Managing your money can quickly turn into a full time job. Figuring out what your budget is, keeping track of your savings and making investments all take time out of your week. But while some of us relish the challenge of the task, most people really just want to get on with their lives!
This is where automation comes in. With more and more automated systems in place and available on the market, it only makes sense to automate as many areas of your personal finance as possible. This will give you more time to enjoy your money without having to worry about how it is working for you.
Automating Your Investments
One of the more difficult aspects of financial planning is where to make and manage your investments. While you could employ someone to manage your investments for you, the reality is that you can now use an automated trading system with much the same advantages.
It might feel weird to entrust an algorithm with your investments to begin with but there are a few advantages you may not realise. For a start, you can easily view the trading analytics that show the success of the model where you would simply have to trust an investor. Similarly, the performance reports are much more detailed with 70 metrics to consider should you wish. Investing might seem like an art form, but it is certainly not beyond an algorithm.
Automating Your Savings
While transferring money into savings is a lot easier than managing an investment portfolio, automation can make a real difference here too. Setting up a direct debit from your current account to your savings account each month will ensure that you build your savings regularly.
When the payment is automated, you are much more likely to get used to not having the money in your account and you won’t have the opportunity to feel conflicted about whether or not you should save it. Some employers are even willing to divide your paycheck between accounts, making it even easier to send money directly to savings.
Automating Your Payments
Just as you can take savings out of your hands, you can also take payments. Setting up direct debits is by far the easiest way to pay your bills as you don’t need to remember to do it so won’t risk fines. But you can take this ease one step further.
If you have a separate account for your bills, you could easily set up a direct debit to this account so that you can always pay. This will remove any temptation to spend more than you actually have and will ensure that all your bills are paid on time. Just make sure that there is always a bit of extra cash in this account as some bills may fluctuate in value.
Automation is changing the world and your finances can really benefit too. The more you can set up to run by itself, the more time you will have to enjoy your money and look for new ways to invest or save.