The opinions expressed by Entrepreneur contributors are their own.
Staying on top of your personal finances is never easy. Tracking all the money that passes through your account every month means you need to carefully monitor all your spending and stick to a set budget.
The point is, tracking your finances and knowing how your money is being managed shouldn’t feel like work. Manage your finances more efficiently with colorful automation tools so you never forget to make a payment or spend more than you have.
Financial automation is an important part of learning how to overcome uncertainty about how to manage your money and become more confident in how you spend, transact, and save money each month.
Related: How setting clear financial goals can transform your business and personal success
take inventory of expenses
Before automating your finances, start by listing all your monthly expenses and their payment dates. Be sure to include all recurring bills and expenses, such as rent, utilities, insurance, mortgages, and other important payments.
Some of these payments may already be set up to be debited from your account each month. In that case, be sure to check the deadline for each payment and debit it from your account.
If the payment date falls on a weekend or holiday, remember to consider when the payment will be made and how certain payments will be deducted.
know your account
Now that you know your spending, it’s time to learn how to use your bank account more effectively. If you have multiple bank accounts or credit cards, be sure to organize the most important bills that are debited from the account you receive your paycheck from.
Next, understand how to use each account. For example, your main checking account should be dedicated to paying important bills like rent, utilities, and insurance. A second checking account should be dedicated to regular expenses and less important bills.
With more control over each account, you can assign automatic payments to each invoice. This will help you know when you have enough money in each account and give you a more accurate picture of your monthly expenses.
Automate your savings
Saving money shouldn’t take a backseat when automating all your expenses. Instead, consider how you can set up an automatic savings account linked to your checking account. This allows you to set the date and amount you want to have your paycheck deducted and have it deposited directly into your savings account. As reported in Bankrate’s 2024 Emergency Savings Report, you can feel more secure knowing your emergency fund is taken care of without you having to do it yourself.
Related: How to save money: 10 tips to increase your savings
Use your banking app
Using your banking app, you can quickly set up automatic deposits without having to go to a bank branch. Some banking apps come with a host of personal finance features, such as budgeting tools, spending and portfolio tracking tools, loan calculators, and many other useful resources.
Banking apps also help you keep track of your account balances and various payments. For example, banking apps can help categorize specific payments and assign accounts to each. You can review past payments and place a hold on your account if necessary.
Each bank has a different app that they want their customers to use. Learn how to navigate banking apps and the tools designed to reduce the complexity of managing your finances.
Set a reminder
You probably have dozens of payments each month, but in order to stay on top of each one, you need to constantly remind yourself when they are due. Instead of writing this down in your calendar or diary, see if you can use your banking app to set automatic reminders. Include important payment information and the purpose of each payment.
For example, payments for things like subscription services can be made monthly, quarterly, or annually, so you need to remember when they are due. In fact, research from ExpressVPN shows that while 66% of consumers pay monthly subscription fees, only 10% pay annually or make large one-time payments, leading to so-called subscription fatigue. may cause.
Some of your bills may be shared with someone, or they may have inherited it from you in recent years, or vice versa. Each situation is different, but try to incorporate methods that will help you get more information.
Use budgeting tools
Have you found your monthly paycheck stretched to the limit? Instead of thinking about where and how all your money is being spent, learn how digital budgeting tools can automate your spending habits. Let’s see if we can do it.
Some banking apps may already have budgeting tools functionality, or you may need to use a third-party app. Whichever you use, automating your budget will show you exactly how your money is spent each month and how to make smart spending decisions based on your financial situation.
Related: You won’t have a strong budget unless you follow these 5 tips
finish thinking
Technology allows you to manage your money and accounts automatically. Learning how to automate certain accounts and payments, and being able to take advantage of the tools available to you, will help you feel more financially confident and ensure you keep track of all your bills.