Auto Pay or Auto Pilot?

Our money world has changed dramatically over the past two decades.  We can pay electronically, automatically and periodically.  We do not have to even click a button to make a monthly payment.  Like magic, our credit card or utility bill is paid.  Such options are advertised as saving us time and money.  After all, no stamps or envelopes are involved.

Yet, most people do not have a handle on their finances because everything is happening so quickly financially.  No more time to write out a check or count out the cash when in line for groceries!  Instead, we swipe and go. This mentality challenges our record keeping.  Good recordkeeping is key to keeping some money for you. 

So we all like the automatic transaction.  But do you know where your money is going?  Could you tell me today how much money comes out of your checkbook automatically each month?  Most people cannot.  Then, the amount of auto pays from their credit card needs to be understood as well.

Your task for today is:

Find out which auto pays come out of your checkbook.  Then, from your credit card.Looking at a recent credit card and bank statement will give you this information.

Then, total the amount. Make a note and keep the amount handy for later this week.

This is part of your gaining not only an understanding of your spending, but your consciousness around how and what you spend on.  MoneyPeace means knowing where your money goes and having a system.

If you have this simple way of paying bills, consider who benefits in the long run.  I believe it is the company getting paid, not you.  However, there is a way to make this easier to track.  In the future we will talk about how a MoneyPeace system will help you frame your money decisions better. 

Thinking ahead, one thing I always say is “People with money have accounts.”  So if you want some more money in your life, consider a different way of managing it.  For now, you do not have to make any changes, just explore the possibility and any resistance you may have to the change.

Here are some more thoughts on “People with Money Have accounts.”  For less than four minutes of your time, check out this MoneyPeace video: https://www.youtube.com/watch?v=3zuF3Dc0Hns