Money & Business
- POSTED BY admin
- August 26, 2013
Automate your finances to focus on your long-term goals
Managing money is easier said than done. It is like cleaning your closet every week for the rest of your life. Wouldn’t it be nice to have an automated system that takes care of everything while you rest? Would you be surprised if I tell you there is such an automated system that never misses the deadline?
Do more with less time
Some people seem to have a magical ability to manage their money. They opened their RRSP and TFSAs years ago, and they seem to always know how much money they have and have more money to spend.
Why doesn’t the average person like to manage money? Because it is extremely boring and annoying — it is like watching a seed grow into a tree. The people who manage their money are not better than most average people. In fact, they spend less time thinking about money because they have set up an automated system that frees them from having to worry. These people don’t work harder; they work smarter.
Automate your finances
We also can become better at managing our money and have more time at our disposal when we have an automated system working for us. When you automate your system, when your paycheque arrives, each dollar will be directed to the right account without you even doing a thing.
The payoff for this automated system is huge since you can focus on the fun parts of your life. No more worrying whether you missed your bill payment deadline or if you are going into overdraft again. You can also automate your savings! In fact, by setting up an automated payment plan, you actually make it difficult to stop the contributions to your savings account!
Link your accounts
You have to start by linking your accounts together. Then you set up automatic transfers to happen on various days. Some of the links you can make include:
- Link your chequing account to your savings account, so your savings are topped up whenever you get paid by your employer.
- Connect your chequing account with your RRSP and TFSA.
- Connect your credit card accounts to your chequing account.
- Some bills like rent and mortgage payments cannot be paid by credit card, so link those with your chequing accounts.
Now that all the accounts are linked, make sure your payments or transfers are set up for the amount and date you want. This way, you can set it and forget worrying about missing bill payment deadlines.
Time saved is money saved
It takes a few hours to set up, but then you can manage your money automatically with less effort and less time. In the end, managing your money well improves your personal productivity system. You keep track of all your finances, which makes it easier to set savings goals and spend your time on more productive purposes.
This article first appeared HERE.