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There's nothing more comforting than knowing that most of your financial decisions are taken care of.
I know the feeling, because my finances are on autopilot. (But they won't deflate, like the autopilot from Airplane!)
Every month, my major financial transactions are set to go themselves. I don't have to worry about paying most of my bills, saving for short-term needs or inve ting for retirement.
It's automatically set up to happen.
Here are 5 ways my finances are on autopilot.
- Direct Deposit
Every two weeks when my paycheck arrives, that money goes straight into my checking account. I don't have to worry about finding time to go to the ATM — my money is there and ready to be used. - Housing Fund Savings
Each month, money is automatically transferred from my checking account into a high-yield online savings account holding our housing fund. We treat it like any other bill, knowing that we can't spend that money. Since it's on autopilot, I don't have to worry about remembering to save. - Roth IRA Investments
On the first of the month, Vanguard automatically transfers money from our checking account and purchases index funds for our Roth IRAs. Since the investment occurs the same day every month, we don't have to worry about trying to time the market based on its ups and downs. Again, we treat this like a bill. - Automatic Bill Pay
Our cell phones, cable, Internet and telephone bills are automatically paid each month. We don't have to worry about late fees or bills getting stuck in the mail — the services are paid for and that's that. - 401(k) Contributions
10% of my salary gets chopped off the top of my paycheck and automatically deposited into my 401(k) — plus an additional 2% from my employer. Not only is the savings automatic, but because the contributions come first, my taxable income is lower — giving me more cash in hand.
Are you finances on autopilot? Let us know what you're doing in a comment below.
I have my paycheck direct deposited, my 401k withdrawals automatically debited from my paycheck and automatic savings withdrawals. I would rather pay my monthly bills myself because I do not like any of my billers helping themselves to my checking account.
[...] junger from Online Savings Blog presents 5 Ways My Finances Are on Autopilot. [...]
For practicality, financial autopilot would be good, but we need to remember trade off between our time spent with the cost of getting such autopilot services. Sometimes simply doing it with discipline can contribute most benefit.
J.C. Carvill
Email: support@cosmosing.com
URL: http://www.cosmosing.com/jeanclaudecarvill/index.php
"Automatic Bill Pay"
While this is a neat feature to use, it does have some problems. Like the other poster commented, sometimes companies try to take skim a few dollars here and there if yo don't watch the bills each month. They simply add new services sometimes like credit card companies adding a credit protection service. So its better to pay manually each month or if you do subscribe to auto billpay, make sure that you look the bills each month. My two cents !!
[...] finances are on autopilot — and it's been the best thing [...]
[...] of the biggest reasons you should put your finances on autopilot is for the sheer comfort of [...]