This post is part of a 30-day series called the 30 Steps Program to Financial Independence.

Step 8: Automate Your Finances

To reach financial independence, you know you need a significant amount of savings and smart investments that generate passive income over the years. Consistent and regular saving is crucial. Saving $20 at the end of the month only to spend it next month on a t-shirt won’t help you achieve financial independence, possibly because deep down, it’s not your true goal, or you might just be disorganized.

While I’m not always the most organized person, I’ve put my finances on autopilot to ensure consistency without having to manually handle everything each month. All my bills and taxes get paid automatically. I’ve asked my tenants to automate their rent deposits, and when I had another flat, the managing agency also made automatic deposits. A portion of this income goes directly into a savings account each month. This way, I don’t miss the money because I hardly see it coming in or going out of my checking account, so I don’t spend it.

If I ever have a lot of bills in a particular month, I can always access my savings account and transfer back some funds. However, I usually limit my spending to what’s left after all the automated payments. This method simplifies my life and helps me progress towards financial independence with minimal effort.