How To Automate Your Finances

How To Automate Your Bill Payments

Gazelle is a new banking experience that puts you in control of your finances. You’ll enjoy feeless banking and 24/7 customer service from a team that will never push debt on you. And since it’s 100% online, monitoring automatic bill payments is a piece of cake. If you have inconsistent income, you can set reminders on your calendar to schedule transfers to savings when you know you’ll be making a deposit or receiving a confirmed payment. Automating your finances is a really great way to successfully stick to your budget and financial goals. If you tend to pay bills late or aren’t saving enough, automating your finances can help you better manage your money. If you’re new to the idea of pre-planning your finances, don’t worry.

How To Automate Your Bill Payments

In general, I prefer consolidating financial accounts to reduce redundancy. But sometimes, having secondary financial accounts can be a good idea. While adding more accounts can add a layer of complexity to your finances, having a backup account can actually save you time and money if something happens to your primary account. Some banks will allow you to manually create a bill pay recipient, and the bank will send a physical check to the recipient each month.

Option 2: Automatic Withdrawal

Instead, his vacation was ruined and he had to beg his bank to put enough money back into his checking account to afford gas to drive home. These problems could have been avoided if he had a backup account or a credit card for emergencies. I’ll share a basic overview of how we manage our finances, and share some tips to make it easier for you to automate your finances. Once implemented, these tips will help you save time and money, and reduce frustration and potential for mistakes like late or missed payments. Military members frequently travel for extended periods of time.

It will prevent any late payments that may happen and protect your credit from past-due marks. You can always pay more later, but setting autopay to the minimum “can act as a backstop in case you forget to make the payment,” Harrison says. If you’re looking for a simple way to improve your credit score, paying your credit card bills on time Cash Dividends and Stock Dividends can help get you there. Your payment history counts as 35% of your FICO score calculation, making it the biggest factor when it comes to achieving good credit. Transferring money between accounts, finding bills, paying bills, filing statements, and driving to the bank to deposit paychecks all steal precious time from our everyday lives.

How To Automate Your Bill Payments

You can also get a debit card, so you have immediate access to those funds if needed. You may want to check with your creditors first, though, to see if they offer an incentive that makes payments through them more attractive. For example, some creditors may offer a reduction in the amount of interest charged on a loan if payments are automated through the creditor. Between work demands, family commitments, and other claims for your time, it’s often hard to find a break in your daily schedule. By automating bill pay through online banking, you can gain time in your day — and maybe even better manage your money. You need to review your transactions at least once a month to check for errors, like double payments.

Create A Budget Based On The Balance You Get Paid

Many people do this to automate their savings or pay certain bills. This can be a good way to save money in your emergency fund, invest, save for your children’s college education, or any other reason you desire. The most important step is to make sure you and your spouse or significant other retained earnings balance sheet are on the same page. This ensures you don’t let anything slip through the cracks or make any double payments. My wife and I have joint checking and savings accounts, and I have her name on our business accounts. This gives both of us access to our finances so we are on the same page.

If I have more leftover money, I put that towards my savings account as well. I like having some of my finances kept on the manual side – so that I’m forced to stay on top of it every month.

How To Automate Your Bill Payments

It’s annoying to forget about a cell phone bill only to have it come due three days before payday. I wanted to get out of the cycle of always putting these expenses on a credit card. If they’re paid at the same time and right after a paycheck, I always have the money to pay them and I never forget about a rogue bill that’s due on the 27th of the month. According to your spending plan, you want to set aside $750 for retirement, $500 toward saving for a down payment on a house, and $350 to a vacation fund. You’d set up automatic transfers to happen for each of these, just as soon as you get your paycheck.

If you do this through your bank, your bills can be organized and viewed in one place. And some companies will email to let you know they are about to take a payment. You’ll have enough money in your account to handle those automatic payments. Spreading your payments out like that helps you balance your bills and day-to-day living expenses, so you’re less likely to run out of money at a given time of the month. Automatic bill payment is when you owe a company money for a service, and you agree to let them take that money out of your bank account at regular, preset times.

Or, include an email with every invoice you send out for the first few months letting clients know they can use automatic bill payment to simplify the billing process. PayPal can be the trick to setting up payments for bills including cell phones, Netflix or cable/internet – as these bills may only have one set payment date that you can’t change.

You Can Automatically Stick To Your Goals Each Month

You would want to get those cleaned up before you make that next purchase. Will simplify the purchase process if cash short and over cleaned up beforehand. Another great way to automate a budget is to use a financial aggregator like

, you can pay down many of your debts on a biweekly schedule to get out of debt faster and save on costly interest payments. You can monitor your progress on all your bills in one place, and that can make sticking to a budget easier. For bills that cannot be paid for with a credit card, maybe things like mortgage/rent or utilities, set these up to automatically be withdrawn from your bank account via ACH. First, where you can, set up every bill to be automatically charged to your credit card.

