There’s no denying that managing your finances is a serious business. It requires constant vigilance and dedication. You need to keep a close eye on your cash flow, track your expenses, and budget for the future. And that’s just the tip of the iceberg!
The good news? There are plenty of tools and resources out there that can help. One of the best? Automation. When used correctly, automation can help you streamline your financial management processes and make them easier and more efficient.
Want to learn how to leverage automation for smarter financial management? We’ve got you covered.
1. Automate your bill paying
If you’re still writing checks and mailing in your bills, it’s time to update your system. Not only is manual bill paying a hassle, but it also leaves a lot of room for error. You could forget to pay a bill and get hit with a late fee, or you could accidentally pay the same bill twice.
Automating your bill paying is a great way to ensure that your bills are paid on time and that you don’t overpay. Most banks and credit unions offer free bill paying services, and many companies also offer automatic bill paying for their customers.
2. Set up automatic deductions
If you’re not saving for retirement, you should be. And if you are, you may want to consider increasing your contributions.
You can set up automatic deductions from your paycheck or your bank account and have the money sent directly to a retirement account, such as a 401(k) or an IRA. This can help you save more and take advantage of tax benefits for retirement savings.
If you’re self-employed, you can set up automatic deductions from your business bank account and have the money sent to a retirement account, such as a SEP-IRA or a solo 401(k).
No matter how you earn your income, it’s important to make sure you’re saving for retirement. Automatic deductions can help you do that.
3. Use a budgeting app
If you’re not using a budgeting app, you’re missing out on a huge opportunity to automate your financial management. There are many great budgeting apps out there that make it easy to track your spending, set savings goals, and create a budget that works for you.
Many budgeting apps also connect with your bank and credit card accounts to automatically import your transactions, so you don’t have to waste time entering everything manually. This makes it easy to see where your money is going and identify areas where you can cut back.
If you’re looking for a budgeting app, some of the most popular options include Mint, YNAB (You Need a Budget), and PocketGuard.
4. Schedule your savings
Saving money is a key component of a healthy financial plan. But if you’re waiting to see how much money you have left in your budget at the end of the month to save, you’re doing it wrong. Instead, you should pay yourself first, before you pay any of your bills.
By setting up automatic transfers from your checking account to your savings account, you can ensure that you’re making saving a priority. You can also set up automatic transfers to other savings vehicles, like a Roth IRA or a 529 plan. By automating your savings, you can take advantage of the power of compound interest and make sure you’re on track to reach your financial goals.
5. Automate your investments
One of the best ways to build wealth is to make regular investments in the stock market. However, many people are hesitant to invest because they don’t know where to start or they think they need to make large, lump-sum investments to be successful.
The truth is that you can start investing with just a few dollars, and you don’t need to be an expert to be successful. In fact, the best investment strategy for most people is to simply make regular, small investments over time.
One of the easiest ways to do this is to set up an automated investment plan. You can choose how much you want to invest and how often, and the rest will be taken care of for you. This is a great way to take the guesswork out of investing and to make sure that you are consistently working toward your financial goals. For example, if you are investing in properties, you can easily automate finding the best investment property lenders to know where to get cash flow.
6. Use a robo-advisor
Robo-advisors are algorithm-driven investment platforms that use technology to build and manage your investment portfolio.
You start by answering a series of questions about your investment goals, risk tolerance, and time horizon. The robo-advisor then uses your answers to build a portfolio of low-cost exchange-traded funds (ETFs) and rebalance it as needed.
The main benefit of a robo-advisor is that it takes the guesswork out of investing. A robo-advisor will automatically adjust your portfolio to keep it in line with your goals and make sure you stay on track.
7. Automate your charitable giving
If you’re like most people, you probably have a list of charities and causes you’d like to support, but finding the time to do so can be difficult. Automating your charitable giving is a great way to make sure you’re giving back to your community, even when you’re busy.
You can set up automatic donations to your favorite charities and causes on a weekly, monthly, or annual basis. You can also use apps and services that round up your purchases and donate the spare change to charity.
Not only does automating your charitable giving make it easy to give back, but it can also help you maximize your tax deductions, since your donations will be tracked and recorded automatically.
8. Use a money management app
If you don’t already use a money management app, you’re missing out! These apps offer a variety of features that can help you get a better handle on your finances, including budgeting, saving, investing and more.
One of the best things about money management apps is that they can be fully automated, meaning you don’t have to spend a lot of time managing your money. You can set up the app to do things like track your spending, pay your bills, invest for you and more. This can save you a ton of time and make managing your money a lot easier.
9. Automate your tax filing
No one likes to think about it, but tax season comes around every year. And if you’re not prepared, you could end up spending a lot of time and money trying to get your taxes filed on time.
The good news is that there are a number of tax preparation tools that can help you automate the process. These tools can help you gather all of the necessary information, fill out the forms, and even file your taxes for you.
By automating your tax filing, you can save a lot of time and stress, and you may even be able to find ways to reduce your tax liability.
10. Use a money-saving app
There are many apps available that can help you save money and make better financial decisions. Some of the most popular apps include:
• Acorns – This app will round up your purchases and invest the change for you.
• Truebill – Truebill is a budgeting app that will analyze your spending and help you find ways to save.
• Trim – Trim is a personal finance assistant that will help you save money by negotiating your cable and internet bills for you.
• Tally – Tally is a credit card management app that will help you save money on interest and pay down your credit card debt faster.
• Albert – Albert is a personal finance app that will help you save money and make better financial decisions.
11. Automate your retirement savings
If you don’t have a 401(k) or other retirement account, open one and start saving today. If you do have a retirement account, but you’re not contributing to it on a regular basis, you’re not alone. Many people wait to save for retirement until they feel like they have enough money left over at the end of the month. But, by then, it’s often too late.
The key to retirement savings is to start early and save often. Automate your retirement savings by having a percentage of your paycheck or a set amount transferred to your retirement account each month. This way, you won’t have a chance to spend the money before you save it.
Conclusion
You don’t have to be an enterprise company to take advantage of automation. There are many tools available to small businesses that can help you streamline your financial processes and save time.