Chris O'Shea
Budgeting is one of those things that gets harder over time. It’s kind of like dieting: It’s fun and exciting to make the right choices and to see the numbers on the scale start to move. But then life sets in. You start eating poorly and maybe skipping the gym. Likewise, once the initial buzz of budgeting wears off, you may forget to pay a bill or to pad the savings account. Suddenly your financial life is in disarray. One easy way to stop that from happening is to make as many of your money moves automatic.
Start With Your Financial Institution
Take a look at your bank or credit union’s automatic transfer and bill-paying options and figure out how to start using them. Next, consider which bills are typically the same amount each month, and use the auto-pay function to pay them in full. This move should be applied to your fixed bills — like Internet, car payments, etc. If you have lots of room in your budget, you can even set up auto payments for every bill, even ones that can fluctuate each month. Just set up an amount that you know will cover your minimums. Then go back in and adjust when the actual bill arrives.
Automate Your Emergency Fund
Next, you’ll want to set up an auto transfer into your emergency fund. Figure out a small amount you can pull from your pay and have it deposited into your savings account each pay period. Then, when the time comes to pull money from the fund, you don’t have to worry about building it back up again — the auto transfer is already doing that.
Pay Down Debt Automatically
Finally, if you have some debt, use your credit union or bank’s auto functions on that, too. Work out how much you can use to pay down your debt and automate the payment. It’s all too easy to bypass paying debt when things get tight, so make that decision beforehand. The more automated your financial life is, the more likely you are to stay on the right path.
