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What Does It Mean to Automate Your Finances and How to Start?
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What does it mean to automate your finances and how to start?

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Chris Muller

By Chris Muller

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Did you know that 30% of Canadians cite financial stress as a larger worry than their overall health? But managing your money doesn’t have to be a headache! In this article, we share eight simple strategies to automate your finances and grow your wealth, as well as some easy tips on how to get started.

Pay yourself first technique

Financial writer David Bach popularized the concept of “paying yourself first” in his book, The Automatic Millionaire. It means treating yourself like a bill and routing a specific portion of your income to a designated account before making any other expenses.

Since you are moving cash directly from your paycheque into your savings or investing account, you’re considered to be “paying yourself first.” So you’re stocking your accounts before paying off other monthly expenses – like your mortgage and utilities.

Experts like David Bach express that the “pay yourself first” technique is an excellent way to make regular savings payments to yourself every month. Since it’s automatic, your urge to neglect a “payment” is lower. You may not even notice the missing money!

Should you decide to pay yourself first, think beyond socking cash away in a chequing or savings account. For example, “pay yourself first” can mean funding a TSFA or RRSP investing account. It can also mean putting money away to achieve a financial goal: from building an emergency fund to saving for retirement to saving for a down payment on a home.

Wherever you decide to park your cash, paying yourself first is a great way to build wealth in the long run. Timely and constant contributions to your savings go an exceptionally long way in building your long-term nest egg. A lot of personal finance experts even consider this approach the golden rule of personal finance.

Ways to automate your investment portfolio

Now that you know the importance of paying yourself first, consider putting aside a chunk of change and setting up an automatic deposit into an investment account. There are a few easy ways to automate your investment portfolio:

Set up automatic deposits

Nearly all online brokers and robo advisors in Canada make it super easy to invest automatically on a regular basis (monthly, bi-weekly, weekly – whatever works!). Here’s how this works:

  1. 1 First, schedule an automated, recurring transfer out of your bank account directly into your investment account.
  2. 2 Next, you’ll indicate how you want those funds distributed. For instance, a certain amount could go right into a specific index fund. On the other hand, if you’re using a robo-advisor, it should disperse the funds for you automatically (a lot better!).

Additionally, several robo-advisors, including Wealthsimple or Nest Wealth, allow you to schedule automatic deposits into your investment account without any additional fees. With a robo advisor like Wealthsimple (our top choice), you can set up a bi-monthly, month-to-month, or per-week program to deposit money. Then you just sit back and watch the money pile grow!

Get started with Wealthsimple

Or to keep automatic investing low-cost, invest directly with a discount brokerage to avoid paying a hefty trade commission. Try out one of our absolute favourite discount brokerages, Questrade.

Start investing with Questrade

Sign up for Overflow by Wealthsimple

If you want to turbocharge your savings, consider getting Overflow by Wealthsimple. A fantastic, (and free) feature, Overflow automatically invests excess money from your bank account into a Wealthsimple Invest or Save account. All you have to do is set an amount of cash you want to keep in your chequing account. Once a month, any money on top of that amount will be automatically deposited into your Wealthsimple Invest or Save account. After the initial setup, you never have to lift a finger. Brilliant!

Start investing with Wealthsimple

Use an app with RoundUp features

If you need a nudge, you can also try using an automatic saving app like KOHO or Neo financial. They offer an ingenious solution to putting your loose virtual change to work for you: just install one of the apps on your phone and every time you make a purchase, it rounds up to the nearest dollar and puts the change into a savings account (which you can later transfer into your robo-advisor account or use as a rainy day fund). 

Use a budgeting app

Or if you like the idea of being more hands-on with your budget tracking, utilize a tool like You Need A Budget to link up your bank accounts and monitor your spending. You can try the app for free for one month, and according to YNAB’s data, new budgeters save on average $600 by month two and more than $6,000 their first year. That’s extra cash you can re-route right to your investing account.

