You’ve probably been there at least once in your life, receiving an email or a piece of paper in your mailbox marked “late notice”. The dread that sets in is virtually second to none, but one way to ensure you never miss a bill is by automating your finances. We’ve got a few tips to optimize your finance automation so you avoid missing that due date in the future.
Create Your Budget
It might seem like a no-brainer, but sitting down to budget your expenses will make a difference in the long run and directly affect your automation steps. When you understand what money comes in, where it needs to go, and how it affects your savings goals, you can better plan when to automate certain payments and when to transfer money between linked accounts via a mobile banking app.
Open the Right Accounts for the Right Expenses
Investment professionals aren’t the only ones who benefit from multiple accounts. By setting up multiple accounts, you have a better grasp of where you stand regarding how much you have in the bank to pay your bills, cushion your daily expenses, and save for that down payment on a car or vacation getaway.
Typically, opening 3 accounts will get the job done:
- Fixed expenses: open a checking account for this purpose and pay for monthly rent, utilities, loan repayment, etc.
- Variable expenses: open a separate checking account to pay for nights out at restaurants, a movie ticket, or a new pair of running shoes.
- Emergency fund: a savings account is great here for unexpected medical bills, accidents, or urgent home repairs.
Remove Temptation for Extra Spending
It’s no surprise when bills come up, especially fixed expenses like rent or mortgage payments, student loan repayment, and utilities. What can put your ability to pay those bills on time via automation is when your extra spending on a few too many nights out or an outfit that could wait until next season takes over. Finding ways to remove the temptation to spend on every single deal that comes your way is key to keeping your bill payments on-time and avoiding overdraft fees. A few ways to remove temptation include:
- Not saving your credit card information on online shopping sites
- Opting out of email deals and offers that come right to your inbox
- Turning off quick-order capabilities
- Not creating logins for shopping sites in the first place
Automation Is Simple With the Right Banking Partner
After budgeting, opening the right accounts with the correct transfers set up come payday, and removing the temptation to spend via online deals emails, you can sign up for automated payments on virtually all monthly bills and expenses without running the risk of overdrafts or bounced payments.
Additionally, automatic payments are a great way to ensure everything runs smoothly while your bank might be undergoing technical updates to its systems. At WEOKIE, we’re going to be updating our technology, and we invite you to check out our free checklist to see what to expect during the upgrade this Fall 2019. Download the checklist below.
*See a WEOKIE rep for details. Federally Insured by NCUA