How to Automate Your Money

Imagine if you had a personal assistant managing your money for you! They pay your bills, set aside money for investing, save money for your next vacation, and tell you how much money you can safely spend on fun things without messing everything up. That’s what money automation does for you. In this guide I’ll show you how to automate your money from start to finish. Automate your money, sit back, relax, and enjoy life like you should!

 How to Automate Your Money

How to Automate Your Money

HOW TO AUTOMATE YOUR MONEY

Have you ever tried running or working out every day after not doing it for a long time? How did it go?

If you’re anything like me, it’s sooo hard to build that habit and do it consistently. Things come up, I forget, sometimes I just don’t feel like it.

Managing your money successfully works the same way. You could say to yourself today, I’m going to manage my money like a badass and begin saving money tomorrow!

How will it go? Maybe you’ll make some progress, but most of the time it will just drop off and you’ll be right back where you started.

There is a way to beat that problem. You probably guessed it! Automate Your Money!!

With exercising you can’t automate your workouts but thankfully with money you can automate it.

This is the secret to success with money! Yes, you just learned the secret to becoming rich and handling your money like a badass!

(That’s why I called the site, Let’s Automate Your Money.)

With automation, your money just works for you. You don’t even have to think about it, or even remember to do certain financial tasks on certain days.

It’s chugging along in the background making you richer every year.

So how you do this amazing automation secret?

I’m going to show you.

The Money Automation Flowchart


Here is an overview, but ignore it for now. It will make more sense as you read the rest of this guide.

 How to Automate Your Money Flowchart

How to Automate Your Money Flowchart

Automate Your Paycheck Direct Deposit

This is the first step. If you don’t have a bank account you need to get one. I recommend Simple, but the choice is yours.

Once you have a bank account you need to make sure every income you have is going straight into your bank account via direct deposit.

There are some exceptions but most modern employers can send your paychecks directly to your bank account just by filling out a simple form.

If you have other income like government payments, they can also direct deposit into your bank account. It’s simply a matter of filling out a form.

If you have other income from sources like PayPal or Stripe, those should also be direct deposited directly into your bank account.

It’s an easy first step and quick win!

Automate Your Insurance Payments

If you work for a company you most likely have insurance through them.

Make sure any insurance related expenses are coming out automatically of your paychecks from your employer.

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Disability Insurance

  • HSA Account

  • Flex Account

Whatever type of insurance you use or need, make sure to send the payment directly to them from you paychecks.

Talk to your HR department if they are not being automatically paid.

No thinking about it, no worrying about it being paid.

You see the pattern? 

So far, your income is automated in to your checking account. Your insurance payments are automated and we’re just getting started!

Automate Your Investments / Retirement Savings

Your employer probably has a retirement account option like a 401k. Hopefully your enrolled in it if they do.

Most employees automatically deduct a contribution to your 401k from your paycheck and may even contribute some for you.

If you’re not automatically depositing in your companies retirement account you need to.

Automation is what makes investing work. By not having to think about it, you’ll be investing automatically without the stress of forgetting or worrying about the money.

You may also have a IRA. You probably can’t get your IRA through you company so you will have to have this automatically withdrawn from your checking account.

Contact your IRA provider or just login to the online site for your IRA and setup an automatic transfer to your IRA from your bank account.

Scheduling this takes all of the willpower issues out of the equation and makes savings for your retirement effortless. 

This alone will help you build wealth without thinking about it while doing whatever you love!

Automate Your Emergency Fund

An emergency fund is critical to make your money work for you. The idea is that you create a separate fund at your bank or with an app that allows you to aside money in the case of an emergency.

Instead of reaching for a credit card, you can use your own money in those situations where you have an unexpected expense that you just don’t have enough money for.

A good starting point to shoot for is $1,000.

Create a separate account that you can easily transfer money from and to your checking account.

Setup an automatic transfer on a weekly or monthly schedule to your emergency fund ideally around the time of your paycheck deposit so that you don’t even realize the money is gone.

Once it’s setup, you don’t have to worry about it and the next time you have an unexpected expense you’ll have a nice chunk of money sitting there waiting for you!

(There are also apps out there that can do this for you as well like Digit and Acorns)

Automate Your Bills

Automating your bills is going to make a huge change in your life. Bills are painful to deal with.

Mentally, you’re watching all of you hard earned money go out the door. It’s just plain stressful.

It takes time away from you that you could be doing something else.

Thankfully, it doesn’t have to be this way. You can automate your bills and hardly even have to think about them.

Here’s my favorite technique for automating my bills so that I don’t even miss the money and it allows me to spend only about 15 minutes a month working on my bills.

List out all of your bills and how much they are on average.

Assign each bill to a paycheck. Try to distribute the bills evenly so that you have remaining money from your paycheck after each bill is paid.

