Monitoring your finances automatically
the next place. We can shave a lot of time is with check writing and paying bills now that we have apps like clarity money, true bill card life or mint dot com watching our backs there isn't a need or a reason to review our bill before paying it. Now if you're like me you may have started paying your bills all online years and years ago but I still know a number of people who spend an hour or more every single month writing checks, addressing envelopes, adding postage and mailing them out. Or even if they don't write paper checks after all, who does that anyways? They may have to log in and pay their bills manually once a month. What a waste of time. Sure. Maybe you automatically pay some of your bills but not others. Maybe you already pay your bills online but you're guilty of logging on every month or so to do the payments 1x1. Or maybe you automate all of your bill paying but you don't yet automate your investing. This is yet another area where computers are just more effective than...
humans. Computers don't forget dates, send payments in late or transpose any numbers. Computers know the exact amount and they don't have to look up the bill online for this reason I want to encourage you to pay as many bills as possible automatically. In fact, I would argue that unless you have some kind of weird payment. Almost every monthly bill or payment can be done automatically. Even checks to individuals can be automatically sent out by your bank. Usually at no charge. Of course you can set up automated wire transfers for things like that as well. Now another great benefit here is that if you pay bills with credit cards you have the added protection if you're unhappy with the service and of course you learn a lot of reward points depending on your credit card. I offer an entire other course on how to earn lots of miles and fly for free. But that's besides the point. Consider that most people have a renter, mortgage, check, an internet and a cell phone bill, a cable, tv bill, electric, gas, water, homeowners association and at least one credit card bill. Now imagine that each one of those takes a conservative five minutes to open the paper bill something I avoid like the plague check the amount, write a check at a stamp and seal the envelope. That's almost an hour of check writing that you do each month and that's with conservative estimates assuming your checkbook is handy and not buried away in a drawer somewhere that our would be much better spent with family, friends or doing that yoga class that you've been meaning to get to. This is not to mention any checks or payments that you receive which takes minutes of driving to the bank and back dealing with the A. T. M. And so on. Even if your bank does offer a service where you can take a picture of the check, You know how those apps work sometimes and you often have to fidget with your phone for 10 minutes before it actually accepts the damn picture. So the same principles apply here. Ask your employer or anyone who writes you a check to auto deposit it into your bank account Now. What about your investments? We all know that we should be putting aside a portion of our salaries for investments. Such as setting the money aside to buy a house or putting it into the stock market. We know that because of compound interest, even investing $100 a month from our salary can have massive impacts when it comes time for retirement. But how often do we actually do it? Well like I said computers never forget. So why not automate this. Why not do as personal finance guru. Remit safety suggests and set your bank account to automatically transfer to a separate savings account for a home purchase. Or even set your brokerage account to automatically debit your checking account every single month. Reinvesting the funds into your portfolio. Doing so will not only have incredible positive financial impacts but it will also allow you to rest easy knowing that your nest egg is growing while you sleep. So take a good hard look at the time that you're spending writing checks, depositing checks, paying bills and transferring money around between your accounts and consider automating as much of it as possible. I promise that it is work. You will never miss doing.