How Fintech Can Help You Manage Your Personal Finance Better
Fintech or financial technology is defined as any piece of technological innovation that aims to facilitate or moderate traditional financial methodologies and financial services. Fintech has gained a lot of popularity in recent times as people are beginning to see the potential of managing their finances on digital platforms. There are also many great applications that have made management of personal finance easier and more efficient than ever.
The rise of smartphone usage has also fueled the use and acceptance of fintech platforms. Concepts such as mobile banking, cryptocurrency and digital investments are also products of fintech and its accessibility in the general public. Fintech is a product of contributions from startups, banks, and financial institutions worldwide.
Fintech brings excellent tools for individuals looking to efficiently handle their finances – financial automation, bill payments and budgeting are some of the popular elements of personal finances that have been made easy to deal with due to fintech and its components. In order to ease their monthly schedules, individuals opt for such components of fintech apps such as automatic bill payments which decrease their monthly accounts from their payable bills and hence people are automatically left with the amount they are free to spend – hence ensuring that all bills are paid on time and that people do not overspend.
Listed below are a few ways through which fintech can help you manage your finances much better:
1. Fintech apps help you consolidate all your debt
People often fail to acknowledge and understand how much they are paying in bills on a monthly basis. In addition to that, they fail to keep track of their monthly payments and forget to pay all of their bills or loan payments – student loan payments, your living space’s rents, your insurance bills, your utility bills, and your Netflix and ZoomPro account’s bills, etc.
Fintech applications like Prism allow you to feed in data about your monthly bills, and pull them up at a later time to see how much you owe and when. This allows you to see a wider picture of all your upcoming expenses and hence you would be able to brace yourself and set a budget for the coming months in advance. Such apps also allow an individual to schedule and make bill payments and save themselves the hassle of making payments themselves on a monthly basis.
2. Fintech apps make budgeting easier
Many individuals complain and state that if budgeting was easier, they would be able to budget on a regular basis. They state that since budgeting manually is a difficult task, they forego budgeting mechanisms and techniques altogether, hoping that everything would eventually fall into place for them at the end of every month.
However, fintech applications such as Mint allow individuals to create budgets and comply with them using a user-friendly platform that is easy to plan and execute. Such applications work by connecting your bank account and integrating your financial information with them – the app then allows you to integrate that with your budget and allows you to set financial parameters for yourself.
Such apps allow an alert and notification function that sets out messages and reminders for you as and when you need them. If you are overspending in comparison to your stated budget, the app will instantly flag it and inform you likewise.
3. Fintech apps help you learn your spending habits
If you feel that you overspend in a certain category or spend a lot without giving it a lot of thought, fintech apps allow you to track your spending habits in overall and specific categories. Fintech apps have a lot of features that help individuals understand their spending habits, and individuals who wish to cut down their spending can track what they spend on the most and make an effort to limit such spending if it is not fruitful.
In addition to that, fintech apps allow individuals to have a proof of spending with them. Proofs of spending would be required in multiple case scenarios – for your own self and budgeting, or if you are looking to get reimbursements from your company or another party etc.
Fintech apps allow you to have proof of spending and do not compel you to manage and keep a record of your receipts and spending habits. Apps such as Receiptmate and Smartreceipt are very good when it comes to keeping a record and updating it for individual, personal and business receipts.
Fintech apps have made it extremely easy for individuals who are looking for help in their finances – whether you are looking to budget or track or facilitate, there is an app for everything. Fintech apps allow individuals to prepare and plan their monthly budgets and are especially recommended for individuals who are short on budget or are planning to save for a specific motive.
People who are retiring in the coming years also turn towards fintech apps to track and project their investments and understand how much they would be earning or saving in the coming years to help them track money and savings for their future.