Most people automate at least part of their finances — whether it’s by automating their cell phone bill or accepting direct deposit paychecks. But there’s a case for automating your full financial house. Here’s why:
1. Get Paid on Time
An American Payroll Association (APA) survey reveals a whopping 93% of workers receive their pay as a direct deposit. Automating payday means you don’t have to wait for your employer’s billing department to print checks. Instead, you receive your wages as soon as the clock strikes 12 on payday, with no need to collect or deposit checks.
2. Potentially Receive Loans Faster
Sometimes, you have to cover an unexpected expense, and your automatic payday is too far away. Your car breaks down, you get a speeding ticket, or your kids get sick enough to see a doctor. Without savings as a backup, you might have to borrow money to cover these emergencies.
If you need to borrow money, research your potential direct deposit loan options before you apply for anything. Direct deposit loans streamline the borrowing process, so you don’t have to apply in person or pick up cash checks.
Instead, you can apply online and receive your approved funds as a direct deposit just like your paycheck. In many cases, these loans arrive in your bank account as soon as the next business day, although some conditions may apply.
3. Never Miss a Bill
Unexpected expenses like a speeding tick or checkup fee are hard to predict. Your usual utility bills and rent, on the other hand, arrive like clockwork every month.
Despite their regularity, you can forget to send off these payments in time. Life happens, you get busy or an emergency distracts you from the normal, everyday stuff, and before you know it, you’re late and have to pay a fine.
Automating your regular bills is easy. All you have to do is set up your creditors as authorized payees. Once you have that in place, you can tell your bank how much money to send these businesses, and your bank will never miss a due.
4. Always Save on Time
Financial advisors recommend you treat your savings like a bill, paying it every month before you spend cash on non-essentials. It’s easier to commit to this healthy financial habit when you automate these contributions. Sending cash to your savings account at the top of the month ensures you always hit your targets — making it harder to steal savings and spend it on splurge items.
5. Monitor Accounts
Keeping a close watch on your bank statements, credit card bills, credit report, and investments is an important habit for your finances. It helps you stay informed of your earnings and spending, giving you a chance to make changes on the fly. Monitoring will also help you spot discrepancies, errors, and signs of fraud as soon as possible.
Unfortunately, this financial task can be time intensive and boring. Busy people can choose to automate these chores with their preferred financial institution. You can set up threshold alerts, overlimit notifications, and account activity texts. You can also enroll in automatic credit monitoring services.
Automating common money tasks cuts down on the time you have to spend looking after your finances. But more importantly, it can help you save money if you never miss bills and catch fraud as soon as possible. Consider this as you enroll in automated services with banks, online direct lenders, and creditors.