Do These 6 Things Every Time You Get Paid (and Automate What You Can)
Getting paid is always a good feeling, but what’s even better? Knowing exactly what to do with that paycheck to set yourself up for success—automatically. The best part about managing your money is that it doesn't have to be hard or time-consuming if you have a plan. Here are six key steps to take every time payday rolls around, and trust me, you’re going to want to automate as much of this as possible!
1. Pay Yourself First
Before you even think about paying anyone else, you’ve got to take care of your future self. This means funneling money into your investments, retirement accounts, and emergency fund. And guess what? You can easily automate this.
Set up automatic contributions to your 401(k), Roth IRA, or brokerage account right after your paycheck hits. Most banks or investment platforms will let you schedule transfers, so you can sit back and watch your wealth grow without lifting a finger. If you’re building up your emergency fund, direct a specific amount into a high-yield savings account—again, automated so it happens without thinking.
2. Pay Your Bills
Now that you've taken care of yourself, it's time to pay the bills that are due before your next paycheck. The easiest way to stay on top of this is by automating your recurring expenses like your mortgage, utilities, or credit card payments. This takes the guesswork out of due dates and ensures you never miss a payment.
It’s important to track when each bill is due. A simple spreadsheet or an app can keep you organized, but don’t leave this to chance. Automation makes sure you’re always on time, and you avoid any late fees or unnecessary stress.
3. Check Your Spending
Even with the best plan, you can overspend if you’re not careful. Once your bills are covered, take a few minutes to review your spending. Are you sticking to your goals, or did you go a little overboard this month?
Tracking your spending doesn’t have to be complicated. Apps like Monarch Money or YNAB make it easy to link your accounts and get a quick snapshot of where your money is going. This helps you course-correct before it becomes a problem. No judgment, just awareness.
4. Set Aside Money for Irregular Expenses
We all know those expenses that sneak up on us—insurance premiums, car maintenance, or even holiday gifts. These aren't monthly bills, but they come around often enough that they need a plan.
Every payday, set aside a little for these irregular expenses. You can automate this too by setting up a separate savings account and scheduling transfers so you're never caught off guard. Breaking these costs down over time takes the sting out when they arrive.
5. Make Extra Debt Payments
If you're carrying high-interest debt, use each payday as a chance to make extra payments. This step will save you a ton in interest over the long run. Automating these extra payments to credit cards or loans makes it even easier to chip away at your balances without the temptation to skip a month.
Set up a recurring transfer to your debt accounts, targeting the loans with the highest interest rates first. This way, you can stay on track without thinking about it.
6. Fund Your Blow Fund
Lastly, don’t forget to enjoy life a little! A blow fund is just money you can spend on anything you want—guilt-free. Whether it’s dining out, hobbies, or that random impulse buy, set aside a small portion of each paycheck for fun. The goal here is balance, so you can enjoy the things you love without feeling deprived.
If you’re feeling extra organized, automate this too! Set up a separate account or even a cash envelope system so your blow money doesn’t bleed into your other financial goals.
The Bottom Line
When it comes to managing your money, automation is your best friend. By setting up these six steps to happen automatically after each payday, you’ll remove the stress of managing your finances, stay on track with your goals, and build a solid foundation for your future. So next time you get paid, relax knowing your money is already working for you!
