How Do I Automate My Bills?
Automating your bills is the key to keeping your financial life happy, healthy, and most importantly, debt-free. However, when it comes to automating, many don't know where to start or what it even means. Here are our 4 tips for automating your expenses:
1. Have a Designated Bank Account
Automating your bills starts with having enough money to cover them. When you "automate" you put your bills on auto-pay allowing a company to pull funds directly from your credit card or debit account instead of you sending them money to them each month. The key to ensuring enough money is available each month is having a designated bank account just for bills. Many banks offer hassle-free accounts that allow you to empty it out every month and start over again the next month. This allows you to plan for your bills instead of receiving an alert that you may not have enough money to pay it off.
2. Automate When You Open
When you move, change jobs, or start a new expense, you always think you will get around to automating it later. That rarely happens and leaves you with a pesky bill you may have forgotten about every month. Instead, make automating your bills a priority and do it as soon as you open it. This will give you ease of mind that you aren't missing a bill you haven't planned for.
3. Go Paperless
After you automate, go paperless. Instead of receiving mail updates you will instead receive updates about your billing, amount due, and other features to your email address. So, if you have an overdraft or owe an additional or unforeseen amount you will be notified immediately.
4. Get Debt-Free
The only true way to automate your bills is to be debt-free. It is extremely hard to pay all of your bills in a month if you are in debt. Running at a deficit each month has you cherry picking what bills you will and won't pay. To fully eliminate the stress of debt, try paying down your smallest debt first until you can automate all your bills.