To give you an example, here is how I pay my bills monthly:

I get 2 paychecks per month. I assign 2 bills to 1 paycheck and 3 bills to other paycheck.

As soon as that paycheck hits my bank account, the assigned bills are scheduled to be paid from my bank account immediately through my banks scheduled payments feature.

The money comes out as soon as I get paid so that I never even miss the money and I don’t have to stress out about paying the bills and watching that money go out.

I no longer have to worry about my bills. I just do a quick checkup every month to make sure everything is working as intended.

It’s that easy.

Note: This is where you can automate your debt as well. You can assign your debt payments just like bills to your paychecks and automate the scheduled payments. It’s the perfect way to get out of debt.

Automate Your Financial Goals

You should have financial goals. It could be as simple as saving for a home down payment or it could be something as cool as a trip to Hawaii.

No matter what your financial goals are, the easiest way to achieve them is to automate the process towards your goal.

So, you’re going to have to figure out what your financial goals are for the next 1 - 3 years and list them out.

Once you’ve listed out your goals, decided when you want to achieve them by. Maybe you want to go to Las Vegas in 1 year. No problem, figure out how much the trip would cost and then divide that number by 12. (12 months in a year)

Here is an example:

Let’s say I want to go to Las Vegas in a year. I think the total cost of hotel, airfare, food, Uber, etc will be about $2,000.

To reach this goal in a year I divide 2,000 / 12 = $167 per month.

So now I know I need to setup an automatic transfer in my bank to a savings account for $167 every month on the 15th for example.

You could even make it even smaller amounts if that works better for you. For example, you could divide $167 by 4 and that would be $42 per week.

There is also apps like Digit that can help you save towards your goal if you can’t do it with your bank.

As long as it’s automated and you don’t even have to think about it, it will be SO MUCH EASIER!

Automate those goals and your chance of reaching your financial goals will be so much better.

Automate Your Budget

A budget allows you to track how much money is coming into your bank account and how much you can spend on different things like entertainment, rent, mortgage, electricity, etc.

Starting out with pen and paper is a great start, but once you’ve got it mastered, automation is the next step.

The easiest way I’ve found to automate your budget right now is with an app called Clarity Money. (Your bank may also provide this as well in it’s online or mobile app. My bank called Simple provides this.)

Clarity connects to your bank account and automatically tracks your income, categorizes your expenses, and tells you how much you are safe to spend.

Budgeting is hard to automate, but Clarity will get you very close.

Lately, I’ve been using my bank, Simple, to automate all of my expenses by creating categories for each and Simple automatically sets aside the money for each of those expenses in special groups. It’s really cool.

Finally, another option is YNAB (You Need A Budget). You can’t fully automate your budget with YNAB but you can create your budget and then it will automatically import you transactions into your expense categories.

Which one is right for you is a matter of preference. Take a look at each of these tools and see which one is best for you.

Automating Your Money Organizer and Net Worth

Tracking your money and net worth can be done with paper and pen, but again, once you’ve mastered the process, it’s time to automate it.

I have 2 tool recommendations that are great for this. The first one is Mint.

Mint has been around forever. It’s a great tool to automatically track all of your financial accounts in one place. It also tracks your net worth from all of your accounts.

It even goes to the depth of pulling your current vehicle values and even home value.

It’s been around forever and it’s a great tool.

Another option is Personal Capital. Personal Capital is newer than Mint, but it has pretty much the same feature set.

I like that Personal Capital has a cleaner and more modern look. In addition it seems like it has less ads in your face all of the time.

You can’t go wrong with either though. They will pull in all of your financial accounts, assets, debts, and even track your net worth.

This gives you a real time picture of your finances at any time. You can’t beat it.

Create a Financial Habits Checklist to Keep Your Automation on Track

Lastly, money automation is never 100% automated. You have to keep an eye on your money to make sure everything is running smoothly.

Create a checklist to review your automated systems once a month to make sure everything is working as you intended.

You may not be able to get your money 100% automated, but 90% is way better than 0%.

Automate Your Money

Pretty much everything about your money can be automated and the more you automate your money, the better it will work for you.

Imagine a personal assistant handling your finances for you. That is what money automation does for you.

No more thinking about your money constantly, worrying about it, or wasting time managing it, when it could all be automated.

Automate your money today and find out just how easy managing your money can be!

ACTION STEPS:

  • Automate Your Direct Deposits

  • Automate Your Insurance Payments

  • Automate Your Retirement Savings

  • Automate Your Emergency Fund

  • Automate Your Bills

  • Automate Your Financial Goals

  • Automate Your Budget

  • Automate Your Money Organizer and Net Worth

  • Create a Financial Habits Checklist to Keep Your Automation on Track


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DAVID SHEPHERD

CREATOR OF LET'S AUTOMATE YOUR MONEY WITH MY LOVELY WIFE KRISTA


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