Warren Buffet has been quoted as saying, “Don’t save what’s left after spending; spend what is left after saving.”
It’s all too easy to say you’ll start saving money after you get ahead on your bills. The problem with that approach is that day never seems to come. Money has a way of finding something to be spent on.
Solve this problem by automating your savings and bill payments. If you get paid every second Friday, set up an automatic transfer from your general account to your various savings accounts. You can easily do this online or by asking your bank to set up the transfers for you.
While you’re at it, set up automatic payments for as many bills as possible. Certainly do this for all your expenses that have consistent charges (such as a cable bill). For bills that vary through out the year, you can set up an automated payment for the average bill and then just make a minor adjustment each month.
Use a financial calendar to map out as many automatic payments and pre-planned transfers as you can throughout the year.
Taking advantage of automation to manage your savings first, and your bill payments second will make reaching your goals and sticking to your budget much easier.
