Let me ask you a simple question: how do you feel about money? It might seem like a straightforward query, but it’s one that holds a lot of weight, especially in the current climate. The reason I bring this up is that, for many of us, money is a significant source of stress right now. With the lingering effects of the pandemic, rising inflation, the escalating cost of living, and increasing interest rates, life has become more expensive than ever. As a result, money often triggers a strong emotional response—and that’s completely understandable.

If you haven’t already, I want to share an idea that could help you improve your relationship with money and reduce the emotional weight it carries. It’s a simple concept, but one that can make a huge difference in how you manage your finances. Ready for it?

One Word: Automation.

When it comes to handling your money effectively, one of the best strategies is to automate your financial processes as much as possible. While it’s still important to review and adjust your budget regularly, automating certain aspects of your finances can help you avoid the emotional burden of constant decision-making. It’s all about taking the emotion out of your day-to-day money management.

Why Automation Can Help You Feel Better About Money

Let’s be honest life is stressful enough right now. You’re likely thinking about your finances frequently, but you don’t want to be obsessing over every little decision. This is where automation comes in. By automating routine financial tasks, you can eliminate much of the anxiety and uncertainty that comes with managing money in a challenging economic environment.

For example, you might set up automatic transfers to your savings account on payday, ensuring that you’re consistently building your savings without having to think about it. You could also automate your bill payments to avoid late fees and the stress of missing deadlines. By doing so, you’re freeing up mental space and reducing the likelihood of emotional spending decisions.

How to Start Automating Your Finances

If you’re ready to start automating, here are a few steps to get you on the right track:

1. Automate Your Savings: One of the easiest ways to start is by setting up automatic transfers from your everyday account to your savings account. Choose an amount that aligns with your financial goals, whether it’s for an emergency fund, a holiday, or a home deposit. Make this transfer happen as soon as you get paid, so you’re prioritising savings before you have the chance to spend.
2. Automate Your Bill Payments: Set up automatic payments for your regular bills—such as utilities, insurance, and rent or mortgage. This ensures you never miss a due date and can avoid late fees or additional interest charges. Plus, it saves you the hassle of manually managing multiple payments each month.
3. Automate Your Investments: If you’re investing in the stock market, superannuation, or any other investment vehicle, consider automating your contributions. Regular contributions, even if they’re small, can have a compounding effect over time and can help you build wealth consistently.
4. Review Your Subscriptions: Review any recurring subscriptions you might have—such as streaming services, gym memberships, or meal delivery services. Automate only those you actively use and cancel the rest. This way, you ensure your money is only going towards services that add real value to your life.
5. Use Financial Apps: Consider using financial apps that allow you to set up automatic transfers, payments, or even spending alerts. These apps can provide a clear overview of where your money is going and help you stick to your financial goals.

The Benefits of Automating Your Money Management

By automating your finances, you can achieve several key benefits. First, you reduce the emotional impact of managing money, as you’re no longer making frequent, stressful decisions about your spending. This helps prevent the feeling of being overwhelmed by financial concerns and gives you more time and energy to focus on other areas of your life.

Second, automation helps you stay disciplined. When payments and savings transfers happen automatically, you’re less likely to skip them. This can help you build good financial habits that are critical for long-term financial success.

Finally, automating your finances can provide peace of mind. Knowing that your bills are paid, your savings are growing, and your investments are on track can help reduce anxiety and allow you to feel more confident about your financial future.

Take Control of Your Financial Well-Being

At the end of the day, the aim is to create a system where your money works for you, not the other way around. While you can’t always control the broader economic environment, you can control how you manage your finances. Automating your financial processes is a simple yet powerful step towards reducing stress and improving your overall financial well-being.

So, how do you feel about money now? With a little automation, hopefully a lot more in control and a lot less stressed.