Autopilot 101
Managing your money doesn't have to feel complicated or time-consuming.
Putting a system on autopilot can help you stay on top of bills, savings and everyday expenses without having to manually move your money each pay cycle.
What is autopilot?
Autopilot means setting up automatic transfers and payments so your money moves where it needs to, without you having to think about it.
Autopilot can look different for everyone. It might be as simple as scheduling a recurring payment to your credit card each month, or it could involve splitting your salary into different accounts for savings, needs and wants (as shown in the video).
Either way, autopilot reduces the need to manually move your money to pay bills or to save. And it’s easy to set up.
How to set up an autopilot
Step 1 – Set up different accounts
Open separate bank accounts that you want to divide your money into. This could be savings, needs and wants, for example.
Step 2 – Deposit your salary
Have your salary deposited into one of your accounts. This could be your savings account.
Step 3 – Budget and allocate
Work out how much of your salary goes into each of the separate accounts based on your budget. Allocating your salary based on a clear budget is the key to making your autopilot work for you!
Step 4 – Set up recurring transfers
Once you know your allocations in step 3, set up recurring payments to automatically move funds into your separate accounts each time your salary comes in.
Step 5 – Automate your bills
If you have a separate account for your bills, you can set up direct debit arrangements to have the bills be paid straight from that account. This can help reduce the risk of late payments.
Step 6 – Review and adjust
Life changes, and so do our expenses. It is important to review your autopilot system regularly and adjust if needed.
Is autopilot right for you?
Autopilot can be an effective way to reduce the mental load of managing money. But it works best when you understand your expenses and know what you can afford to set aside.
Looking to power up your money?
Find more Bank First content on Financial Wellbeing to help you make the money stuff easy.