This year I had the opportunity to attend VMWorld, which for all you non-techy people is a giant geek conference where 23,000 people get together to learn anything and everything about VMware virtualization. It is a love fest for all things ones and zeros! I love it! I love it, because you get to hear about what the latest trends and technologies are in the virtualization or “cloud” industy and see how the landscape of IT is changing.
Having been in the technology industry for over 20 years I'm continually amazed at how fast technology is growing. It is continuing to be harder and harder to keep up with all the new technologies and learn them. As someone who likes to continue to stay on the cutting edge of technology, I've realized that a huge shift is occurring.
Due to the explosion of things like cloud, and other virtualization buzzwords, there is a huge need for automation. Automation in the way we deploy technology. As a result, that has been pushing me to learn how to write code to define my infrastructure and automate as much of the repeatable processes as possible.
Now I didn't write all that to bore you with IT jargon and tell you how the industry is changing. I write all that, because that same automation in your finances is needed too. With how busy our lives are, the demands of our jobs, long commutes, wife, kids, and keeping up with the Jones', it makes automation that much more important! It can't stress it enough! IF YOU AREN'T AUTOMATING A PORTION OF YOUR FINANCES, THEN YOU ARE LOSING MONEY!
“How am I losing out? I like my manual processes that make me feel in control”, you might say. To name a few:
- Saving – are you still mailing in a check to Vanguard, Fidelity, or Schwab every month to contribute to your IRA. Costs: Mailing in the deposit (postage), lost investment time that gets your dollars working for you immediately, not participating in dollar cost average, and the possibility you might forget to save one month.
- Two-Checking Account System – at the beginning of this year I started a program that demonstrated how automating your finances with two checking accounts creates a lot of efficiency in your life. By automating all your fixed bills from one account, then it'll motivate you to save, prevent you from getting overdrafts, and gives you more free time.
- Time – Putting in a little extra time to automate your finances will save you a lot time long term. In the computer industry we have this funny geeks chart that shows how real geeks script everything. This little illustration below shows how a putting a little time in early will benefit you longterm! So true with your finances too.
- Quicker time to debt freedom – by automating your fixed bills, then it'll help prevent overdrafts, ensure that your credit cards are paid on time, and ultimately help you get to freedom from debt quicker.
So what is preventing you from automating your finances? Are you scared to put in a little extra time upfront? What is your excuse? I guarantee you that if you just push through the initial effort, then you'll help your finances out long term! I know it has help me and my family get through a lot of difficult financial situations.