Managing money can feel like a chore to be ticked off the to-do list.
But there are ways to take some of the effort out of money management – which can have a positive effect on your finances, without you even having to try.
Here, Sarah Coles, a senior personal finance analyst at Hargreaves Lansdown, suggests some ways to automate your finances and boost your money management…
1. Automate your debt repayments
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“You can set up a direct debit to pay off your credit card in full and on time every month,” suggests Coles. “You’ll still need to ensure you have enough cash in your current account to cover it, but you don’t run the risk of missing payments and running up debt.
“If your balance is too big for this, you can still set up a direct debit to cover as much as you can afford to repay each month, so you automatically pay the debt down.”
2. Save without trying
Coles suggests setting up a direct payment to go into a competitive savings account at the start of each month.
“Alternatively, you can opt for automatic savings throughout the month,” she adds.
“Some current accounts will let you round up everything you spend, and put the difference into a savings account. You can use this to save for something specific, or boost your emergency fund.”
3. Look at workplace pension contributions
While rising living costs may mean some people need to reduce their pension contributions for now, others may have some wriggle room to put a bit extra in their workplace pension, which also has the benefits of employer contributions and tax relief.
For those who are able to put more in, Coles says: “These are automatic monthly payments, so if you make a change now and then leave it, you can be sure you’re boosting your pension each month.
“You don’t need to make dramatic changes in order to make a big difference on retirement, because the impact will build over time.”
4. Make regular payments into investments
Coles says: “Timing the market is notoriously difficult, but by setting up a direct debit to be invested each month, you can take advantage of what’s known as pound cost averaging, which essentially means you invest in bad times and good, in order to smooth out the impact of blips in the market.”
5. Set up bank account alerts
“If you struggle to keep an eye on your finances, then use alerts to make sure your bank contacts you about anything important,” Coles suggests.
“This can include anything from when you’re about to go into an overdraft or reach your credit limit, to when you make large payments. Some people sign up for weekly balance and transaction alerts so they can see where they stand.”
