You can budget your money without pencil, paper, calculator or aspirin. Here are four pain-free ways to manage your money. Save yourself the headache and automate your budget.Pay Yourself First- Have your human resource department directly deposit at least 10% of your income into a savings account. Online savings accounts are better because they offer higher interest rates.Or, you can set up monthly withdrawals from your checking account to a savings account.
Auto Invest- Most mutual funds and brokerages offer Dollar Cost Averaging (DCA) programs. DCAs allow you to commit a certain amount of money each month to invest with. You can connect a DCA to your bank account or debit/credit card.
Bill Pay- Most banks offer this feature as a courtesy to customers that check their balances online. Use this feature to auto-pay your fixed rate bills i.e.(school loans, cell phones, insurance etc.) You can schedule them at a convenient time before the due date. That way you save a stamp and forget about it.
The Rest- You can also automatically prioritize your money for other interests like vacations, anniversaries and other commitments. After taking care of your responsibilities and priorities now you can enjoy the rest of your money. Because, you've automatically saved, invested, set money aside for priorities and paid your bills.
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1 comment:
It is more recommended to save at least 20% of your income instead of 10%. People will be surprised that they can really live with 80% for their expenses if they know how to budget wisely.
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