The best financial plan is one you don't have to think about. Automation removes willpower from the equation.
"I used to forget to pay bills all the time. Late fees were eating me alive. Once I automated everything, I stopped thinking about money and my jumped 80 points."
The Automation Stack
Set these up in order:
1. Direct Deposit (Day 1)
Your paycheck automatically lands in your checking account.
2. Bill Pay (Day 2-5)
Schedule all recurring bills right after payday:
- Rent/
- Utilities
- Phone
- Insurance
- on debts
3. Savings Transfer (Day 2-5)
Automatic transfer to your or .
4. Investment Contributions (Day 2-5)
401k from your paycheck + IRA auto-contributions.
Pro Tip
Schedule everything for right after payday. You can't spend what you don't see.
What to Automate
| Automate | Don't Automate |
|---|---|
| Fixed bills (rent, insurance) | Credit cards (review first) |
| Savings transfers | Variable bills (check amounts) |
| Retirement contributions | One-time purchases |
| Subscriptions you actually use |
The "Pay Yourself First" System
Do This
- Calculate your monthly savings goal
- Set up automatic transfer for the day after payday
- Budget and spend what's left
- Never touch the savings
This flips the script. Instead of saving what's left after spending, you spend what's left after saving.
Avoiding Automation Pitfalls
Watch Out
Automation only works if you have enough money in your account. Overdraft fees can cancel out your savings.
Build a buffer:
- Keep $500-1000 extra in checking
- Stagger due dates if needed (call and ask to move them)
- Set up low balance alerts
Getting Started
Quick Win
This week: Automate ONE thing. Pick your most important bill or savings goal. Set it up today. Add more next week.