The easiest trick to saving more money while you sleep

As an evergreen financial and wealth student, I am always on the lookout for new ideas, tips and time saving ways to manage my finances. One tip that many wealth builders apply is using an automated standing order. This tip allows me to build wealth by significantly reducing the hassle that is required to manage my funds. ​​

Set up Automated instructions for your funds to grow wealth and meet your goals

H​ow do I use an automated Standing order?

Every month when I receive my salary, I have set up instructions to my bank to automatically allocate a given amount to multiple asset classes. For example, If i receive £100 on the 30th of each calendar month, the minute the £100 reaches my account, my bank automatically sends:
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£8   to my emergency fund
£10 to my  P2P account
£20 to my  H2B ISA
£17 to my  Mutual fund account
£10 to my  LISA
£5 to my  travel account

£30 remains in my bank account to cover my expenses


Out of Sight, Out of Spending Mind

Allocating my funds in this manner allows me to effectively meet my monthly or annual financial goals. In this scenario, I am applying out of sight, out of spending mind.  It is very easy to be tempted to spend when you do not have a plan for your funds and I have chosen to be structured and disciplined with my own goals.

You may say, but I can do this every monthly manually and that is ok if it is helping you reach your own goals. Using this easy tip, has allowed me to be very careful about unplanned spending. If you find that new reasons arise where you want to spend the money you want to allocate to  your asset class, it become very easy to derail your goals.


The Surprise

After doing this for a while, you'll find yourself checking one of your accounts surprised at the amount you have accumulated without having to do too much. This is exactly the experience one of my friends described- 'every month, I send £50 to my savings account and at the end of the year, I go and look at it and £600+ is just sitting there and I do a little dance'. 

How can you set-up your automated standing order

The great thing about an automated standing order is that the hard work takes places only at the beginning when your set up your instructions. There are many ways to set up your own automated instructions and it takes only a few minutes. 

1. Identify how much you want to allocate to your asset classes

2. Contact your bank and set up your instructions. You will need the receiving bank account details. Alternatively, you can set up your instructions via online banking or your banks' phone App. 

3. The typical details you'll need to complete your automated instructions:

Bank details of your receiving account
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The date when you want the instruction executed (make this the day you receive your salary)
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Amount to be allocated




​Automated standing orders is a great  and easy tool that allows me to build wealth over time with the right discipline. Remember, you can always amend your instructions to match your plans.