Most people know they can schedule some of their monthly expenses to be deducted automatically from their bank account, and that some service providers even offer discounts to customers who use autopay.
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They probably also know that most experts advise picking and choosing which bills to put on autopilot because it’s safer to pay some the old-fashioned way.
But one entrepreneur took the efficiency of autopay to the extreme by scheduling every one of his obligations to pull from his bank account automatically every month without his human final review no matter what kind of bill it was.
Here’s what worked, what didn’t and what his experiment taught him about budgeting.
Is There Such a Thing As Over-Optimizing Your Finances?
Dmitriy Shelepin is the founder, CEO and head of search engine optimization (SEO) at MiroMind, an agency that helps businesses improve their organic search, drive relevant traffic and convert it into qualified leads.
A natural hound for efficiency, Shelepin saw an opportunity to apply his skill at optimizing search and social to his own financial life by automating every single one of his monthly expenses.
But personal finance is different from digital strategy, and putting all your bills on autopilot is a radical departure from best practices according to mainstream financial advice.
Here’s what Shelepin learned from his extreme experiment in budgetary streamlining.
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In Terms of Cost and Convenience, There Was Plenty To Like
Shelepin’s experiment yielded mostly positive results. First, he enjoyed an unprecedented level of convenience by putting all his bills on autopilot while also dodging the personal finance landmines of missed payments and the penalties they bring.
“Autopay helped me save time and money,” said Shelephin. “I don’t have to worry about forgetting to pay a bill, and I can avoid late fees and penalties.”
On top of that, he was surprised to learn that autopay helped him stay on budget.
“I can see exactly how much money is going out each month on recurring expenses and I can make sure I have enough money in my account to cover them,” he said.
Shelepin also believes removing the human factor helped him rein in unintended spending.
“When I don’t have to think about paying a bill every month, I’m less likely to make impulse purchases that could derail my budget,” he said.
The Experiment Produced Other Positive Side Effects, Too
Although some providers offer an autopay discount, the primary benefit of setting and forgetting is that it eliminates the monthly chore of paying bills — but Shelepin’s experiment yielded other advantages, as well.