Automating bill payments, savings can help keep budget on track and late fees at bay

Constantly keeping track of bills, savings and investments can be exhausting and feel like yet another chore in an already busy life.

But there is a way to take some of the work off your plate: automation.

“It’s my best advice for staying on track with any financial goals, whether that’s saving up for something, paying down debt or just keeping orderly with your cash flow,” said Cindy Marques, certified financial planner and CEO of MakeCents.

Automating your finances generally means setting up automatic payments for bills and recurring investment or savings deductions from your bank account. It may sound tedious to set up but once most bill payments are automated, experts say it can bring structure to your finances and set your budget up for success.

“It goes a long way to automate things and make your life easier,” Marques said. “Even if you’re quite a proactive person, it just makes it easier to stay on track and ensure that you’re making progress toward your goals.” 

She said it takes away the ability to negotiate with yourself. For example, people with a spend-first mindset might put off savings contributions. But if that amount is automated, it is easier to think of it as a bill. 

“You just get it done,” she said. 

Another benefit is avoiding late fees or charges on bills and credit cards.

Marques said anything from rent to utilities to savings to investing can be automated. For variable bills, such as a credit card, she suggested automating the credit card bill payment at a minimum amount and paying off the rest manually each month.

But automation doesn’t replace the need for budgeting.

Budgeting will always be a key pillar in personal finance planning, said Michael Bergeron, certified credit counsellor and manager at Credit Canada.

“The automation just supports. It’s a strategy that helps us stay within our budget,” he said. 

For example, if you’ve paid off your debt, that money can now be automated to allocate elsewhere, such as savings or investments — and that insight only happens when you keep up with your budget.

However, many people don’t know how to automate payments. 

Bergeron said the first step to automation is having a structured budget, which caters to needs, wants and other priorities.

“Once we have a structured budget in place, then we can look at what are we going to automate,” he said.

Marques said a simple way to know what can be automated is by listing all your fixed recurring expenses, such as rent or mortgage, car insurance and phone bill, among others. Then, look at the days you get paid and start aligning bill payments and savings to your paydays. 

For example, fixed payments, such as rent, can be aligned with the paycheque that comes in right before the due date and can be set up for automatic deductions.

Most recurring payments for bills and savings can be easily set up with online banking platforms or utility services such as network providers or insurance firms.

Bergeron said people still need to keep a close eye on their bank statements to make sure there are no double charges, technical errors or overdraft charges. Also, some automation setups may have an end date, which means you’d have to reset the payments.

“If you don’t pay close attention to that, then obviously some missed and late payments could take place,” he said.

It’s likely not possible to automate all your variable expenses, such as grocery bills or fuel expenses.

“There will always be some form of money management structure that you have to manually take the lead on to make sure we’re following our budget to the best of our capabilities,” he said.

While automation is likely to work for most people, Bergeron said it could be challenging for those who aren’t technologically savvy. He said if there’s a barrier, he doesn’t recommend automating finances until they understand the value and benefits of it.

“But for the majority, it is a highly valued benefit for most people,” Bergeron said.

This report by The Canadian Press was first published Jan. 6, 2026.