Financial Automation To Reach Your Goals

Automation. It is really quite the buzz word these days. It seems it will either eliminate jobs or be the key to our next phase of economic success. That of course is not the focus of our conversation today.

Automation here means creating rituals that lead you directly toward your financial goals.

A little effort today will help enrich your tomorrow without adding the stress that comes with financial planning. It starts with you picking targets and finding a way to reinforce them mechanically.

Done correctly, you will barely notice the change.

No matter what stage of financial health you find yourself in, setting goals is part of the healing process. Jeremiah 29:11 says, “For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future”; Finding automatic ways to support your financial life takes you one step closer to God’s plan.

Automatic Bill Payment, Combined With Common Sense

Today’s high tech world puts automation at most people’s fingertips. First, automate bill paying as much as possible. This removes the temptation to delay a payment and eliminates the risk that you will forget to pay something.

When you do this, don’t forget to be mindful. It is easy to say, “take the minimum payment each month”, but that can be a trap that leads to troublesome debt. Automate, but remain aware. Review your balances each month. Tools like YNAB or Mint can help keep you in the loop even when you’ve put your accounts on auto-pilot.

For folks on our Christian debt relief program, we absolutely encourage automatic payments toward their program. Years of experience shows that a well-defined monthly payment that comes at the same expected time each month is more sustainable and successful than an intermittent “pay as you go” approach.

Don’t Forget to Save for the Future

Most financial counselors encourage clients to find a way to save money even as they rebuild their credit. Maybe you can’t save large sums of money, but you can find ways to put a little aside from each paycheck with automation. Your employer should allow you to allocate your direct deposit into more than one account. Consider having a small amount sent to savings to bolster your emergency fund.

Already have an emergency fund in place? Then that same concept applies for your retirement as well. Many employers offer pretax savings deductions, for example. If yours does not have a plan in place, ask about setting one up, or consider an IRA.

Banks offer automatic transfers for all types of saving plans, too. Get ready for Christmas or vacation with a Holiday Club or save for retirement with scheduled money transfers to an IRA or money market account, to name a few.

Automate your Lifestyle

Automation isn’t limited to electronic transfers. Changes you make at home will add up to savings. Set up a jar for coins and get in the habit of putting all your change in it at the end of the day. Start cutting coupons or use an app for things you buy regularly. This is something the whole family can do to save money at the grocery store.

Automation is a way of life these days. When it is well thought out, you can use that to your advantage simplify your finances, pay off debt and achieve your financial goals.