Set it and forget it could be your new financial philosophy once you embrace automation. Automating how you make money and spend money comes with a lot of advantages. Here are four of them below. Let’s learn about why automating your money make sense and be sure to read our tips to get your finances to get in control.
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#1: You Get Paid Faster
Waiting for payday is hard enough as it is. Why make it any more agonizing than it has to be by dealing with old-fashioned checks?
By upgrading your payment method to automatic deposit, your employer can transfer your paycheck directly to your bank account as soon as the clock strikes 12 on payday.
#2: You Can Get a Loan Online
Sometimes your paycheck won’t be enough — even when you receive it as an instant deposit. Unexpected expenses can show up and throw off your budget.
If you’re short of what you need, a loan can bail you out. Traditionally, getting a loan would require making a trip to the bank each time you want to apply, receive, and repay your funds.
Online loans provide a more convenient alternative to in-person borrowing.
By automating the underwriting process, an online financial institution like MoneyKey can accept and approve applications over their website.
If approved, they’ll deposit your funds into your account, and you can set up automatic withdrawals to ensure you pay back your loan on time. Check out to learn more about how these online loans work.
Automating your borrowing experience like this is easy, and it helps you address unexpected expenses faster. No more waiting around for bank hours and travelling all over the city. Instead, you can do it all online at the speed of your bandwidth.
#3: You Never Miss a Due Date Again
Automating your fixed bills can help you if you have a bad habit of forgetting due dates. But it’s also an excellent idea if you don’t want to waste time each month sitting down to pay your bills.
You can skip all that work and the late fines by letting your bank take over the schedule. Setting up auto-pay is easy. Here are the steps below:
- Assign authorized payees to allow your bank to move money from your account to your creditors
- Set how much money will go to these creditors
- Arrange the frequency of these payments (bi-weekly, bi-monthly, etc.)
#4: Helps You Meet Savings Targets
According to one financial standard, you should treat your savings account like it’s a bill. It’s something you should pay every month, without fail.
This is a version of the Pay Yourself First budgeting method, which ensures you never forget to contribute to your nest egg or retirement fund. And remembering is a whole lot easier when you make these contributions automatically.
With your bank in charge of these savings, you’ll be on track to hit your savings goals faster.
Can You Really Set it and Forget it?
Although there are plenty of advantages to automating your finances, this wouldn’t be Real Life if it didn’t also have some drawbacks.
Automation can trick you into never reviewing your accounts since you’ve got a computer managing your funds. If you spend too much in a month, you might overdraw when your bank tries to pay a bill.
Use Automation Carefully and You’ll Flourish
Ultimately, you have to choose the method that works best for you. But if you’re careful about reviewing your accounts and keeping track of your money, you can squeeze all the advantages out of automation without any of the downsides.