Technology has brought incredible changes to people's financial lives. In the past, handling monetary transactions relied primarily on physical currency, checks, and in-person banking. Likewise, seeking financial advice would require consulting a financial advisor or a nearby bank.
However, the rise of online shopping, digital wallets, mobile banking, cryptocurrencies, and robo-advisors has redefined how we manage finances. Mastering money management today involves learning how to use various digital financial tools effectively.
This article will guide you through spending and saving like a pro in this digital age. But before delving into that, let's first examine how technology influences financial decisions, mainly when using money.
How Technology Is Influencing Your Spending Habits
It's necessary to pay attention to the influence of technology on consumer's financial decisions. These days, you no longer have to go out to spend your hard-earned money. You can now shop for items online.
With a few clicks, you can access endless information about a specific product and make a purchase without visiting a physical store. Convenience and time efficiency are the primary advantages here. However, the downside is the higher risk of impulsive buying behavior.
You're more likely to make impulse purchases because of targeted advertising. For instance, algorithms on social media pick and present ads they think you'll find interesting. Knowing how technology affects financial behavior is the first step to becoming a smart spender and saver.
Spend and Save Like a Pro in the Digital Age with These Tips
When it comes to money management, technology can be your friend or foe. Now that you understand the potential risks, exercise caution when using any digital tool to maximize the benefits.
Traditional money-management habits like spending and saving remain indispensable in this digital age. Learning to employ them with modern technology can help you get the most out of your money. Consider the following tips as a starting point:
Schedule financial obligations with a calendar app.
Managing financial obligations can be an uphill task. With a calendar app, you can adequately prepare for your upcoming income and expenses. Relying on a simple list may make you forget about paying bills or overlook overdue payments. This can result in additional costs.
With a calendar app, you can plan your financial obligations and note the amount due. Managing your bills is easier this way since the calendar allows you to set automatic payment reminders. It also gives you a clear view of your financial commitments over several weeks.
Leverage a budgeting tool to track your income and spending.
Creating a budget is imperative for anyone aiming to be a savvy saver and spender. Some people only use their banking apps to oversee their budgets. However, there are tools designed explicitly for budgeting.
A budgeting tool can offer the functionality necessary to track your income and spending. Unlike a simple spreadsheet, you can automate your budgeting with an app for a certain period, such as monthly or quarterly.
With a budgeting app, monitoring expenses and planning your budget will be more manageable since you don't have to enter them manually. You can also conveniently see your spending by connecting the app to your bank account.
Set up automatic payments using online banking.
Setting up automatic payments can help prevent missing overdue bills and incurring associated fees. Since you know exactly when funds are coming out of your account, managing your budget and spending is easier.
Besides ensuring everything is paid on time, automatic payment eliminates the need to process financial transactions every month manually. You can schedule an automatic bill payment using your online bank account. Setting up autopay through cloud-based accounting software and a vendor's website is also possible.
Utilize digital wallets to access discounts and rewards.
You can utilize digital wallets to make purchases online or in physical stores. Most digital wallet providers offer exclusive discounts or rewards with retailers or outlets accessible only to users.
You can gain reward points for every purchase you make using digital wallets to pay. Note that many shopping apps may have integrated payments with your digital wallet. Hence, it's also possible to access store-specific discounts and rewards.
Boosts your savings with automatic transfers.
Daily demands sometimes make it difficult to allocate funds regularly. Automatic transfers are the way to go if you want to save like a pro. Many online banking apps have automatic transfer features. Alternatively, you can opt to link your bank account to a savings app.
When opening a bank account, take the time to compare the features of a chequing vs savings account to ensure it meets your financial needs and goals. A chequing account is an excellent option for everyday transactions, whereas a savings account is for funds you intend to save.
Whichever way you choose, automatic transfers can help you save money consistently over a predetermined period. Another good thing about these transfers is that they allow customizing them to suit your budget and savings goals.
Put your investments on autopilot.
You can also put your investment contributions, like savings and bill payments, on autopilot. Since the funds are automatically allocated to your portfolio, it minimizes the temptation to spend them on something else. Likewise, it helps prevent you from making impulsive decisions during market volatility.
Use a comparison shopping engine to make informed purchases.
Making informed purchases is crucial, especially in this digital age, where you can easily access various products and services. Using a comparison shopping engine helps you do that.
This online tool lets you compare different products based on their prices, features, and reviews. Instead of depending solely on impulse buying or marketing claims, you can find the best deal and make well-informed purchasing decisions.
Take Better Control of Your Money Using the Right Digital Tools
Technology can have negative or positive impacts on your financial health. But with the abundance of available budgeting tools and resources, you can control your finances better. You no longer have to spend hours crunching numbers and looking for financial statements.
You can use a range of digital tools to track your spending, maximize savings, and achieve other financial goals. Take the time to examine your needs and priorities before committing to them. Doing extra research can help you avoid downloading unnecessary tools that won't benefit you.
