Every month, you have a budget of ₹50,000, but somehow expenses seem to run wild, leaving you wondering where your money went. Let’s say your rent is ₹15,000, groceries take ₹7,000, and bills eat up another ₹8,000.
Add in some travel and personal expenses, and suddenly, you’re way over budget! Here’s where financial automation tools come in to simplify things and keep track.
According to a study, about 69% of Indian households cannot stick to a monthly budget, making automation a lifesaver. Understanding your monthly finances is crucial if you’re considering a personal loan in Mumbai to cover unexpected expenses.
What Are Financial Automation Tools?
Financial automation tools are apps or software designed to help you manage money effortlessly. These tools allow you to link bank accounts, track expenses, set spending limits, and even automate bill payments.
For example, using apps like Money View or Walnut, you can categorise expenses like rent, utilities, and groceries. Why use them? They’re a hassle-free way to monitor cash flow and ensure every rupee counts.
Setting Up Automated Budgeting and Expense Tracking
Start by linking your bank accounts and credit cards with a financial app. Most tools categorize your spending automatically. Say you spend ₹3,000 on dining, ₹2,500 on petrol, and ₹5,500 on personal shopping; these will be auto-tagged in separate categories.
Now, you can see exactly where your money goes. For instance, if you realise you’re overspending on dining out, you can set alerts to keep that in check.
The table below shows an example monthly budget breakdown:
| Category | Budget (₹) | Actual (₹) |
| Rent | 15,000 | 15,000 |
| Groceries | 7,000 | 8,000 |
| Utilities | 8,000 | 7,500 |
| Dining Out | 3,000 | 4,000 |
| Shopping | 5,500 | 5,000 |
This way, you get a complete snapshot of your finances, helping you make real-time adjustments and track deviations instantly.
Automating Bill Payments and Setting Reminders
Nobody likes the hassle of missing bills and paying late fees. Financial tools can automate recurring payments. For example, setting up auto-debits for your utility bills of ₹2,500, mobile bills of ₹500, and a loan EMI of ₹6,000 every month means you’re not juggling deadlines.
Additional tips:
· Set reminders for bills not on auto-pay, like credit card bills.
· Monitor for any new charges on your accounts that weren’t expected.
Adjusting Monthly Spending with Automated Alerts
One valuable feature of financial tools is setting up alerts. Imagine if you set a dining budget of ₹3,000 but spent ₹4,500. You’d get an alert when you cross that limit. Alerts allow you to catch overspending early.
Let’s say you set a petrol budget of ₹2,000, but prices go up, and you’re spending ₹2,500—an alert could prompt you to adjust your travel or take a public commute.
Automating Savings Contributions
Many financial tools allow you to automate savings. You can set it up to automatically transfer ₹2,000 each month to your savings account or an emergency fund.
Some apps even offer a round-up feature, where every transaction rounds up to the nearest ₹10 and puts that difference into savings. If you purchase ₹195, the app rounds it to ₹200 and saves ₹5. It’s a small amount, but it adds up quickly.
Conclusion
Financial automation can transform how you manage money and stay within budget, all while avoiding costly surprises. With tools like these, managing your monthly expenses is no longer a chore.
And remember, if ever in a crunch, a personal loan in Mumbai can be a quick solution—but make sure your finances are in control first. So, why not try these tools and see where they take you?
FAQs
1. What are financial automation tools? Financial tools that help manage expenses, automate payments, and track budgets.
2. Can automation help save money? Yes, by preventing overspending, catching mistakes, and automating savings.
3. Do I need a budget to use automation tools? Not necessarily, but having one helps track and manage your spending better.
4. Can I use these tools if I already have a personal loan in Mumbai? Yes, they help track EMI payments and effortlessly ensure on-time payments.
