Managing personal finance could be a cumbersome task. It takes a lot of your time, especially if you are not very organized. You have to keep track of your expenses, pay your bills, home loans, car loans, life insurance etc. And if they are ignored even once, it could result in late fees, disrupted services, low credit score, and debts. While you can take personal loans, payday loans and even business loans from a licensed moneylender in Singapore, you should not use this option frequently. Try to be more disciplined with your money management. One way to achieve this goal is by automating your finances. It saves your time and almost compels you to be more organized about managing your finances. It is a kind of “Set it and forget it” strategy. All you need is to set up an automatic recurring debit from your bank account for loan repayment, paying utility bills, etc. Here are some major reasons to automate your finances.
Even the most organized person can occasionally forget to pay their bills in time. This could result in late fees, causing you monetary losses. If you forget to pay your monthly installment for any loan, the consequences could be even more serious. For instance, not paying your installments in time could put your assets at risk. However, the fact is, we are humans and we all make mistakes. But when it comes to finance management, human errors, however natural they are, could be costly. The only way to eliminate the likelihood of human errors is by automating your finances. Automation will help remove the-slip-off-the-mind factor once and for all. Saving money, paying bills on time all can be done in a more organized way by automating your finances.
You may come across situations where you’ll be tempted to spend money kept for a purpose on something not so important. Automating helps do away with such unnecessary expenses. The money will be debited from your account and transferred to another account automatically, giving you no chance to even think out using it for a different purpose.
When we automate our savings and bills, we will be left with a certain amount of money to meet your monthly expenses. Now we have to be economical in order to keep the budget in a right track; otherwise it will be shattered. If you want to purchase something, then you can delay it or find a cheaper way to obtain it.
Late fees, bounced check fees, and other unwanted expenses can take away your hard earned money at no time. When your finances are automated, these unwanted expenses will be reduced, which will help you save money. It also provides you a safety net, as the money you save could be used as an emergency fund and can deal with those unexpected expenses.
Time is money. The time that you spend on paying bills, managing the paper work, tracking the budget can now be used to do some other activities. For instance, you can start a side business, join cookery classes, provide home tuitions, etc.