Many times, managing personal finances can become too difficult, and here comes automation, like a hero, which is a powerful tool that simplifies your budget and facilitates instant online applications for personal loans. According to a recent study, 71% of people who use financial automation report reduced stress in managing their finances.
With automation, you can minimise the stress of controlling finances, avoid late fees, and even save without thinking about it. However, no research has been done concerning the mention of automation apps in this context, so it is essential to explore trusted and effective options for seamless financial management.
Automate Bill Payments to Avoid Late Fees
It is essential to pay your bills on time, but it’s easy to forget every month. Setting up automatic bill payments ensures that you never miss a due date, helping you avoid unnecessary late fees and penalties. Several apps can automate this process for you, making it hassle-free.
In India, PhonePe, Paytm, and Google Pay offer bill payment automation, allowing users to schedule payments for utilities, credit cards, and other bills effortlessly. For example, suppose you always have the following bills every month:
| Bill Type | Monthly Amount | Due Date | Automate Payment |
| Rent | Rs 15,000 | 1st of the month | Rs 15,000 |
| Utilities | Rs 4,000 | 5th of the month | Rs 4,000 |
| Credit Card Payments | Rs 5,000 | 10th of the month | Rs 5,000 |
All of these bills are paid on time, every time, without any risk of forgetting or missing payments-just by setting up automatic payments for all of them.
Automate Your Savings for Your Goals
Saving money is difficult because you have to remember to do it each month. That’s taken away with automation, such that money will be set aside regularly, no matter if it’s for an emergency fund, a vacation, or retirement.
Example:
Let’s say you wish to save Rs 10,000 monthly to serve various objectives:
| Savings Goal | Monthly Savings | Total in 6 Months | Total in 12 Months |
| Emergency Fund | Rs 5,000 | Rs 30,000 | Rs 60,000 |
| Vacation Fund | Rs 2,500 | Rs 15,000 | Rs 30,000 |
| Retirement Fund | Rs 2,500 | Rs 15,000 | Rs 30,000 |
By automating a transfer of ₹10,000 every month to your savings account, you’ll know exactly when the money is being deposited without thinking about it. This ensures consistent savings and helps you build your financial security over time, all without any effort on your part.
Set Up Auto-Investments
Saving for the future is the most important thing of all. Of course, it can be a bit intimidating to know where to start. Automation of investments can help you invest consistently without really giving it much thought; hence, you are building wealth over time.
Example:
| Investment Type | Monthly Investment | 6-Month Growth | 12 Month Growth |
| SIP – Nippon India Small Cap Fund | Rs 2,000 | Rs 14,000 | Rs 28,000 |
| SIP – ICICI Prudential Technology Fund | Rs 2,000 | Rs 15,000 | Rs 30,000 |
| Mutual Fund – HDFC Top 100 Fund | Rs 5,000 | Rs 30,000 | Rs 60,000 |
| Mutual Fund – Axis Bluechip Fund | Rs 5,000 | Rs 32,000 | Rs 65,000 |
Automating your SIP allows you to accumulate wealth systematically and reap compound interest faster. You can choose SIPs such as Nippon India Small Cap Fund and ICICI Prudential Technology Fund, or even mutual funds like HDFC Top 100 Fund and Axis Bluechip Fund to ensure a smooth inflow of investment coupled with good returns.
Automate Expense Tracking
Keeping track of your spending is really important if you want to manage your budget right. Doing it manually can be quite cumbersome and time-consuming. With automatic expense tracking apps, you can categorise and monitor all your spending without even lifting a finger.
Example: If you spend ₹30,000 a month, here’s how automation helps:
| Expense Category | Monthly Spending | Tracking Method | Automates Tracking? |
| Groceries | Rs 10,000 | Bank transaction logs | Yes |
| Dining Out | Rs 5,000 | Credit card statements | Yes |
| Transportation | Rs 3,000 | Expense tracking app | Yes |
| Entertainment | Rs 2,000 | Bank transaction logs | Yes |
| Subscriptions | Rs 3,000 | Monthly app sync | Yes |
| Miscellaneous | Rs 7,000 | Budgeting app | Yes |
You will also be able to have apps synchronise your bank accounts and credit cards, making it easy to categorise and track your expenses. This allows for real-time insight into where your money is going so you can adjust your budget accordingly.
Automate Debt Repayments to Keep Track
Debt can be stressful, but it is easier to manage by setting up automatic repayments. Missed payments and much higher interest rates are prevented. Automating the payment of loans and credit cards helps create relief and keeps your credit score intact.
Example:
| Debt Type | Monthly Payment | Interest Rate | Automated Repayment |
| Personal Loan | Rs 7,000 | 12% | Rs 7,000 |
| Credit Card Payment | Rs 5,000 | 15% | Rs 5,000 |
Your consistent debt clearing, as a result of automating the payments, would also reduce your interest burden and eventually free funds for other priorities.
Conclusion
Automation would help you simplify your financial life by removing repetitive and error-prone tasks. Be it in the automation of bill payments, savings, investments, or expense tracking, this is one powerful tool that helps you stay on top of your budget.
Ask yourself, what is one financial task I can automate today to make my life easier? You can then start to automate your finances a little and gain more control over your financial future.
Frequently Asked Questions
Q. How do I begin to automate my finances effectively?
First, prioritise bill payments and savings goals, and then investments and expense tracking.
Q. How much of my income should I automatically put towards savings?
Best to automatically save at least 20% of your income but scale up or down based on your specific goal.
Q. Can automation help with debt repayment?
Yes. Automation of debt payments can go a long way in ensuring timely payment and preventing interest payments as well as incurred late fees.
Q. Are there apps for automatic expense tracking?
Yes, there are several apps, Mint, YNAB, and PocketGuard, that automatically track expenses.
