We live at a wonderful time, when you can bank from anywhere as long as you have your phone or laptop around. However, that does not mean we have to do something with our finances everyday. In fact, I prefer if everything is automated, and no need to do anything. Why? The less ad-hoc decisions you make around your finances the better off you are. Should I pay the full amount on this credit card this month or the minimum is sufficient? Do I put away a certain amount for my next car purchase, or there is no urgency there? How much can/should I invest this month? It’s easy to see that these questions does not make life easier. If you need to make decisions daily, you might not make the right ones or they might not be in synch with your long terms strategy or goals. Not to mention it does not help our daily stress level…

The best way to prevent that is to set everything on autopilot, which nowadays is not that complicated.

1. Pay yourself first. Decide how much you put away for long term investments (for Financial Freedom) and set it up that it gets taken from your paycheck right away and transferred into a brokerage account (ideally a tax-free account like TFSA). That will ensure steady growth in your Financial Freedom account, sheltering it from your day-to-day, sometime hectic life, and possible impulse spending, kind of a protection against yourself.
2. Investments. On the brokerage account set up an automatic investment plan into a low-cost index fund or ETF, so your monthly set amount gets to work for you without delay. Dollar-cost-averaging into the market is a wonderful thing; you invest a fixed amount regularly, reducing the impact of volatility by spreading out your purchase price over time. In other words, no worries if the stock market drops, just smile: you are buying great stuff ‘on sale’. Additional benefits include: consistency, i.e. ensures you invest regularly without having to remember to do so; and emotion-free investing, i.e. removes emotional decisions from investing, potentially leading to better long-term results.
3. Set up your credit card(s) for automatic, monthly ‘full balance’ payment from your checking account. Benefits include avoiding late fees, which in turn helps maintain good credit scores; and lowers stress level via reducing the mental load of remembering due dates.
4. Set up your charitable donations (to your church or favorite charity) from your account automatically, so you never need to worry about it, but you can feel proud every month when you review your bank statements.
5. Save Without Thinking: Set up your automatic transfers for an emergency fund and for your big-ticket item savings (new car, vacation, etc.) on separate saving accounts. They will just miraculously grow (via compound interest), and allows you to buy the item before you know it.
6. All utility, insurance and other bills also need to be setup for automatic deduction, so they just get get paid without you ever occurring any late payment or penalty.

Once all these transactions are on Autopilot, you can relax, as you can be certain your personal finances are on the right track. They don’t need a lot of attention, you are just effortlessly drifting towards your goals and dreams. No need for day-to-day decision making (that has a chance to knock you off-track) and as additional bonus, your credit history is also on autopilot for steady improvements for years to come. By setting these systems in place, you create a foundation for financial stability and growth with minimal ongoing effort. However, it’s crucial to periodically review your automation settings to ensure they align with your current financial goals and situation.