Building Up An Automation System and Full Breakdown of my Salary

I have always heard of automation of your finances so that you can save more time and reduce all that brain work.

I did not start automating my finances only until end of last year as I felt that transferring manually was easy as banks nowadays have online apps.

But after I started all the automation, life became much easier. I do not automate my bills as I want to see my spending and if any extra charges are being charged. I only automate the splitting of my monthly salary.


How do I do that? I am sure most of the people reading this would know it but I was surprised that most of my friends do not know about it. I use standing instructions to make sure a certain amount goes to somewhere that I want.

A standing instruction is an instruction a bank account holder gives to the bank to set aside an amount at regular intervals to another account. For me, when my salary goes into my bank account,

• $600 goes into my Standard Chartered Jumpstart Account (Savings)
• $400 to my Mum for her allowances
• $300 to my FSMone for the ETF regular savings plan
• $300 set aside for my NTUC savings plan (Annual payment, 2 more years to go with 1 payment in Mar 2020)
• Rest of my salary for my spending and bills payment

Read more: Savings plan - Yes or No

I have standing instructions for my savings, FSMone and allowances for my mum so it kinda relieves me from having to personally go into the app and transfer the amount.

Read more: Switching from POSB Invest Saver to FSMone ETF RSP

So far, the automation system has been working well for me. And hope more people can find out more about it because it really makes you life a a lot easier.

References:
https://en.wikipedia.org/wiki/Standing_order_(banking)
https://www.businessinsider.com/automate-finances-tips-from-people-who-did-it-2019-6?IR=T