Why you NEED to Automate Your Finances
Market Meditations | March 18, 2021
Psychology is the cause of many of our failures in markets. Whether it’s taking a trade that goes against our proven system, impulse purchasing items or deviating from our financial plan. ❌
What we need to succeed is consistency.
Automation removes psychology from the equation and guarantees that you consistently stick to your financial plan. ✅
So what can you do to automate your finances?
- Enrol in your company’s pension plan. ? Other than the substantial tax efficiencies, automating your retirement saving allows you to be certain you can live comfortably in the future and take on more risk when you are younger.
- Ensure your regular income always gets paid into the same account. ? You will then be able to automate monthly payments to the rest of your financial system.
- Pay yourself first. ? Set up automatic and regular transfers of funds into your savings accounts or online investment platforms removing human error from the process.
- Set your credit card bills to auto-pilot ?. Set up a direct debit to pay off your full bill each month ensuring you never accidentally miss a repayment.
- Automate your investment strategies ? where possible. Whether you are purchasing regular amounts of Bitcoin or an index fund, many platforms allow automation. Use the tools available and your long term investing won’t be hindered by psychology.
The power of automation cannot be underestimated. Not only does it guarantee you stick to your plan but also saves you time on a monthly basis!
If you want more personal finance tips, check out our podcast ? 8 Tips To Achieve Financial Freedom.