Increase your automated deposits over time

Another savvy saving strategy? Increase your automated deposits over time. Called “automatic escalation,” this involves automatically increasing your savings rate each year. It also might require a little work on your part, depending on where savings are going. Quite a few online investment platforms will enable you to increase your recurring contributions on an annual basis. This is also true for online-only banks.

If this type of feature isn’t available, I recommend adding an annual reminder to your calendar, detailing instructions on how much you’ll increase your savings. The primary benefit of automated escalation is that it inhibits “lifestyle creep” that frequently takes place with a growing salary.

Consolidate your bank accounts

Here’s a shocker: a recent study suggests that preserving your cash within one account might help you save some big bucks. Study participants with access to only a single account spent almost 10 percent less than people with multiple accounts. The researchers even did three more follow-up studies, and the results were similar: having fewer accounts has a pay-off.

Why is this? If you have many different accounts, it can be tricky to track how much money flows in and out, leading your spending to get out of whack. The study I referenced above even calls this the “fuzzy-trace theory” because of how fuzzy your mind gets.

To clarify, we’re not saying to get rid of all but one of your bank accounts. For many Canadians, keeping several accounts may make budgeting a heck of a lot easier, and having both a chequing and high-interest savings account makes good financial sense. The takeaway here is that, on average, people save more when designating their spending to one money pot.

Scotiabank Preferred Package

Therefore, if you are using multiple bank accounts for your everyday spending, move that money into one chequing account and spend from there. For the best chequing accounts in Canada, our top pick is the Scotiabank Preferred Package account. It’s actually a rewards chequing account, which is a rarity in the banking world. This chequing account also comes with unlimited debit transactions², Interac e-Transfer† transactions and a special $700 welcome offer* until July 31st, 2025. 

² Conditions apply. 

  • Legal Reference & Disclaimer - $700 offer

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    *The Scotiabank Cash Bonus Bundle Offer (the “Offer”) is available between May 1, 2025 and July 31, 2025 (the “Offer Period”) to individuals who open new eligible accounts. Subject to the Offer conditions, eligible clients can earn $500 when they open a new Preferred Package or Ultimate Package chequing account and complete certain qualifying transactions. Plus, clients who meet the conditions for the $500 bonus are also eligible to earn up to $200 in additional cash bonuses when they bundle their new Preferred or Ultimate Package chequing account with a new Money Master Savings Account and/or a new eligible Registered Account and complete certain qualifying transactions. $500 Cash Bonus for Preferred or Ultimate Package Conditions: To qualify for the $500 cash bonus (the “$500 Package Bonus”), you must 1. Open a new Ultimate Package or new Preferred Package chequing account (the “Eligible Chequing Account”) during the Offer Period; and 2. Complete any two (2) of the following activities in your Eligible Chequing Account within 60 days of Eligible Chequing Account opening: • Set up and receive at least one eligible automated and recurring direct deposit†, such as payroll or pension, which will recur monthly for a minimum of six (6) consecutive months in total, or • Set up and make a minimum of two (2) separate eligible recurring pre-authorized transactions† with a minimum value of at least $50 per transaction which will each recur monthly for a minimum of six (6) consecutive months in total, or • Make at least one (1) eligible online bill payment† of at least $50 through the Scotiabank Mobile App or through Scotia OnLine. † Click here for a list of eligible direct deposits, pre-authorized transactions and online bill payments. Notwithstanding a transaction may be included in these lists, certain exclusions may still apply and Scotiabank reserves the right to modify these lists and to determine whether a specific direct deposit, pre-authorized transaction or bill payment is eligible for the $500 Package Bonus. Fund transfers initiated to other Scotiabank accounts (one time or recurring, e.g. credit card or savings account), to chequing or savings accounts held at other financial institutions, or to payment processing firms, are not eligible for the $500 Package Bonus. $100 Money Master Savings Account Bundle Conditions: To qualify for the $100 cash bonus (the “$100 Savings Bundle Bonus”), you must meet all of the conditions for the $500 Package Bonus, and: 1. During the Offer Period and within 60 days of opening your Eligible Chequing Account: i. Open a new Money Master Savings Account (the “Eligible Savings Account”). ii. Enroll your new Eligible Savings Account in either the Pay Yourself First or the Savings Finder tool (each a “Smart Savings Tool”). 2. Remain enrolled in your selected Smart Savings Tool for 90 consecutive days. Note: Enrolment in a Smart Savings Tool is subject to certain eligibility requirements and can only be done through the Scotiabank mobile banking app. For example, enrollment in the Pay Yourself First tool will not be available if you have not had at least 4 recurring deposits to your Scotia Chequing Account at the time you attempt to enroll. Also, both the Eligible Chequing and Savings Accounts must be “Any to Sign” to be eligible for the Smart Savings tools. Only one Smart Savings Tool can be enrolled in at a time but you can switch tools at any time, however, you must remain enrolled in a Smart Savings Tool for 90 consecutive days from the date of first enrolment in step ‘1 (ii)’ above. See the Smart Savings Tool Agreement for full terms and conditions. $100 Registered Account Bundle Conditions: To qualify for the $100 cash bonus (the “$100 Registered Bundle Bonus”), you must meet all of the conditions for the $500 Package Bonus, and: 1. During the Offer Period and within 60 days of opening your Eligible Chequing Account, open a new Eligible Registered Account (as defined below); and 2. Within 60 days of the Eligible Registered Account opening, contribute or transfer in a minimum of CAD $5,000 into your new Eligible Registered Account and maintain that minimum amount each day for at least three (3) consecutive months. For the purposes of this Offer, the following Scotia Registered Accounts opened with either The Bank of Nova Scotia (“Scotiabank”) or Scotia Securities Inc. are defined as “Eligible Registered Accounts ”: Scotia Registered Retirement Savings Plans (excluding Spousal RRSPs and locked-in plans such as LIRAs and LRSPs) (each an “RRSP”), Scotia Tax-Free Savings Accounts (each a “TFSA”) and Scotia First Home Savings Accounts (each a “FHSA”). Scotia RRIFs (including locked-in income plans), RESPs, RDSPs, and non-registered Scotia Investment Accounts are not included in the definition and are not eligible for the Offer.

