Are your finances automated? This concept seems to be everywhere right now. The basic idea is that you set up auto-drafts for your savings and your bills so you don’t have to think about them each month. They are automatically withdrawn from your account. Once you have the bills and savings withdrawn, any extra money you have is “free” money that you can spend.
This sounds great to me in theory. I mean, no budgeting, no thinking – you just set everything up, and there it goes. But I don’t know if this is feasible for everyone. I guess some things would have to be taken care of before you could get to that point. For one thing, you’d have to make sure you could actually pay all of your bills each month before you could start having them auto-draft!
This is something I’m looking at as a possibility as we get our finances under control. What do you think?
This article has a lot more information about the concept of automating your finances.