Automate Your Personal Finances

Managing your personal finances can either be a nightmare or it can be empowering. In order for you to free your self of worry and stress over your finances you need to put everything on autopilot, here's how...

1. Sign up to have your paycheck direct deposited with your employer. All you have to do is give your boss or your hr rep your bank routing number and checking account number (Don't use your savings account to receive your paycheck direct deposits). Now your paycheck will go straight into your checking account on your payday, no more going to the bank and standing in line to deposit your paycheck. This will save you time and money now that you don't have to drive to your bank. Oh!, and by doing this you will most likely get your monthly maintenance fee on your checking account waived.

2. Enroll in online banking through your bank. Once you are able to log into your banks website and view your accounts you need to enroll in their Bill Pay. This is where you can pay your bills from your checking account to anyone. If your bank does not offer Free Bill Pay, you need to switch banks, almost all the major banks offer this convenience for their customers now. Take the 20 minutes to sit down at your computer and add all of your creditors to your Bill Pay. This can be your landlord, auto loan, student loans, credit cards, cable/satellite provider, auto insurance, dentist, medical doctor, even you uncle who loaned you some money. You bank will send out the electronic payments or checks on the dates you choose. After sending the payments manually yourself by logging in once or twice per month to send the payments, set up these payments to go out automatically.

3. Start saving automatically(paying yourself). Most of us are terrible about saving money, so the simplest way to ensure that you are paying yourself is to sign up for a program that saves your money for you without you having to do anything. The first of two things you should do is to have a portion of your paycheck put into a 401k, most employers have their own and will even match your contributions up to a certain percentage. Do this! It's like getting a raise from your boss for doing nothing. The second way is to sign up for an online savings account and have the money come directing out of your checking account automatically. Don't use a brick and mortar bank to save your money in, they typically pay 10 times less than online savings accounts AND the money in the online account is out of sight out of mind, so it's easier for you not to spend it.

4. Start investing automatically! A lot of us think that investing is complicated and you need a lot of money to invest, WRONG. Just like the online savings account you opened, you will want to sign up for an online investment account that has no minimums and no fees. Have the account take a little bit of money out of your checking account each month and auto invest it in an IRA(Individual retirement Account). With this account you can now invest in low cost Index Funds that mimic the stock market so your investment returns will stay on par with the market. This isn't your get rich quick win all or lose all day trade account. This account is going to grow slowly over time and give you piece of mind.

If you do these four simple steps you will be well on your way to becoming apart of the New Rich and empowering yourself to have a solid personal financial system in place. Now you have freed yourself up from all of the time consuming old ways of personal finance and you can focus on what's important to you, your life!