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The Automation Episode: Build Your Money System in 30 Minutes

Updated: 5 days ago

Money Automation

Episode Description: Welcome back to Deeply Invested! Last week we talked about small money decisions with outsized impact, and automation was at the top of the list. Today, we're putting that into action. This is an implementation episode, not an inspiration episode - we're pausing to let you actually set things up in real time.


As James Clear said on the Mel Robbins podcast, the balance of your bank account today is the result of actions you took a year or two ago. That's why automation matters. It helps ease the decision-making burden and makes it harder to undo good financial habits. By the end of this episode, you'll have at least one thing automated that will compound into real money over time.




Why Automation Fails (And How We'll Fix It) We address the common psychological barriers that stop people from automating:

  • "I want control over my money" → Automation IS control - you decide once with your rational brain instead of 12 times with your emotional brain

  • "What if I need that money?" → Start small ($25-50) and build slowly

  • "I'll just do it manually" → Reality check: you won't, and that's exactly why automation works

  • "It feels overwhelming" → Each automation takes 5-10 minutes to set up, then runs forever


The Automation Hierarchy: What to Automate First Not sure where to start? We break down the priority order:


Tier 1: Non-Negotiable

  • 401(k) contributions to get full employer match

  • Essential bills (rent/mortgage, utilities, insurance)

  • Minimum debt payments


Tier 2: Foundation Building

  • Emergency fund contributions ($25-100/paycheck)

  • Savings for known upcoming expenses

  • Increased 401(k) beyond match (even 1% more)


Tier 3: Wealth Building

  • IRA contributions

  • Brokerage account investing

  • Extra debt payments beyond minimum

  • Goal-specific savings (house, vacation, car)


Tier 4: Optimization

  • HSA contributions if eligible

  • 529 plans for kids

  • Charitable giving

  • Micro-optimizations


Step-by-Step Automation Walkthroughs


Automating Savings:

  1. Decide your amount (even $25 is great)

  2. Choose your timing (day after payday works best)

  3. Set it up in your banking app

  4. We literally pause the episode for you to do this right now


Automating Bill Payments:

  • When to use autopay (consistent bills, expensive late fees)

  • When NOT to use autopay (variable amounts, services you're considering canceling)

  • How to set it up for just ONE bill today


Automating Retirement Contributions:

  • For 401(k): Know your match, increase by just 1%, set up automatic annual increases

  • For IRA: Open an account (Vanguard, Fidelity, Schwab), choose Roth or Traditional, automate even $50/month

  • Resources: Our blog post on choosing the right investment account + Investing Made Simple Guide


Automating Debt Payments:

  • Approach 1: Automate minimum payments (protects your credit)

  • Approach 2: Automate extra payments (accelerates payoff)

  • Pro tip: Schedule payments right after payday


Common Mistakes & How to Avoid Them

  1. Automating too much too fast → Start small, increase 25% every 3 months

  2. Set it and completely forget it → Review annually

  3. Not accounting for cash flow timing → Schedule 1-2 days AFTER payday

  4. Automating bills you should cancel → Do a subscription audit first

  5. Giving up after one overdraft → Adjust the amount or timing, don't abandon the system


How to Increase Your Automation Over Time Automation isn't static - it grows with you:

  • Review quarterly and increase one automated amount

  • Increase 401(k) by 1% annually

  • Round up savings amounts ($75 → $100)

  • The Raise Rule: When you get a raise, increase automation BEFORE lifestyle creep kicks in (got a 5% raise? Increase automated savings by 2-3%)



YOUR ACTION PLAN:


If you haven't automated anything yet, pick ONE thing this week:

  • $25/paycheck to savings

  • One bill on autopay

  • Increase 401(k) by 1%


Remember: The people who win with money aren't the ones with the most willpower. They're the people who build systems that work even when willpower runs out. Automation is that system.



RESOURCES & LINKS:

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