One of the biggest time-wasters for me is checking my account balances online, and shifting money back and forth between checking and higher-interest savings to maximize my interest. It’s a delicate balance, since one $30 overdraft fee can kill increased interest very quickly. Last year I solved this problem and fully automated my finances. Here’s how I did it:
- Opened an online ING Checking account with high interest (right now its 1.75% 1.0%, but that still beats Chase at 0.15%)
- Set up direct-deposit of our paychecks into this account
- Analyzed our monthly ATM withdrawals and set an auto-transfer in ING to move that much money, plus a little cushion, into Chase on the 1st of every month (we have to do this since ING does not have local ATMs in NYC, and we don’t want to pay ATM fees. Chase has more ATMs than any bank in NYC, and is available in Duane Reade as well)
- Set up auto-pay for mortgage, maintenance, cell phones, cable, electricity/gas, parking, insurance, credit cards
- Set up auto-withdrawals of a set amount each month into Fidelity brokerage account
- 401(k) and employee stock purchases contributions are automatically taken out of paycheck
- Automatic savings for vacations and emergencies goes automatically from ING Checking to ING Savings monthly (I have a future plan to set up several savings accounts one for each category, since I don’t like mixing my emergency funds with funds I plan to spend)
With all that done, all I need to do is:
- pay Amex (they still don’t have an auto-pay) [Update: Amex has direct debit! You have to call their 800 number and ask for a form, it's not available on the website. Another update 12/14/08: you can now enroll for this online, it's called AutoPay. Make sure you set it up to pay your full balance, not your minimum balance]
- review credit card bills 1x per month for errors, etc
- glance at ING once per week to move any excess checking money into savings or investment accounts (although this shouldn’t happen if I’ve properly budgeted)
- do everything else I want to do in my free time!
What are your tips for saving time with your finances?
When was the last time you thought carefully about your finances? If you are like most 20 - 30 somethings, it's been too long. Now is the time to get your financial ass into shape. After all, it's YOUR future. Read on: I guarantee you will learn something new here that will have a big impact on your life. 
I found your site on Google and read a few of your other entires. Nice Stuff. I’m looking forward to reading more from you.
What’s up Alex. Nice break down of stuff. I especially like the term life post.
If you’d like a higher return on your savings, you may want to check out both EmigrantDirect (2.75%, has consistently beats ING for ~3 years), or E-Loan (3.01%, has beaten Emigrant the last year).
Also, I know Chase does auto pay (and gives 1% cash back). I hear of cards that do better, but have been too lazy to switch. You may want to cover when it’s good to have credit card debt in a future post (getting 0% interest for instance, but making sure you save the amount to pay in a lump sum when the holiday is over)
Hope this helps, thanks for taking your time to provide so much information!
Alex,
Nice information. I also have an ING, but use it as a long term savings account. Never thought to use your method. I do take advantage of their CDs. I would like to see a post on credit cards (both personal and business strategies) . I have been using Chase’s credit card and love their cash rewards.
I will have to investigate EmigrantDirect and E-Loan.
- Nnamdi