You’ll need a copy of a bill issued to you by a service provider so that you can copy the address and your account number, along with any other essential information, from the bill. Online bill pay is a digital banking bookkeeping or payment service that lets you pay bills over the web from a bank account—often at no extra cost. It can simplify your finances by eliminating the need to write out checks or count and distribute paper currency.

There are many benefits to automated bill pay using online banking, but three of the biggest are saving time, money, and keeping a close eye on your credit score, which can help improve it. There are many benefits to automated bill pay using online banking, but three of the biggest are saving time, money, and monitoring your credit score.

  • If an error happens, the bank must credit the customer account, but you need to inform the bank within 15 days of receiving the bank statement with the error on it.
  • So staying on top of your accounts and checking for errors is important, especially if you have a large number of automated payments pulling directly from your accounts.
  • Automating your credit card bill means scheduling a recurring payment that automatically withdraws the same amount from your bank account on the same day every month.
  • The National Automated Clearing House Association says that the error rate for bill payments that travel over their automated network is 38 per 100,000 bill payments.
  • You can choose a set amount each month (say, $250), or you can choose to pay the statement balance, current balance or minimum payment .
  • Using a credit card for automated billing also allows for variable bills that can’t be accounted for with bill pay.

The most important thing to remember is to continue tracking your finances. It saves time, money, and helps avoid missed payments and the resulting penalties and fees.

Always be sure you have enough money in your account to cover any payments you make online. To use this service, you will need to create an online account with your bank or service provider and provide your payment information. It’s a great way to save time, avoid late payments, penalties, and fees, and it’s a great way to make sure you pay yourself first – for savings, investments, or other goals.

To accept automatic payments you’ll need to let your clients know the service is available and you may want to offer incentives to encourage clients to try it out. Accepting recurring payments helps small businesses receive payment faster and improves cash flow. Synchrony Bank and Capital On 360 have great high-yield savings accounts you can set up online.

Learn To Automate Small Business Bookkeeping With Bill Com

You can alternatively set up automatic transfers with your bank into a savings account if you don’t want to do it via your employer or if your employer doesn’t offer this as an option. Before setting up to automate your finances, it’s best to set up direct deposit. If your employer offers direct deposit, this is the easiest and most convenient way to get paid. Your income is automatically deposited into your account, cash basis and you know exactly what days you will have access to your funds. You can also set up direct deposit to your savings and investment accounts via your employer. When setting this up, you’ll have to provide your bank with the account numbers and addresses of where you want the payments to go. Keep in mind you’ll need to allow enough time for your payments to get sent and received before the due dates.

What is the best bill pay service?

Best Online Bill Paying Software and ServicesPrism. You’ll never need to miss another bill again with Prism Money.
Quicken Bill Pay. You can use Quicken Bill Pay as a supplementary service to Quicken’s financial software, or use it on its own.

You’re now paying yourself automatically and paying many of your bills automatically. As we mentioned above, there are still expenses that we need to account for in our budget that are not a fixed amount every month or are not regularly occurring. Great consolidated list of resources and ways to simplify your finances. The last tip is a really good one to keep track of what you have automated. Reviewing your credit report is a good way to see what credit cards or credit accounts that are open which you may have forgotten about. Especially the ones you may have signed up for to receive 0% financing for a purchase. Also reviewing your credit report to make sure there are no errors on the report.

More Banking And Credit Card Content:

My favorite is You Need A Budget (Get a $6 discount through my link). Jordan and I have a money map that shows how money flows in from our paychecks and flows to different accounts and bills. See the main image at the top for our money map on automating our finances.

Is it better to pay all bills at once?

It can be frustrating to have to pay a fee, even if it’s relatively small, because you forgot or were late making a payment. Paying all bills on one day allows you to stay on top of every bill and avoid those pesky late fees.

This makes it easy to send a rent payment even if you are TDY two states over or deployed and serving halfway around the world. And since most of the banks process these payments and send them from the US, the processing time may only take a few days. However, not all landlords or apartment units are set up to handle digital payments. In this event, you can ask your landlord or management company if they are willing to set up a process where you can pay online.

This makes it essential to create systems for automating your finances. You’ll spend less time invoicing and more time attending to important business matters. Clients often prefer paying with automatic bill pay, because it allows them to set up a payment schedule once and then forget about it. Automatic payments give clients assurance their bills will be paid on time without having to make the payments themselves.

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