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Week 2: Budgeting & Saving
Today’s Easy Financial Task: Begin to automate
How to Rock this Task :
- Automate transfers to your Savings Account(s) : Money Buckets
- Automate transfers to your Bills Account
- Automate your bill payments
By now you should already have a budget and multiple accounts. Today we automate!
Automation is the new discipline. By taking out the “flawed” human element, aka you, you’re more likely to stick to your budget. I've automated everything in my budget: bills, savings, investing, even giving to charity.
Begin by automating transfers to your Bills and Savings Accounts - Money Buckets. Then, automate your bill payments, to ensure you’re never late again (assuming you have the money available in your Bills Account). If you're afraid that you won't have the money available, I would still pay online, but do so manually.
I would not suggest that you allow companies in to take their payments. Instead, use your bank’s free, online bill-pay option and make your bill payments that way. The reason is, when you set up through the company, they have access to your money/accounts. When you do it through your bank, YOU tell YOUR money where to go and what to do......part of changing your money mindset is being able to control the movement of your money for yourself.
Did you know that you can even automate payments to small companies and individuals? If the bank can’t wire the money, they’ll simply cut a check and mail it.
Did you call your service providers & save money during yesterday's task (Day 11)? If yes, yay! Now it's time to make sure you actually save the money you negotiated for. Here's how:
1) List all of the service providers that agreed to lower your payments or offered discounts.
2) List the due dates of the recurring payments of the services providers that agreed to lower your payments or offered discounts.
3) Instead of paying the full amount to those service providers you've gotten a reduced rate from, pay the amount that you negotiated off, to one of your Money Buckets, debt or a past-due bill. Make these two payments on the same day you normally pay the service provider.
4) Automate both payments. Partial to the service provider, and partial to your Money Bucket, debt or past-due bill.
Example: You called your cable company like I taught you yesterday. Your bill was $200/month and you negotiated it down to $125/month. That's a savings of $75. Instead of reabsorbing the savings, you decide to be more purposeful with your money.
Your cable bill is due on the 10th of every month. Now you still pay $200/month on the 10th, but $125 goes to cable and $75 goes to a Money Bucket, debt or a past-due bill. You won't feel the difference because you're accustom to paying the full amount ($200) to your cable company. You automate both payments. You do a happy-dance and name your next child Budgetnista, after me. 🙂
One more thing before we go...
a.) I LOVE the app
b.) it's a super easy way to automate savings from your checking account.
Trust me, the small amounts saved every few days by this app add up. (Check out Digit savings success stories from members of the Dream Catcher group HERE.)
Quick recap of what the Digit app is all about:
- Digit is free for the first 100 days, then there’s a $2.99/month fee.
- It analyzes your income and spending habits to look for money you don't need.
- It transfers small amounts automatically from your checking account to your Digit savings account.
- Savings transfers are usually between $5 to $50.
- Digit won't transfer money if you can't afford it. No need to worry about overdraft.
- You can transfer money back to your checking account at any time.
- Every 3 months you receive a savings bonus from Digit, 5 cents for every $100.
Get Digit here: http://thebudgetnistablog.com/digit
Don't forget, Qapital is another FREE app to help you auto-save for what you want. Sign up via this link and get $5 after saving http://get.qapital.com/bzAc/hO6qCdMA6s.
No more excuses. You have all the tools you need to successfully budget your money and save - automatically. Now share your commitment to financial change and inspire someone else.Today I will automate my finances. Day 12 #LIVERICHERChallenge Click To Tweet
Make sure to check in with your accountability partners. Are they saving more? Have they opened up their accounts? Have they automated their expenses? Make sure to check-in down in the comments below. How do you feel about today's task?
Find me here:
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER
(If you're new to the Dream Catcher: LIVE RICHER group, go HERE first to answer a questionnaire before requesting to join.)
My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters I’m the most protective over her. Before I share any product or service with you, it must pass my Lisa Rule.
What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective over you and your financial journey.
The products/services mentioned in this post pass my Lisa Rule. Yes, I'm an affiliate, but I would not recommend a product or service that I didn’t believe was helpful and useful.
*** Have you just started the Challenge? Want to catch-up? Want to do the challenge again later? Want to work through the LIVE RICHER Challenge in a workbook as well? You can do it ALL with the LRC Book. Get it here NOW: LIVE RICHER Challenge Book ***