We can all agree that handling finances is not a favorite pass time of the human. I don’t even like it, i would rather be spending my money than allocating it to the correct accounts.

This is where Automation comes into play. Imagine you have your Checking account, then a savings account, then your 401k, also coupled with a Roth IRA, a Brokerage, and a Online Purchasing account. That is a hefty amount of accounts. The average American has 5 Credit Cards in their wallet, that is just cards! Imagine Accounts!

I know having a lot of accounts can get hectic. This is why i just recently Simplified my account structure. Having too many accounts can make automation frustrating. So before you do any automation simplify your structure. Get rid of any unused Checking accounts, savings accounts, or Brokerages. I highly suggest you do not Close any Credit Card accounts for the reason that it can negatively affect your score. Unless you are determined to get rid of the card keep it, and never carry a balance.

The first step of automation should be Direct Deposit from your employer. If your employer does not offer Direct Deposit, Quit because a company that cannot grasp simple efficient technology is doomed. Just kidding. My last employer did not offer direct deposit so what i did was asked my boss to mail my check to my bank with my info written on the check so it got deposited.

Here is where it gets tricky. Once the money arrives in your Checking Account (This is where i recommend your check gets deposited into) you then will want to fund your Retirement accounts (401k or Roth IRA) and your savings. These things you want to do first so that you do not get tempted to spend it.  Say for example your Deposited check arrives the 5th of every month. Set up automatic transfers to Retirement accounts and Savings for the next day, to allow for any delay of funds.

This step is taken care for me automatically. My companies direct deposit structure allows me to make Allotments to other accounts then have the Net deposited into the Checking account last. I automatically invest and save before i even see my check. That way the money i get in my checking account is solely for Debt Bills, and guilt free spending.

One more step of automation you can make which i have failed to do so far. Is automating Bill Pay. To do this you will need to work with your bank, usually the online website. Look for a section that says bill pay. It should be free. If not, switch banks and Stop using Bank of America they are evil. Automate your cable bill, phone bill, utilities, or any other bill you are not billing to your credit card.

I highly recommend you DO NOT use credit cards for your bills while you are trying to get out of debt. Use your debit card, it works great for paying bills online. Then use your banks FREE bill pay system where you type in who it goes to and the amount and they Send them a check. Pretty slick eh? Toss your old check book and get with the times. You can use Plastic as long as it is debit, and the online features of some banks are getting so advanced you can even email pictures of checks to banks and have them deposited! ( i am impatiently waiting for my bank to start that, and for the Application to come out for the Hero!)

I hope this helps some of you! i will get into more detail in the future.

I have recently been simplifying my bank accounts. I have between 10-15 bank accounts (counting each of my sub divisions on ING Direct.) I decided that this was too much. It complicates my finances, i have not been able to set up any Automation because of the complexity of my system. So i criticized a few accounts and have been in the process of closing them.

Closing these accounts have simplified my financial system, allowing me a piece of mind, not having to worry about 3+ accounts over drafting, or going under the minimum balance (only one account required a minimum balance and that is one i closed) I hate minimum balances on checking accounts. That is why when you go to open an account, opt to get one with No minimum balances, No fees, Free checking, Free ATM usage, and Free Bill Pay.

With my new job on the way, i will be able to finally enroll in Direct Deposit (my old job offered no such benefits). This is the first step to automating my finances. But more about that later.

If you have some accounts you do not use, or you hate, close them. Personally i closed an account i had from another state. I could only access that account through ATMs, there are not any branches where i live. So i called my bank and asked them to send me a check for what i had left in the account (not much!) and close my account. No problem. 4 minutes of my time and my financial system is one account smaller.

Next up to get Canned, a big corporate bank that i signed up for a while ago just to get a reward they were offering. No brainer, close this account. For one reason, it is a big corporate bank, i opt for Credit Unions over Banks any day.

Lastly, i decided to close an Online Savings account that i opened a while back. It is not my main Savings account so i decided it can go. The account is not easily accessible, nor is the interface the best. I have another account that is much more flexible. That one savings account is enough with all of my sub divisions.

Note, i did not close any accounts with Credit Cards linked to them. I just closed Checking and savings accounts that were old, outdated or cost me money with ridiculous fees.

I learned this awesome lesson the hard way. About a year ago (before i was financially educated) i for some reason decided i needed to check my credit report. I guess this was a wise decision seeing as how i was making terrible financial decisions at least i was making a good one, or so i thought.

So i logged on to Freecreditreport.com and signed up. Of course i didn’t read the fine print and did not notice that what i was signing up for was a Monthly Charge of $14.95. The awesome thing was i could not figure out what the charge was! On my statement it was labeled as Triple Advantage Membership. I keep pondering to myself, did someone steal my card number? Did i register for something and forget about it? Or was i conned by a stupid commercial about how something was supposed to be free but really wasn’t?

I was set on the latter of the three. I called up my credit card companies and asked what the charges were for. I was then notified it was for the freecreditreport.com membership.  I then called the company and had them cancel my membership. I also asked for a refund of the money (3 Months of being billed $14.95) but they refused to return the money. This was years before i learned about negotiations and how to get fees waived. I was suckered, and i am sure there are a lot of you out there who fell for this same trick.

If so tell me about it in the comments section. Thanks for viewing. Sorry for the delay on the content recently.

I generally buy goods and keep them for as long as possible or never sell them at all. I do this because items rarely hold their value for long periods of time.  I try to get the most of my money out of an item. When you go to sell an item, you will typically get about 50% of retail price. Most individuals tend to value their property more than others.  Let’s say you pay $100 for an item, you won’t want to let it go for less than $80, but the truth is most people would expect buy it for about  $50.

I sell items when I am in a jam and need the money. It hasn’t happened a lot but I know we all have these stories. Garage sales are a great way to sell possessions. I am constantly surprised at what people will buy. Selling items using a local classifieds is another option. Sites like www.craigslist.com, www.ksl.com, and www.ebay.com. I generally only sell items I know that I can get back when I have the money. I recently sold my Xbox 360 because I know I can always buy another when I am in a better financial position. (or when the new Call of Duty comes out ).

If you buy something and it doesn’t turn out as high of quality as expected or not what you needed, try to return it first. If that option is out, try selling it.

If you made a big purchase on credit, such as a TV or furniture, try to return it. Scrutinize your purchase, do you really need this? If not return it and feel good about not owing that much more in debt.