    Offer Eligibility and Exclusions: Individuals who are currently holders of, or who were previously holders within the last two (2) years, of a Scotiabank Chequing Account are not eligible for the Package Bonus. “Scotiabank Chequing Account” means any of the following accounts: Ultimate Package, Preferred Package, Scotia One Account, Basic Plus Bank Account, Basic Banking Plan, Basic Bank Account, Momentum Chequing, Power Chequing, Scotia One Service, Scotia Value, Student Banking Advantage Plan. In order to qualify for the $100 Savings Bundle Bonus the individual cannot currently hold or have held a Money Master Account with Scotiabank in the six (6) months preceding the Offer Period. In order to qualify for the $100 Registered Bundle Bonus, the individual cannot have held the same type of Eligible Registered Account (as that opened during the Offer Period) with Scotiabank in the six (6) months preceding the Offer Period. Employees of Scotiabank are also not eligible for these Offers.

    General Offer Terms: Provided all of the $500 Package Bonus conditions have been met, the $500 Package Bonus will be deposited to the Eligible Chequing Account within approximately nine (9) months from account open date. Provided all of the $100 Savings Bundle Bonus conditions outlined above have been met, the $100 Savings Bundle Bonus will be deposited to your Eligible Savings Account within approximately thirteen (13) months from the account open date. Provided all of the $100 Registered Bundle Bonus conditions have been met, the $100 Registered Bundle Bonus will be deposited to your Eligible Registered Account within approximately ten (10) months from the account open date. You have 24 months from the date you believe you have fulfilled the applicable Offer conditions to notify us if you have not received the applicable cash bonus so that we may confirm your eligibility. For clients investing in non-Canadian dollar currencies, the investment will be calculated based on Canadian dollar equivalent at the Scotiabank rate on the transaction date to determine eligibility for the offer. All bonuses will be paid in Canadian dollars.

