Why You Should Put Your Finances On Autopilot

    We are constantly faced with decisions on whether to spend or save: Buy a brown sugar milk tea from LiHO or settle for a teh C (milk tea) from the coffeeshop? Shop online or make time to review our budget? 

    As time passes, these seemingly inconsequential decisions add up in ways that can shape your financial health. It’s not always easy to stay committed to your money goals, but automating your finances could make follow-through easier.

    Hit your savings goal with automatic transfers

    Saving money can seem difficult, especially when it means putting off your wants and needs of today for the distant future. But putting money aside regularly is the foundation of wealth building. 

    To help you follow through on your saving goal, consider automating your savings. Decide on an amount you can commit to saving consistently and have it transferred automatically from your checking account to a separate savings account each time your paycheck comes in. 

    Do more for your money

    Automating this process means you don’t have to think about saving – making it much more unlikely you will “forget” to set aside money in your savings account after spending and paying bills. 

    Not planning to tap on your savings anytime soon? Consider parking them in a cash management account like Syfe Cash+. You’ll get to earn a projected return of 1.75% p.a. on your savings – far better than than the sub 1% most savings accounts offer. 

    Automate your investments

    With your savings on autopilot, the next important step is to set up automatic investing. Saving is important, but don’t forget that bank interest rates are at an all-time low. If you want to make the most of your money, you need to invest. 

    One strategy to get into the habit of regular investing is dollar cost averaging. The idea is that by consistently investing a fixed sum of money over a period, you end up buying more shares when prices are low and fewer shares when prices are high. Over the long term, the cost of all your investments purchased are averaged out.

    Because you are investing consistently regardless of market conditions, dollar cost averaging helps investors curb the tendency to time the market or give in to certain investing biases. 

    Combine a DCA strategy with automatic deposits

    The dollar cost averaging process can be easily automated as well when you invest with a digital wealth manager such as Syfe.

    Making automatic deposits into your Syfe account is as simple as setting up a recurring transfer from your checking or savings account with your bank. You decide how often you want to invest (weekly, monthly etc.), your investment amount, then confirm and submit your recurring transfer request to your bank. 

    There’s no lock-in period so you can amend or stop these automated transfers at any time.

    Never miss another bill payment 

    If you’ve automated your savings and investments, automating your bill payments is the next logical step. This ensures your utility bill, credit card payments etc will always be paid on time so you don’t incur costly late fees and interest charges. 

    Setting up GIRO payments to pay your bills is hassle-free, and since those bills will be paid automatically, you also free up your own time for other things that matter.

    Take willpower out of the equation

    Staying on track with your long-term financial goals requires a lot of willpower and effort. Automating your finances bypasses the stress and makes it easier to reach your goals.

    By taking some time to set up all your automated processes today, you are setting yourself up for future success: saving and investing more, spending less, and saving valuable time.