Financial management is a challenge for many people. According to a study by the National Foundation for Credit Counseling, 62% of people would struggle to come up with $1,000 in an emergency.
But technology has revolutionized the way we manage our money. There are now a variety of different ways that you can use technology to help you stay on top of your finances. We no longer have to rely on paper and pencil to keep track of our spending. There are several different apps that you can use to help you manage your money.
Here are some of the most popular ways to use technology to manage your money:
1. Use it to track your spending.
There are several different apps that you can use to track your spending. This can be a great way to see where your money is going and change your spending habits. For example, you may be spending a lot of money on coffee. If this is the case, you may want to cut back on your coffee habit.
An excellent app to track your spending is Mint. Mint is a free app that allows you to connect all your financial accounts in one place. This includes your bank accounts, credit cards, and investment accounts. Mint will track your spending and give you insights into where your money is going. You can also set up budgets and goals in Mint.
2. Use technology to manage your bills.
Paying bills can be a hassle. About 44% of Americans say they have missed a bill due to forgetting about it or not having enough money. This can lead to late fees and damage your credit score. Penalties for late payments can add up quickly.
Luckily, a few different apps can help you manage your bills. You can use an app like Mint to track your bills and see when they are due. You can also set up reminders in the app, so you don’t forget to pay a bill.
You may also automate your bill payments, so you won’t forget to pay your bills. Many banks offer this service. You can also set up automatic payments through some bill-paying apps. All you need to do is set up the app and link your bank account. The app will then make the payments for you.
3. Use an app to connect with lenders.
Sometimes, you may need to borrow money. This could be for an emergency expense or a large purchase. If you have good credit, you may be able to get a low-interest loan from a bank. But if you have bad credit, you may not be able to get a loan from a traditional lender.
Luckily, there are a few different apps that connect you with lenders. These apps allow you to get a loan even if you have bad credit. The interest rates on these loans are usually high, but they can be a lifesaver in an emergency.
Homebuyers can significantly benefit from these apps. Even if they have bad credit, they can get a loan to buy a house. The interest rates on these loans are usually higher than conventional home loans. But if you have bad credit, this may be an excellent option.
4. Use it to invest your money.
Investing your money can be a great way to grow your wealth. But it can be challenging to know where to invest your money. There are a lot of different options, but the risks can be high.
Technology can help you with investment decisions. For example, you can use an app like Acorns to invest your spare change. Acorns will round up your purchases to the nearest dollar and invest the difference. This is a great way to start investing without taking on too much risk.
You can also use an app like Robinhood to invest in stocks. Robinhood is a commission-free stock trading app. This means you can buy and sell stocks without paying significant fees. This can be a great way to save money on investment fees. But you still need to be careful with your investment decisions, even with a commission-free app.
5. Use it to save money on groceries.
Many people spend a lot of money on groceries. The average American spends about $7,000 per year on food. That’s a lot of money! But a few different apps can help you save money on groceries.
For example, Flipp is an app that allows you to browse weekly grocery store flyers. This can help you find deals on the items you need. You can also use apps like Ibotta and Checkout 51 to get cash back on groceries. These apps offer rebates on specific items. All you need to do is upload a photo of your receipt to receive the rebate.
Technology can be an excellent tool for managing your money. Many apps and websites can help you save money, invest, and stay on top of your bills. You just need to find the right tools for you and your financial goals. With a little bit of research, you can find the perfect money management solution for you.