How Finance Process Automation Can Make Your Life Easier

Finance automation is an act of automating a certain finance task. Regarding finance structure, number isn’t just a number as humans is prone to temptation in many ways. If we can automate our finance, it can make our life much easier or even better. It does not require practice to have finance automation.

It just requires a little bit of your time and commitment to set it up. People are thinking about how they keep their money and balance it like online banks, retirement account, brokerage firms, and other plans that you people desire for long-term plans. You also need to put in the list the endless bills that we need to keep track of.

What is Finance Automation?

It is a process automation that uses software to automate finance-related tasks like journal entries and financial statements with minimal human intervention. It will enable your finances to process and ensure that it runs smoothly as possible.

Here are some list that you must have for finance automation tools.

Open an Account For Your Automated System

This is the first step in making an automated process by opening the right accounts. By having your primary checking accounts, you can monitor your money with cash coming in and cash going out on a predetermined schedule. The automation system is not perfect you must keep that in mind. For you to protect yourself from overdraft or a mismatch of timing for automatic bill payment and your paycheck, you need to have a cash cushion in your checking accounts.

To have the right cushion in savings accounts, you need to have at least 25% to 50% of one-month expenses as additional. If you have uncertainty of your monthly expenses, you need to keep a 100% margin on your cash cushion. You can also use the credit card as another account to earn rewards and cashback on your everyday spending like groceries, travel, dining, and more. You just need to be responsible on how to use a credit card as in can provide your finances with a boost from your automation.

Automate your Savings

After having a checking account that has a cushion and credit card that helps you in your daily expenses, you can now start the automation process by paying yourself first. After settling your paycheck and other payable accounts, you need to save some portion to your emergency funds and retirement savings.

Always save a little portion for yourself to avoid getting stuck in the dreaded paycheck to paycheck lifestyle. Savings for yourself and having an emergency fund is a must as you don’t know what will happen in the future. You can also use your savings if you want to travel, buy gadgets, and other specific financial goals you have without worrying about your payables every month.

Paying yourself is a reward for your hardship and also a form of self-respect. Don’t concentrate all your money on your payables, save some money and treat yourself as you also deserve it.

Automate Your Payments for Bills and Expenses

After setting up your automated system and savings, you need to focus now on your bills which includes your credit card, rents, and other payables accounts. You need to automate all your billing to avoid worrying if you already paid the bill or not. As today, you can always pay your bill virtually through online banking. You can also set a schedule for payment with minimal efforts every single month.

Since your having a cushion in your account, it can be effective to automate this way as you don’t have to worry about incurring overdraft fees as you already have a safety measure for this. You just need to monitor and always check your checking account.

Automate your Asset Allocation

After having the bills and saving to autopilot mode, you need to set up the automatic investing as this is the most important part of this process. You need to focus on having a greater percentage of stocks if you invest early in your career which is better to absorb market volatility. If you are now nearly your retirement, you need to increase the bond income portion of your investment portfolio.

Increase Your Automated Savings Over Time

This is the crucial part when automating your financial task, you need to find ways to increase your savings over time. Online investment is one way to increase your recurring contribution on an annual basis. You need to make a plan on how you commit to increasing your savings over time. If you have an automatic escalation, you will prevent creeping out that occurs with a growing salary. For additional information on automation, robots.net can provide you more information that you need.

Takeaway

Having automation system on your finances can make your life much easier as it can solve the crucial part of the financing task. As human beings, we are tempted to many things and we can’t even control our emotions. We need to put a safety measure in our finances and automation can help us in many ways.

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