We all know there are priorities we should probably consider when it comes to money. Sometimes it can feel like there are way too many things that are pulling from our checking accounts. With all kinds of monthly expenses and barely enough left over for stuff you want, how can you really get ahead and stop living paycheck to paycheck? Forget the complicated spreadsheets and guilt-causing budgets – let’s start from scratch. This post explores some easy ways to automate your finances and to take steps toward getting your money working for you.

Pay Yourself First, and Make it Automatic

What does it mean to pay yourself? Any responsible financial decision to set money aside for the future can be considered as paying yourself. Think about how good it feels when you have enough money saved to pay for that thing you’ve been saving for. Or, when you’re ahead on your bills and don’t have to spend your entire paycheck just to keep the lights on and the water running. As soon as you have some extra cash, it’s time to start an emergency fund.

The easiest way to save money is to look at your finances and the money coming in, and decide how much you can realistically put aside from every paycheck. This might be different in different times of your life, but even if it’s just $20 – do it. Maybe it’s $100, or even more. Whatever the amount is, set up an automatic transfer in your bank account (every bank has this option) that will take out that amount of money the same day your paycheck comes in. That way you don’t have to deal with making the decision and your savings keeps growing without any extra effort.

What is an emergency fund and how much should it be?

If you’ve ever seen the check engine light in your car come on and had a sinking feeling in your gut, you’re not alone. Or, if you’ve ever dropped your phone in water and it wouldn’t turn on… you get the idea. Unexpected expenses are the worst, and can totally burn your extra cash. On the other hand, imagine if you had a chunk of money already set aside for those specific moments. Seriously – emergency funds can turn super stressful moments into small inconveniences.

A good emergency fund to start with is $1,000. While this won’t pay for huge medical bills or a brand new car, it is plenty to cover most car repairs or other smaller expenses that pop up. Even just having that money set aside creates invaluable peace of mind. Pick a small amount to start with and save that much from EVERY paycheck. It adds up quick!

Buy Things You Enjoy

If you have an emergency fund or you’re working toward one, there’s absolutely nothing wrong with spending money on things you want. Automating your finances so that you’re saving money while you sleep is truly the secret to a guilt-free budget.

There are so many ways you can set up your savings, too. Once you have a good emergency fund put away, maybe you’re interested in investing. Real estate, the stock market, retirement accounts, you name it. Or, maybe you want to save for something else, like a new car. Whatever it is, all you need to do is take another look at your paycheck and decide how much you can regularly put aside. Set it up with an automatic transfer, that way you don’t have to keep making the decision every time the money hits. People say there’s no secret to finances, no magic sauce, but this is really it! Make it automatic.