How Tech Can Help You Take Control of Your Finances
Around the world, the pandemic continues to take an economic toll on countries and communities. With the Financial Times highlighting rising unemployment rates, plus more businesses closing their doors, individuals now must be smarter with their finances.
Over the course of the lockdown, technology has helped businesses stay afloat through e-commerce, kept families connected through social media, and even allowed offices to keep operations going through remote working platforms. Likewise, technology can also put you back on track with your fiscal goals during this precarious economic period and beyond.
So below, we have listed a few ways technology can help you take control of your finances.
Automate Basic Processes
One way you can commit to being more disciplined with your finances is by automating basic processes. Not only is this more convenient but it’s also an easy and efficient way to save money. You can start by setting up mechanisms that will automatically deposit a portion of your paycheck every month to a high-yield savings account. Bankrate lists several digital apps that automatically transfer set amounts to your savings accounts, such as Digit and Dobo.
Another way automation can help you save is by doing the legwork by paying for bills and credit fees. This can save you from spending on any penalties or late fees, which can add up without you realizing it.
Track Your Income and Expenses
An essential part of taking control of your finances is knowing where your money is going. Taking note of your income and expenses can empower you to make better financial decisions. Are you spending too much on food eating out? Are you spending too much on clothes? You’ll know the answer to these questions if you start paying more attention to your monthly spending habits.
While you can do this manually, using apps can make this process more convenient. Case in point: The Insights function on the Petal Card app aims to boost transparency about where exactly your money is going. Additionally, it features a Spend Planner that discourages you from overspending by assigning a monthly budget to yourself. Putting a cap on your spending can be quite helpful, especially for individuals who are prone to over-spending and making impulse buys.
Make Informed Decisions
The internet has a wealth of information available, including financial tips, mistakes to avoid, and even guides on how to get into investing. Taking advantage of these resources can empower you to make educated decisions, especially as not all apps may be as helpful as they promise to be. For one, NBC News reports that scams on Venmo, Zelle, and CashApp have been rampant.
Even personal loan apps like Kreditbee are known for charging extremely high interest rates, which can do more financial damage in the long run for users who may not think they have better options. At the end of the day, it’s critical to be responsible before diving into the next fintech app and entrusting it with your money.
Predict Market Trends for Investments
CNN highlights how artificial intelligence and machine learning are being used by financial institutions to help predict market trends and decipher how potential investors will be spending their money. If you’re just getting started with investing, these movements are important to ensure you’re making a smart choice—whether you’re buying real estate, stocks, or shares in a business. Apps like MarketWatch, Forbes Intelligent Investing, and AnalystRT are worth checking out.
Whatever app you choose to use, you have the final say when it comes to your financial decisions. With that being said, you owe it to yourself to use all the resources at your disposal to ensure that you make the right call when it comes to your personal finances.