How to Automate Your Finances Presented by GreenPath

How would your life change?  You can end your money worries, feelings of overwhelm, and the frustration of sifting through the mountains of financial information. And you don't have to spend years studying compound interest charts or weeks trying to find the latest hot stocks to get there. All that's required of you is a willingness to think about money in a different way than you're probably used to.

What could be a barrier? There are a lot of broke finance professors out there. People who know the ins, outs, ups and downs of money, yet they're deeply in debt. How can that be? Because information alone is not enough. Especially when it comes to managing money, 80% (or more) of your long-term success comes down to your behavior around saving, spending and investing, The other 20% comes from knowing what to do. That's why I put this section in the front of this guide. If this is the only section of the guide you read, you'll be ahead of 99% of people.

Want to do this with GreenPath? Review Your Expenses Want to do this with GreenPath? 877-337-3399 There are a lot of broke finance professors out there. People who know the ins, outs, ups and downs of money, yet they're deeply in debt. How can that be? Because information alone is not enough. Especially when it comes to managing money, 80% (or more) of your long-term success comes down to your behavior around saving, spending and investing, The other 20% comes from knowing what to do. That's why I put this section in the front of this guide. If this is the only section of the guide you read, you'll be ahead of 99% of people.

1. Open Up Designated Accounts The first step of building an automated process is opening the right accounts. That starts with your primary checking account. That’s going to function like Grand Central Station for your money, with cash coming and going on a predetermined schedule. In order to prevent the automation system from biting you, you must have a cash cushion in your checking account to protect against overdrafts or surprises that result from a mismatch in the timing of automatic bill payments and your paycheck. Payments/Bills Savings Spending

Check with your Credit Union MECU offers several different accounts that could meet your needs. Having all of your accounts in one place allows you to have transparency as to where your money is going.

2. Automate Your Savings One of the accounts we asked you to open is a savings account. If you automatically deposit funds into your savings you are more likely to be successful when saving. If possible, set up your paycheck for direct deposit so you don’t need to worry about going to the bank every time you get paid. Some employers also give you the option of dividing your paycheck when making a direct deposit. If so, send a percentage of your paycheck to your savings account and the rest to your checking account to pay your normal expenses. Try to save the same percentage of your income every month (5%, 10%, or whatever you can afford). By paying yourself first, you lessen the risk of thinking you can’t afford it. Remember, out of sight, out of mind.

Commit to Saving More Are you getting a raise? You are currently living without that money. Sometimes when we get a raise we fall victim to lifestyle creep and we find another payment that we use our add’l money for. Instead of finding another payment why not automate those extra funds into a savings account. If it’s 3%, place 3% more into your savings, if it’s 6%, give it a try. Out of sight, out of mind sets you up for success.

3. Set Up Payments for Bills & Expenses With automation, your finances pretty much take care of themselves. You have direct deposit from your job, so your income is automatically added to your bank account. Your bills come out automatically; some credit cards even allow you to schedule your payments so you automatically pay the entire balance each month, or make the minimum payment.

Change Your Due Dates When you automate you may find that your expenses are not aligning with your paychecks. You can reach out to the people you owe and ask if you are able to change your due date. This will allow you to align your spending with your payday. If you aren’t able to move your due dates, consider using your tax refund to pay ahead one month so you can line your expenses up with your paychecks.

Automate Extra Funds to Debt If you’re paying off debt you can automate any extra money to go towards your debt payments. There are several lines of thinking in this arena, one is that you should apply all of your extra money towards the highest interest rate account. The other line of thought is to pay towards the lowest balance. Either method is effective, the key is getting started! Automate any extra funds to be paid towards your debt and as one account is paid off keep the momentum going.

4. Automate Investment Contributions Similar to savings automating investments helps you make sure that those are being funded. Often times we neglect our investments because of the things we want now. Use this opportunity to pay yourself first and fund your future self. If your employer matches your contribution you could choose to contribute the max matching amount automatically. This allows you to earn add’l money on your investment.

Contribution Options/Matching/Advice There is a lot of advice out there regarding where to place your retirement funds. The best thing to do is to speak with a financial advisor who has your best interest at heart. Getting a hold on your financial future takes a little bit of work but it will lead to a lifetime of happiness.

5. Evaluate & Adjust as Needed These are guidelines for automating your spending. The goal is to free up time, money and energy and to make savings and paying expenses on time easy and stress free. As we all know there may be add’l items that go into the spending, perhaps a car repair, a birthday celebration or another unplanned for event. Wonderful, evaluate your spending and adjust as needed.

CONTACT US 877-337-3399 We’d love to chat more! www.greenpathref.com GreenPath Financial Wellness is a nationwide non-profit that provides financial education and tools for people to lead financially healthy lives. I know we’ve talked about quite a bit– does anyone have any questions? Please feel free to check out our website www.greenpath.org for more information about us and our financial education material and tools. You’re also welcome to schedule a free phone or in person assessment to meet with one of our financial experts. If you’re ready to dive into the home buying process, we offer an online course that goes into much greater detail. We also offer a one on one session to discuss how what we presented on today applies to your situation and goals. Again thank you for your time and I hope this information is helpful. Thank you! 877-337-3399 www.greenpathref.com