accounts quickly and easily
- Taking care of bills, contributions, and savings
Hope you enjoy!
Choose Your Banks/ Credit Unions Wisely
Before we begin on the nuts and bolts of this system, I want to emphasize the importance of having the right checking and savings accounts for the two of you.
There are plenty of options out there so don’t settle for sub-par service, unnecessary fees, or paltry interest.
When automating, you want to keep things flowing, so look for a bank or credit union that has quicker transfer times.
Your money should be working for you rather than being tied up in between accounts.
If your current credit union or bank does not, it may be time to make a switch.
Link Accounts and Schedule Transfers for Saving and Investing
Once you have the accounts set-up, it’s time to link them and set up the automatic transfers and payments. Usually it’s labeled transfers or external accounts.
Have your paychecks directly deposited into your joint checking. This will be your clearing house.
Go ahead and have your savings and investment contributions taken out sooner rather than later. You’ll be more likely to reach your goals AND once your bills are taken out, you know whatever is left over you can use for spending without feeling guilty.
Setting Up Bill Payments
Once your deposits, savings, and investment transfers are scheduled, you can go ahead and get your bills in. It took us less than hour to do and we only need about 15 minutes a month to review and tweak as needed.
Enter the bill payers, addresses, due dates, account numbers, and bill amounts. You can set the bills up to be recurring, where it will pay it automatically for you.
If a bill changes from month to month like your power bill, just enter the average amount. You can login and adjust as your bills come in through the mail.
Tweak The System as Needed
Keep an eye out on your accounts to make sure everything is running smoothly. You may have forgotten irregular bills like life insurance premiums or certain services such as your cable bill may have increased their rates.
Even with those possible hiccups, it shouldn’t take you much time to maintain things.
And that is it – your minute guide to automating your money. If you have any more question, please send them in by leaving it in the comments or emailing me.
Thank You to Our Partners
Support for this podcast comes from partners like Personal Capital. Easy to set up & easy to use. You can have all your investments, income, and expenses all pulled into one place.
Did I mention it’s free? Why don’t you give Personal Capital a try today?
Support for this podcast also comes from Divvy Investments. If you’re looking for an easy way to help keep your portfolio on target for retirement without having to link your accounts to yet another service, check out Divvy. Listeners can get a 10% discount; use the coupon code, “Couplemoney”.