There has been much discussion in the blogging community about not “automating” your finances. Automating your finances usually means to do things electronically, such as direct deposit or automatic withdrawal.
I’m on the fence regarding this topic, but I have a few thoughts on the positive side . . .
First, automation does save time. There is no doubt that having something done by a computer can greatly reduce one’s effort, giving you more spare time to get other things done.
Second, automation can save money. If you don’t have to send a check by mail to pay a bill, you save on postage and the cost of the check itself.
Proponents of not automating your finances declare that it makes finance less personal, and more abstract. They claim that this results in you not knowing where your money is going. If things are done automatically for you, you may not get it drilled into your head that something is desperately wrong with your financial situation.
So, do you currently automate your finances? I challenge you to leave a comment below with your thoughts. I’d love to meet some of my readers and discuss this topic with you!
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{ 2 comments… read them below or add one }
I don’t automate…my wife does
But seriously, I would love to do so if I have the means to do so. I get my salary deposited directly into a payroll savings account. Automating my savings would require that I transfer a portion of that money into a separate savings account. The trouble is, my preferred savings bank is not my payroll bank, so doing so would entail some costs.
I have other options to automate, some of which I use, but they are not that easily accessible in case I need some money in the middle of the night due to some emergencies. So I only keep a small portion of my savings there.
As to the idea that automation makes financial planning less personal, nothing can be further from the truth. Would you rather do the legwork (or fingerwork, if on the Net) of making regular deposits or spend that time analyzing your financial condition on a regular basis?
I hear you. I especially understand the part where you said: “I have other options to automate, some of which I use, but they are not that easily accessible in case I need some money in the middle of the night due to some emergencies. So I only keep a small portion of my savings there.” There are some banks that I would just love to use online for my checking account, but it really doesn’t make sense to do the amount of literal paperwork I have to deal with on a day-to-day basis. Good thoughts!