Automating your personal finances is key to simplifying your finances. It is what I recommend to everyone. Automating makes things a lot easier as well as enables you to spend less time sorting your mail and paying your bills and more time doing the things you want to do. Yes automating your finances will change your life forever but you can not just automate and forget about your bills. Well you can but you may discover some additional charges several months later or worse you may end up having some services disconnected if you forget. I am not saying do not automate your finances but I am saying you want to put some checks and balances in place to monitor your finances to make sure everything is working as planned. Here are some things you want to put in place to make sure everything is working properly when you automate your personal finances.
REVIEW YOUR STATEMENTS – reviewing your monthly statement to make sure the bill payment was received on time and you did not incur any late fess. Also want to make sure the payment date you established for the payment to go out provides enough time so it is processed on time. Many times we just pay the bill since it automated without reviewing the bill. After its paid its to late to dispute but you can always try.
REVIEW PAYMENT WAS MADE – Check to see if the payment is sent out or if your credit cards was charged on the day that you designated. To do this set up an alert or set a date in your calendar to view if payment was done. One way to make it simple is to try to set all payments to be sent and charged to credit card on the same day or within a few days of each other if possible. This way you will only have to check once per month to make sure all payments were made.
CORRECT AMOUNT CHARGED – Not only do you want to make sure the payment was sent or charged, you also want to make sure the correct amount was paid. You would hate to underpay your bill and be charged interest or possible late fees.
Automation is key to simplifying your personal finances but supervision is even more important. So establish a checks and balances system to make sure all of your bills are paid as you have set up. This will save you time and give you a peace of mind knowing that your bills are paid and you only have to check to see that they were done once a month.