Building Good Money Habits

Automate Finances

Building good money habits is easier when you automate finances. Automating accounts allows each one to communicate with the others to simplify your financial life. The easiest way to do this is to contact your employer and ask them to direct deposit your paychecks, and then contact your bank and ask them to link your checking, savings, and other accounts together. Some financial institutions allow customers to link accounts themselves by visiting their website and providing the appropriate information, though other banks need customers to call and ask them to help.

Once your accounts are linked, you want to begin using automatic bill pay and transfers. When money is automatically transferred to the correct accounts to pay the correct expenses, you have less to handle yourself, making it less likely to forget a payment or pay late. By transferring savings to your savings account automatically, you also never see that money in your checking account. Now you live by the adage you don’t miss what you never had.

Continue reading to learn how twenty percent is a great money habit.