4 Ways Technology Can Make Your Financial Life Easier

A lot of self-help gurus and motivational speakers are using the concept that if you live anywhere in the first world, have a phone and access to the internet, and are savvy enough, nothing will prevent you from becoming a millionaire. While this is technically true, it’s really not how it works out for a lot of people in reality.

Still, there are so many basic things you can do with your phone and a connection to the internet, like get a budgeting app, find an online bookkeeper, enroll in a financial course, and even buy stocks from your living room. The world is your oyster, and here’s how technology can make your financial life a lot easier.

source

1. Get a budgeting app

The majority of people really struggle to keep track of their expenses. Sure, they know how much their rent costs, the approximate cost of utilities for that particular month (based on previous years), and even the cost of their commute, but what about other expenses?

Sure, tracking one subscription is easy, but what when there are so many subscriptions that you cover on a weekly, monthly, and quarterly basis?

What about all the money you spend from your pocket buying that candy bar or coffee while on a break? While these costs may sound minuscule to you at the moment, these costs accumulate rather quickly.

With the help of a budgeting app, you’ll be able to automate expense tracking and even get some invaluable insights. By learning how much money you spend on each of these expenses, you’re actually giving yourself a chance to rectify your habits in a way that will achieve maximum impact with the minimum sacrifice made on your part. 

These apps are also amazing when it comes to analytics. Namely, you can use them to learn which categories are represented in what percentage when it comes to your spending. You can also use them to see how your spending habit evolves over time. As you make an effort, the numbers are supposed to show it. The same goes when you spiral out of control.

Also, if you’re running a household budget, by having an app, you’ll get a better idea about the spending habits of others in the house. This is the only way to make a real difference. 

2. Download an investment app

Investing is a way to increase your assets without investing active work to do so. This is important because invested money, if invested right, makes money even when you sleep. With jobs, there’s always a point past which you have no more time or energy.

Now, why is an investment app the way to go? It’s simple: by downloading a stock trading app, you’re eliminating the need for an intermediary. Even if you pay a monthly fee, this cost is a lot lower than you would have to pay for a professional broker in the past.

Most importantly, you get the privilege of trading from your own home without ever having to make a call to execute it. As long as your phone is in your hand, you have all you need to execute any trade. 

Most of these platforms are made with a UI adaptable to people who want to trade for a living and those who are just interested in trying out trading. In other words, the mastery cap is pretty high but it doesn’t take too long to just figure out how to use it.

All of these top-tied investment apps have an automated investing option. With the emergence of AI, robo-advisors and automated investment features have been more reliable than ever before. Now, a tool can analyze the available data, you get market insights, and you can freely use these resources to your own benefit.

Not to mention that these trades are programmable, which means that you can set stop orders. 

3. Outsource your bookkeeping

The next thing you should definitely consider is outsourcing your bookkeeping. 

Regardless of how good you are at finance, unless you’re a professional accountant or a bookkeeper, it will take you disproportionately much time to handle all your bookkeeping. This is the time that you’ll either have to borrow from your money-making activities or from your own free time, neither of which is ideal.

Sure, doing this via the right tool is much easier, but if your financial processes are more complex, you’ll still have to deal with an advanced accounting platform. These platforms are made to be intuitive, but they’re also made to be used by professional accountants.

It’s also important to understand that the result will never be as good as if you were to delegate this task to a trained professional. Proficiency comes with experience, and since financial transparency and tax issues carry legal hazards, it might be a good idea to stay safe by outsourcing to a professional.

Now, if you’re running an enterprise, chances are that your transactions are too numerous and your financial processes too complex. Therefore, outsourcing your bookkeeping allows everyone to focus on core tasks and carry on with their work. 

Most importantly, hiring a bookkeeper gives you a simple and reliable way to get to know your cash flow inside and out. It means knowing exactly how much money you have at your disposal and even getting some tips on how you should, best/most efficiently, spend it. 

4. Online courses for higher financial literacy

Becoming more financially literate is an ongoing process. People study finance all their lives, and they’re really never done. Sure, it shouldn’t take you too long to figure out some of the basic terms and processes, and if you’re not working in the accounting field, you can figure out what you need relatively quickly.

Ideally, you would embark on a few basic courses and read a few textbook samples explaining the most important things you need. Then, you can either enroll in a course or find a specialist to hire for a few one-on-one courses. Here, you can ask any questions that you may have.

So, why is this a never-ending process and not a one-and-done thing? Well, fifteen years ago, there were no cryptocurrencies, and today, they’re a major asset. People use them to pay and receive salaries in Bitcoin, and, a few years back, one could even get an impression that traditional assets no longer exist - that it’s all crypto.

Previously, we’ve talked about budgeting. Well, the concept itself was the same even in the Middle Ages. In practice, however, thighs are a lot different than they were just fifteen years ago. Think about it: back then, no one used budgeting apps, there were not so many subscription services (while today it’s all SaaS), etc. 

If the world of finances can evolve so drastically in just a decade and a half, keeping up might be harder than it seems. 

Reliance on technology can completely revolutionize the way you handle your finances

In the end, you should use your phone for more than just browsing social media and playing mobile games. With just a few apps (budgeting, online exchange, etc.) you can completely transform your finances, and you don’t have a single good reason not to do so.