Automating your Finances

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  They are automatically withdrawn from your account.  Once you have the bills and savings withdrawn, any extra money you have is “free” money that you can spend.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.

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6 Responses to “Automating your Finances”

  1. Granny says:

    I only have auto withdrawals for those items that are the same amount each month. If there is a variable in anything, like light bill, I pay it when it comes in through online bill pay.

  2. Thanks for visiting Shannon's Tales of Motherhood!
    I'm really trying to learn how to get all of my monthy bills in order to have a auto withdrawl and catch up on things. I read another post of yours and I learned alot of tips. I like reading your posts because your info is very good.
    Thanks

  3. Georgia says:

    We do a lot of automatic withdrawals because we were making some very bad choices with our money. These auto drafts were something that began to save us as we were in drowning in the mishandling of our finances. We had to make sure that we had the money for the phone bill, because AT&T was going to withdraw it. I still set up a budget amount, but I don't do auto drafts for items that could drastically change, like the light bill.

    • downswithdebt says:

      Thanks for the comment, Georgia. I want to start implementing the auto drafts, too, but I'd rather wait until I can do everything auto-draft. It's hard for me to keep track of what auto-drafts and what doesn't, and then I start to get confused. So I almost need an all-or-nothing approach.

  4. Christy says:

    It can keep you from getting late charges! That is my favorite thing about it.

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