Introduction to Tech-Savvy Personal Finance Management
Managing personal finances has never been easier, thanks to fintech — which is also why we love it so much. From budgeting apps to robo-advisors and expense-tracking software, here are five tech-savvy ways to manage your finances with less effort and more efficiency.
1. Automated Savings
Many banking apps have automated savings and round-up options, which are fantastic tools for setting aside cash when you need it. By automatically transferring a pre-arranged amount from your checking to your savings account, you can build emergency savings without even thinking about it.
78% of Americans live paycheck-to-paycheck, meaning they often have to wait for the end of the month to see if they set aside anything. This option takes out a small amount as soon as your pay arrives, meaning you’re more likely to build an emergency fund.
2. Budgeting Apps
Budgeting apps range from specialized apps dealing with one aspect of personal finance (savings or debt) to apps that let you see the big picture and track everything from your mortgages and bank accounts to your IRA.
With a good budgeting app, you can get real-time insights into your financial health and even receive overspending alerts. Look for features like transaction tracking, bill reminders, and financial goal setting, and you’ll get on top of your budget without breaking a sweat.
3. Robo-Advisors
FintechZoomPro can help you follow all finance and investing news, as well as analyze stock of major companies. However, that’s still a lot of information and it may be overwhelming for beginner investors.
That’s where robo-advisors come into play. These apps can give you investment suggestions based on your personalized investor profile, whether it’s conservative, moderately conservative, moderate, moderately aggressive, or aggressive. Once you sign up and complete a survey to determine your investment style and goals, the app will help you allocate assets to your portfolio. You can even find apps with very low initial deposits.
4. Mortgage and Debt Tracking
While banks often offer mortgage tracking tools, sometimes, it helps to get an independent app. Mortgage tracking apps and calculators can help you change your interest rate and play with your FHA, USDA, or conventional loan terms to determine your monthly payment.
These apps are excellent for shopping around for refinances, calculating how much you would save with a better credit score, or how much you’d benefit from an additional mortgage payment this year. You can also use many of these apps to track other debts, such as your car loans or personal loans, and get an overview of how much you owe.
5. Expense-Tracking Software
Financial experts often suggest tracking your expenses to assess your budget and find room for cutting costs. However, many people give up once they realize how much effort it takes to write down every single purchase.
Expense tracking software saves you from this tedious task by letting you scan receipts, record purchases, categorize expenditures, and generate detailed reports. This is particularly useful for business expenses, tax deductions, and overall financial transparency.
