Big Picture, Financial Planning, Millennials

How To Setup An Automated Financial System

Most millennials lack organization when it comes to their finances.

They have no idea how much they spend or on what and that leads to very little saving in the long run. Here’s the good news, this is fixable. You just have to setup an automated financial system.

Here’s how 👇

Creating an automated financial system sounds more complex than it is, but it is just because you don’t know which tools to use yet. With online banking, putting your money on autopilot has never been easier. Let’s dive into how to actually do it.

1. Create 2 bank accounts (at a minimum) – a checking and a savings accounts

If you only have a checking, you can open a savings account at your bank, or get an online high-yield savings account (HYSA). I prefer a local brick and mortar bank for checking. Then an online HYSA for your savings (Ally or marcus are my two favorite).

2. Set up monthly automated transfers

Next, log into your banking app on your computer and go to ‘Transfers.’ Most apps have you select a few things: which accounts the money is going to and from, the amount, and then it asks for the frequency. This is where you set up the recurring transfers.


Depending on how often you get paid, you can set up transfers to happen once a month or bi-weekly. For example, let’s say you get paid on the 1st and the 15th, since rent is due on the first, you might not have much money left over after the first paycheck. So for that automated transfer, you set it up so it transfers a little bit of money. Then on your second paycheck, you can set a monthly transfer the exact same way and hopefully you are able to do more with less fixed payments towards the end of the month.

I recommend setting the transfers for a few days after pay day since they’ll happen automatically. You don’t want it to transfer the money and then the account goes negative because the paycheck hasn’t landed yet for whatever reason. But once you’ve got those recurring transfers complete, your savings is now automated.

Bank Account Breakdown

So here’s the plan you should have with what type of accounts to use, how to use them, etc.


3. Setup automation for other savings and investments

Go apply this same logic to your ROTH IRA, taxable investment account, etc. The goal is to automate everything you possibly can to ensure you are on track for your goals.

Here is what it should all look like when it is put together. I would encourage you to even get these percentages up and invest more.


I hope this helps you visualize how to set up an automated system for yourself. Do this today! It will make your financial life 10x better and more effective.