    For any cash bonus to be fulfilled, the Eligible Chequing Account, the Eligible Savings Account and the Eligible Registered Account, as applicable, must be open and in good standing until the time of payout of the cash bonus. The Eligible Chequing Account is not in "good standing" if: (i) it has a negative balance exceeding the authorized overdraft limit, (ii) it has been in continuous overdraft for a period of three consecutive months, or (iii) the Account holder is in breach of the Account agreement with Scotiabank. The Eligible Savings Account is not in 'good standing' if it has a negative balance, or the Account holder is in breach of the Account agreement with Scotiabank. An Eligible Registered Account is not in 'good standing' if the account holder is in breach of the Eligible Registered Account’s client account agreement. Clients are responsible to confirm their applicable registered plan contribution limits prior to making any contribution to their Eligible Registered Account(s). The $100 Registered Bundle Bonus is not considered a contribution. Scotiabank and Scotia Securities Inc. are not responsible for any contribution over a client’s applicable registered plan limit in connection with this Offer. Clients should consult with a tax advisor to discuss any tax implications in connection with this Offer and clients are responsible for any required tax reporting.

    This Offer is non-transferable and may not be duplicated. Limit of one (1) $500 Package Bonus, (1) $100 Savings Bundle Bonus, and one (1) $100 Registered Bundle Bonus per client (for a total bonus of up to $700), regardless of the number of Eligible Chequing Accounts, Eligible Savings Accounts or Eligible Registered Accounts opened.

    If more than one (1) Eligible Chequing Account is opened, only the first Eligible Chequing Account opened will be eligible for the $500 Package Bonus. If more than one (1) Eligible Savings Account is opened, only one Eligible Savings Account that fulfilled the $100 Savings Bundle Bonus conditions will be eligible for the $100 Savings Bundle Bonus. If more than one (1) Eligible Registered Account is opened, only the first Eligible Registered Account that fulfilled the $100 Registered Bundle Bonus conditions will be eligible for the $100 Registered Bundle Bonus. If two Eligible Registered Accounts fulfill on the same day, the $100 Registered Bundle Bonus will be paid into only one of the Eligible Registered Account(s) in the following order: (1) Eligible TFSA, then (2) Eligible FHSA, then (3) Eligible RRSP. For joint accounts, only the primary Eligible Chequing Account holder is eligible to receive the $100 Savings Bundle Bonus and $100 Registered Bundle Bonus into their Eligible Savings Account and Eligible Registered Account, as applicable. The primary account holder must be the same client on both the Eligible Chequing Account and Eligible Savings Account.

    All rates, fees, features and benefits are subject to change. All other terms and conditions of the Account and Smart Savings Tools Agreement continue to apply. The Offer is non-transferable and may not be duplicated. Offer may be changed, cancelled or extended at any time without notice and cannot be combined with any other offers on the Account, unless otherwise permitted by Scotiabank.

*Terms and conditions apply. See Account Provider's website for complete account details, terms and current offers. Reasonable efforts are made to maintain accuracy of information.

Sign up for the Scotiabank Preferred Package

Get going with direct deposit

For many busy, working people on the go, it’s far too easy to misplace a cheque or even forget to cash it altogether. Why not cut out the hassle and just have your cheques deposited directly into your chequing account? This is called direct deposit, and it’s a payment made electronically from one financial institution to another.

The most common example is when you get your paycheque deposited into your bank account, but it can apply to other things like your tax refund or the Canada Child Benefit. Why wait for Canada Post to deliver the cheque to your mailbox when the moolah can virtually drop into your account in an instant?

To make transfers in Canada, banks use what’s referred to as the Electronic Fund Transfer (EFT) network. This unique network coordinates these payments among all Canadian banking institutions. To set up electronic payment, just provide your bank account details to the institution sending the money. Usually, you’ll need to provide either a void cheque, a direct deposit form, or some other type of authorization from your financial institution.

