Managing personal finances can get confusing and overwhelming. After all, it requires handling multiple bank accounts, setting budgets, tracking expenses, and remembering the dates for various bill payments. Those struggling with these tasks can use technology to make things easier. Several apps and digital systems are available that help manage money efficiently and avoid financial strain. That said, one must know how to use these digital tools to their advantage.
Automate expense tracking
A simple way to manage money better is to start tracking expenses. When someone makes expense tracking a habit, they get to learn where most of their money goes. It also helps figure out where they can cut spending. For instance, after tracking expenses for a month, one may realize they are shelling out way too much on unnecessary subscription services, coffee, or shopping. This may help them cut down on these expenses and save more.
Online expense tracking tools make it easy to monitor daily spending. Some popular apps in this category include PocketGuard, EveryDollar, Quicken Simplifi, and Mint. One can download an app that’s compatible with their smartphone and start tracking day-to-day expenses. Some expense tracking apps can be directly linked to a savings account, so there’s no need to enter all expenses manually. Furthermore, most budgeting apps and accounting solutions are cloud-based, meaning they can be accessed from anywhere. This makes them quite convenient to use. That said, when downloading an app, one must check whether it is free or paid.
Use online tools for budgeting
Saving money is important to become financially secure and tackle emergencies head on. The first step to saving is to create a budget. These days, creating a budget is convenient using budgeting apps and financial planning software. YouNeedABudget, Goodbudget, HomeBank, Moenydance, and Monarch are popular apps with several useful features, including savings goal trackers that make saving and budgeting easier. One can set daily, weekly, monthly, and even yearly saving goals using these apps and begin their journey toward financial security.
Set up automatic bill payments
Paying bills on time is one of the most difficult parts of managing personal finances. Missing even a single bill payment can add to one’s debt and make one liable to penalties. For instance, not remembering to pay a credit card bill can lead to late fees and overdue interest. Similarly, late fees may be added to utility bills if not cleared before the due date. All of these can easily damage one’s credit score in the long run.
Automating the bill payment process is a simple way to make life easier and avoid problems. Many digital platforms like Ally and Chime offer automated bill payment services. Even traditional financial institutions and banks such as Wells Fargo, Bank of America, and U.S. Bank have their own secure online banking platforms that support recurring bill payments. Every payment can be automated using these tools, from utilities to subscriptions and credit cards. This ensures users do not miss a due date ever again, giving them peace of mind.
Use mobile alerts and reminders
Besides setting automatic bill payments, one can use mobile reminders and alerts to avoid missing payment deadlines. Bank apps, as well as third-party digital personal finance management apps, let users set mobile alerts and reminders. Notifications are sent through text messages and emails to alert whenever payments are due, giving enough time to pay the bill before the deadline. To enjoy financial stability, it is recommended to set reminders and stay on top of all the due dates.
Get assistance from investment apps
Investing is an excellent way to grow money over time, meet long-term financial goals, and have a more secure future. One can invest in different assets like bonds, stocks, and ETFs. Several investment portfolio management apps and platforms help people invest and set up a portfolio. Acorns, Sharesight, Fidelity Investments, Betterment, and Robinhood are popular digital investment platforms with user-friendly interfaces and features that both beginners and experienced investors can use.
Investment platforms let people invest in various assets and even provide investment advice. Most have minimal fees and provide educational resources that help make better investment decisions.
Monitor credit scores digitally
Financial experts always stress the importance of a good credit score as it affects everything from interest rates to loan approvals and mortgage terms. This is why managing and monitoring the credit score should be a continuous and long-term process. Those looking to improve their credit score can use credit monitoring services and apps like Credit Karma, Experian IdentityWorks, Aura, and myFICO.
Digital apps make monitoring credit scores easy. They also offer insights into the factors that might directly affect the credit score. Many apps send out alerts whenever there are significant changes to the credit report. This helps to immediately take care of issues before they worsen and affect one’s personal finances.
