3 ways in which technology helps you manage your finances better

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Technology has truly revolutionized our lives in so many ways. Today, there’s practically very little you cannot do digitally or online. Ordering your groceries, looking up recipes, learning new languages, checking up on the news, managing your work, and even taking virtual tours to faraway places - all of this is now possible, thanks to the rapid technological advancements we’ve seen over the past few decades.

Personal finance is among the many areas that technology has transformed. Here are some of the ways in which you can manage your finances better:

Automation of payments and savings

Considering the fast-paced lifestyle that is prevalent today, everybody is busy. There’s very little time to spare, and in the hustle of everyday life, it’s not uncommon for people to forget to pay some bills or add to their savings as planned.

If you’ve ever missed a premium payment on your insurance policy, or if you’ve ever forgotten to pay a utility bill, you’ll understand how common this is. And even if you do remember to make your payments, it can be challenging to get things done amidst a busy schedule.

But with the advent of automated solutions, this is no longer a problem. Automation technology ensures that the amounts due towards any payments or savings are automatically deducted from your account on the due date. This not only ensures that you promptly pay your bills or save up as planned, but also helps you avoid any penalties or interests on late payments.

Here’s a preview of some transactions that you can automate.

Your credit card dues
Your electricity bill payments
Your loan EMIs
Your insurance premiums
Your telephone bill payments
The SIP amount for your investments
The costs of your online and offline subscription plans

Online banking solutions

The banking sector in India has come a long way in a short span of time. You no longer have to physically visit the branch of your banking partner for every request or requirement. With the advent of online banking solutions, you can now take care of most of your banking requirements from anywhere, without any hassle. In fact, the online and digital banking market is expected to grow at a CAGR of more than 22% by 2024.^[1]

Developments in the banking sectors have now made it possible to access most conventional banking products and services online, since all leading and upcoming banks have their own websites these days. In addition to that, many top banks have also launched their own mobile banking apps, so you can carry out transactions and access banking services from your smartphone itself. This makes it easier to manage your money and bank on the go.

Here’s a glimpse of what you can do with online banking.

Keep track of your bank accounts and bank balance
Pay your bills
Set up direct debits for automated payments
Transfer funds to your beneficiaries
Avail home loans, personal loans, vehicle loans and other kinds of borrowings

Digitized budgeting and investing

Like banking, investments and budgeting have also been digitized greatly in recent years. Budgeting is crucial to money management because it gives you greater clarity on how your money is being spent. Budgeting makes it easier for you to track your spending habits, identify discretionary spending, and consequently save more each month. One can use many application based tools available or simply MS excel to begin with.

It is important to stay updated with the trends when it comes to budgeting, as allocation of your income and planning your expenditure is an important skill that needs to be honed. It is advisable to earmark a part of the monthly budget primary expenses like rent and household bills, food-related expenses, any fee amounts and medical necessities and allocate for the same. Depending on your income you can even allocate a suitable amount for any leisurely activity you have in mind. After this consider saving and investing a portion of the income. This is more just a precautionary measure in the current times. The limits to each of the components can be earmarked on any Personal Finance Management online or application based tool.

You can even align your investments with your goals and build a portfolio that includes financial products that give you the kind of returns you expect in the short term and long term. By combining these tech solutions with online banking and automated transactions, your money management experience comes full circle.

Online Payments

Transfer of money online makes tracking and finding insights into spending patterns easier, both digitally and manually. Using UPI based options like-Pay your Contact, Scan & Pay make the process simpler with only 2 or 3 steps. The option of adding a debit card to your UPI account brings more flexibility and these options are available on Banking & Payment apps.

Summing up

If you haven’t tapped into any of these solutions yet, the time may just be right to embrace technological tools and improve the way you handle your finances. And in case you’re unsure of how to go about planning your investments or managing your money, you could always consult a financial advisor. Of course, you can do even this online, from the comfort of your own home, all thanks to technology!

3 ways in which technology helps you manage your finances better

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