5 minutes by Valerie Mellema
Money is just one of those parts of adulting that never goes away. It truly makes the world go-'round, and this can work for you or against you. If your finances aren’t in order and your money isn’t working for you, you’ll always be living paycheck to paycheck and wondering why you never have extra cash when you’re working so hard. On the other hand, if you’ve got a good budget, stick to it, and the others in your house are on board, then you’ll be able to sit confidently in a space where you know you’re financially secure.
Autopay, the Most Common Financial Automation
Automation is the act of doing something on a routine, without even thinking about it. When it comes to your finances, the word you’re probably used to hearing is "autopay." People have good and bad experiences with autopay, but it does have some advantages. Autopay can take a lot of the pressure off of paying bills when you don’t have to think about each individual expense. Payments on autopay arrive on time thereby reducing any late fees or service interuptions.
However, autopay isn’t as great when you sign up for a subscription service and then forget about it. Autopay can therefore also hurt your finances if auto-renewals drain money out of your account without your intent. Make sure to keep close track of what you have that is scheduled on autopay, and when it will be deducted. While autopay can be a worry, simple tracking of autopaid bills with WellPaid is effortless and lets you enjoy the benefits without unexpected autorenewals.
Other Forms of Financial Automation
Paychecks from employers are also regularly automated. Direct deposit is a glorious innovation that allows you to get paid right away, without having to go pick up your check and then get to the bank before it closes (ten miles, uphill both ways, in the snow!). For employers the process is also typically automated, even if hourly wages need to be submitted into a payroll system.
Taxes are also typically automated throughout the year. Yes, there is certainly a quarterly or annual filing too, but during the bulk of the year, most employers deduct taxes directly from your paycheck without employees needing to think about it. If you’re self-employed, however, you pay your taxes manually, but you can arrange to pay a certain amount each quarter so that it isn’t all hit so hard once a year.
Auto-savings is growing as a way to help your savings account thrive without forgetting about it each month. If you wait to save money, only putting in what’s “leftover” at the end of each pay period, guess what? You’re likely to never have very much to put in there. On the flip side, if you automate your savings deposits whenever you get paid, you’ll look at what you have to spend without that money there. Your savings will grow without you having to even try!
Charges for overdrafts and debt are an automated system that is just waiting for you to slip up and throw your money away. Get your finances in order so that these automated deductions don’t make you want to pull your hair out every month.
Where More Automation Can Save You
If you’re self-employed, auto-savings can help you keep a nest egg aside for when it’s time to pay that huge tax chunk at the beginning of the year. It won’t feel like you’re making less money when it automatically gets pulled out. You have to pay those taxes anyway; it might as well hurt less if you’re not manually putting it away.
You can also automate a savings deposit for personal needs. If you’re saving for a car, a trip, or a medical procedure, set up an account where a certain amount of money goes toward that each month. Watch it grow and you’ll be there before you know it.
Auto-saving for upcoming bills makes things so much easier with one less thing to think about each month. But wait, you get paid on a different schedule than your bills? You and everyone else. Fortunately, WellPaid now lets you automatically set money aside to pay for recurring bills or taxes when you get paid. Set a percentage aside from any deposits over a threshold or on a schedule to make sure you autopay your taxes and savings first!
Automation can help you get paid, too! You can request automatic payments from renters or clients for what they owe you each week, month, or time of service. No one likes to talk about money, so set it up so that it happens automatically. WellPaid lets lanlords even request tenants to automatically pay for utility bills charged to the unit. Its like autopay for getting paid back.
You can even use WellPaid to pay roommates back for house bills or to split costs for charges automatically between people.
Top-ups and sweeps are another fun way to stay financially secure. When you want to keep peace of mind by always having a minimum balance in an account, you keep it topped up when it goes below a certain threshold. Or, you set up your accounts to sweep any excess cash each month into your chosen savings or profit accounts. Remember, you want your money to work for you. WellPaid helps you do that.
WellPaid is launching routines for sending money between your accounts automatically. Keep up with us, and you’ll be among the first who is using this program to keep your finances and your life on track!
This program lets you set up schedules with others for rent, loans, or auto-splitting/requesting bills that are charged to you. Some of our recently launched programs are:
- Sending a percentage of deposits to savings or another account
- Topping up the balance on an account if it goes below a threshold
- Sweeping excess cash from one account to another
Let WellPaid help you live a well-balanced financial life.