Automation is your friend!
Running on autopilot can be uncomfortable, even scary - ever find yourself at work and not really remember the drive? Well, when it comes to finances, you can use it to your advantage!!
Think to yourself: How would this look if it were easy?
All the bills would be paid on time, no late fees; Savings rising, debt falling. Children’s education: paid. New dreams surfacing with plans for achieving them. Money would not be the reason for stress.
The first step to achieving all this is to set your paycheque on auto pilot. If you have completed the Debt Annihilation Bootcamp, refer to your list of annoying debts and amazing dreams. Add to these your bills and write down due dates and totals - are they monthly, every other month, annual? Are they set or do they change every month?
Set up automatic payments for the next payday - you can add extras, but this commitment to debt freedom will also help you tame your spending, as your bills will be paid before you wake up on payday and you will have a clear picture of your available spending.
Starting with the regular bills (same amount every month or every other month), break it down by the number of paycheques you receive between bills and set your payment to pull the same amount every payday. $200 every other month and 4 paycheques to get there? $50 a pay and you can smile when the bill comes in, knowing you are covered. Always open and read the bill to ensure the payments are flowing and no change has occurred - and to enjoy the feeling of being paid up!!
Next come the irregular amounts: water bill, heating bill and credit cards for example. Go back a few months and estimate the bills. Set an amount per payday and in a month, check back to see how well you estimated. Adjust as required. This can also help you notice spikes in spending so you can get ahead of a potential spiral into debt.
For annual bills, you may need a separate account where each pay sends a portion of the money over so that it is there when you need it. This includes insurance, land taxes, license renewal, professional fees, life insurance…
Automation can change you life! By automating you can
Avoid late charges by always paying early
Build up your savings every payday, without forgetting
Pay off your debt by keeping on track
Stay on track for spending as you will know exactly how much you have after the bills are paid
Save time!
Put your money on automate so you can focus on the more important thigs: living your life!
A note to the entrepreneurs, real estate agents, mortgage brokers, coaches, finance advisers/advisors (though I truly hope you are using all your skills on your own lives and leading by example) and others whose income is not regular: you will need to figure out your annual expenses and manage that in chunks as invoices are paid. Automation will not work well for you as you do not know when the next deal will close. Live below your means to ensure financial security at all times. Invest in you, not in stuff.
Book a call with me to address individual needs: Contact — Mortgageless Mentor