Streamline your bills

Believe it or not, streamlining your bills can relieve a lot of money stress, and goes a long way when automating your finances. Here are some savvy strategies to try:

Pay your bills by using a credit card

A lot of people pay their bills with a credit card. How this works: with each company (e.g. mobile phone, utility provider, cable, etc.), you can set up pre-authorized payments directly to your credit cards so that you never miss a payment. In doing so, you can not only sit back and relax, but also benefit from great incentives like cash back or travel rewards.

Tangerine Cashback card

Get 2% cash back on recurring bills

Paying all your bills with a credit card makes it easier to manage everything, and there are some big benefits to having the right credit card.

For instance, recurring bill payments count as one of the eligible 2% cash-back categories eligible for the Tangerine Money-Back Credit Card. Here’s how it works: you get 2% cash back on two eligible Tangerine spending categories (which you choose), plus get a third when you have your Money-Back Rewards deposited into your Tangerine Savings Account. Everything else charged to the card gets you 0.5% cashback.

Aside from the cashback benefits, another great thing about setting up recurring bill payments is that you don’t need to worry about due days – it’s all paid for you on a schedule. Instead, you just pay the one credit card bill each month that includes all your other bills. Of course, you’ll need to exercise the self-discipline to pay the credit card bill in full every month – otherwise, this won’t do you much good.

Learn more about Tangerine Bank

*Terms and conditions apply

Pay annually

There are companies (e.g. Amazon Prime) that let you pay annually for their services, and some will even offer a discount or special pricing for annual payments. Taking advantage of this not only cuts down on juggling bill payments but can lower your overall expenses. The bottom line? Paying annually can make the bill-paying process a heck of a lot easier. Plus, you’ll be amazed at how much time and money you’ll end up saving.

Automate your budget

An automated budget is one of the most effective ways to take to boost your savings. It forces you to examine your money habits and alerts you if your spending goes awry. The numbers don’t lie!

But managing a budget manually can be time-consuming and aggravating. Luckily, it’s, 2019 and there are apps to help make this a cinch. I absolutely love an app called Monarch (and it's finally available in Canada) — it takes the hassle out of categorizing everything and instead automates the process to suit your needs. There’s also YNAB, which we’ve mentioned above.

Automate your credit score monitoring

Every Canadian should be concerned about their credit score because your number affects so many aspects of your financial life: from securing a personal loan to the interest rates that you’re charged to getting approved for one of the best credit cards in Canada. Even if you’re debt-free, you should still care about your credit rating. For instance, if you’re thinking of purchasing a house or starting up a business, having poor credit can jeopardize your chances of getting approved by a lender. For these reasons, monitoring your credit score should be part of automating your finances.

That being said, it’s not impossible to get a personal loan with bad credit. You can apply with a bad credit lender, and there are several reputable ones in Canada. For the best of the bunch, check out our article on The Best Bad Credit Loans in Canada.

Luckily, there are some fantastic apps that will help monitor your credit rating, as well as offer advice on how to improve your score. Some can even help you challenge any black marks on your credit history. You can even get a free credit score check with the Canadian financial technology company Borrowell, and looking it up won’t affect your credit score.

I’ve been using an app to monitor my credit standing and their ideas on how to boost my score were invaluable when I went to get a mortgage last month. Simple strategies like lowering your debt utilization ratio, getting credit limit increases, or paying down personal debt can go a long way toward boosting your number. Using an app like Borrowell is a great way to automatically keep your credit score in check.

Last word

Overall, automating your money takes a little work up front, but ultimately, it has a big payoff down the line. Start small by implementing some of the savvy strategies that I’ve outlined above, and you’ll be on a hassle-free path to growing your wealth in no time.

Chris Muller Author

Chris has an MBA with a focus in advanced investments and has been writing about all things personal finance since 2015. He’s also built and run a digital marketing agency, focusing on content marketing, copywriting, and SEO, since 2016. You can connect with Chris on Twitter @moneymozartblog.

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†Terms and Conditions apply.