Whether you are a business person, an employee, student, or freelancer, personal finance management is among the basic ingredients of success. You need to plan and manage your finances well so you can meet your needs and avoid major inconveniences. Thanks to technology, monitoring your income, savings, and expenditure is incredibly easy these days. Many tools are available to help you with these as well as managing your investments.
The Growing Use of Technology in Keeping Track of Finances
In this piece, we shall look at a few major ways the growing use of technology can help you keep track of your finances.
1. Increased Saving and Investment Options
In the olden days, the bank was the only place you could save with certainty. Modern-day technology has made it possible for people to save and multiply their finances with ease. One of the common options available is through trading and other investment platforms available today.
These allow trading in stocks, bonds, and other valuables. The advantage of these money engines is that you get to calculate your expected earnings. It also gives you a projection of your account, which is an indicator of your financial position. Knowing your financial position guides you in making financially sound decisions.
2. Cash Back Cards
Investments aside, the competitive age we live in allows you to earn savings from spending. For instance, many grocery stores have a reward point system where you earn points for each purchase you make. The rewarded points go into a cashback card and can be used to make future purchases.
If you are looking for money saving ideas, a cash-back credit card can be worth your while. The earned points can also be redeemed and transferred to your bank or used for statement credits. They can also help you keep track of your spending while serving as a personal finance management tool.
3. Automation of Operations
You have most probably watched someone pull their hair out at the end of the month with a table full of bills. Going through the stack is not an easy process. It is this scenario that has led to late payments. Most often this attracts penalties which increase the financial burden. Luckily, with automated billing payments, you can lay these worries to rest.
This is achieved by setting scheduled payments that will automatically be transacted at a particular date or when certain criteria are met. This saves you a lot of time and possible headaches. Automated services also make it possible to receive financial advice from various sources at low fees. These services were previously accorded to the wealthy since they involved hiring a financial expert. Therefore, technology has made getting support and performing payments easy.
4. Access to Quick Budgeting
Poor budgeting has landed people into serious financial crises. This is when you end up overspending on certain items at the expense of others. The process is more nerve-wracking if you are using paper and pen to do the calculation. Besides, humans are prone to error, especially when dealing with many figures.
However, technology has made this process easier. By using budgeting software, it organizes all your expenses and transactions. The report from this can be used to make budgeting decisions. This gives you peace of mind since you are sure your pockets won’t run dry mid-month. It also helps you increase savings because your expenditure is managed.
5. Use of Mobile Banking
Technology has made it possible to perform banking operations at our comfort. Gone are the days when you spent hours in bank queues. By installing a banking app, you can access all your account information without a hustle. You can perform transactions like money transfers and deposits without visiting a financial institution.
The time-saving aspect is perhaps one of the best perks of mobile banking today. Besides, it makes it possible to notice suspicious activities or errors in your bank account. This improves your response time and chances of recovering your money in case of a fraudulent transaction.
6. Enhanced Price Comparison
If you are like many people, most of your finances probably go to the purchase of products and services you need. To avoid overpaying or unnecessary spending, price comparison is paramount. However, the traditional price comparison approach where you have to hop from store to store can be utterly exhausting.
With technology, on the other hand, you do not have to break a sweat to get the best deals in the market. Online shopping offers products and prices online, so you can do it right from the comfort of your home. In addition to getting the best deal, you also get to save on gas money while saving time and effort.
Technology has come a long way, and we can only wait to see what the future holds. When it comes to financial management tools, you will be spoilt for options and perhaps confused on which one to pick. Keeping track of your finances has never been this easy, especially if you determine and understand your specific needs.