1. Make the most of your savings.
Have a separate savings account where the money is automatically transferred from your paycheck every month. Choose a high-yield savings account to earn interest faster compared to a traditional savings account. Your money will be sitting there at the bank so you might as well take full advantage of time and earn as much interest as possible.
2. Maintain your funds.
The best part about automation is that you do not have to think about your bills. Just make sure your account has enough funds to cover everything! A good trick is to have a cushion – at least three month’s worth of funds stashed into the account to take care of your monthly bills, payments, and investments. Always keep a buffer. You do not want to waste money paying overdraft fees.
3. Review transactions monthly.
Check your statements for accuracy. Look for errors or unrecognizable charges. In case a transaction sticks out, go over your history to verify. You can also call your bank to report it.
4. Keep your cards active.
Even if your money is automatic, it is smart to check in every now and again. Do you have any expiring debit or credit card? Stay on top of them to avoid missing payments.
5. Check for discounts.
Many providers offer substantial discounts when you automate payments. Plenty of insurance companies do this, as well as other annual subscriptions. Do your research or call to enjoy lower payments!
6. Simplify your portfolio.
Do not just automate your investments. Be sure to simplify your portfolio, too. A good example is having a target-date fund of stocks and bonds that are exposed to both US and non-US equities. As you reach retirement age, this fund will automatically rebalance your stocks and bond positions, making life easy for you and ensuring you get the most value for your money.
For more information visit: 6 Best Tips to Automate Your Money