In today’s digital world, technology has changed the way we do almost anything. It impacted how we work, communicate, study, get entertainment, and how we manage our money. More precisely, technology has changed the ways in which people budget, spend, save, send, and borrow money.
Smartphones, the Internet, and various technological advancements have led to the development of very techy financial tools that help people keep on top of their finances a lot easier and quicker. People no longer have to visit physical, financial institutions, calculate budgets, or even take their wallets with them when going shopping. There’s a technological solution for everything related to how you manage your money, whether you need to make payments, track your spending, invest, or borrow money.
Here are the ways in which technology has changed how we handle our personal finances:
We budget our money on budgeting apps
Budgeting is not a new concept of managing personal finances wiser and more efficiently. Yet, it was only about a decade ago this term got really popular among average people. What changed? The rise of budgeting apps in our smartphones’ digital stores.
A budgeting app does all the hard work for people who want to keep track of their earnings and spending. They even allow users to separate their spending into different categories, like rent, housing, transportation, food, insurance, clothes, technology, services, health, and more.
Budgeting apps allow users to introduce their income and track their spending so that they properly keep track of what they are spending their money on. This results in better awareness of one’s spending habits and can help with learning how to prioritize expenses.
We use apps to check out bank accounts
Decades ago, you had to take trips to banks and, later, nearby ATMs, to see how much money was left in your bank account. Well, not anymore.
With just a few clicks, you can now see precisely how much money you have in your bank account, your transactions and where you’ve made them, your savings, and how much money you received. So, information about your personal finances is LITERALLY at your fingerprint.
We get loans online
It has never been easier to lend money when you need it than now. Thanks to technological advancements, people who need some financial support can get a loan in just a couple of clicks. If you need to research loans in Canada, you can do so easily online and see which one meets your needs as well as for which type of loan you are eligible.
If, more than a decade ago, getting a loan meant visits to different financial institutions to compare loan rates and choose the most advantageous loan option, people can now do that online, from the comfort of their own home. Today, you can apply for a loan online and even get an instant decision.
We invest in digital money
The way we invest our money has also changed significantly since technology has become an integral part of our lives. Digital currencies, stocks, assets, and all types of investments are now options for people who want to invest and grow their earnings.
We are no longer limited to physical and traditional investment choices such as real estate; digital and alternative investment methods are also on the table thanks to technology.
Technology has also made investment an option for everybody. Back in the days, before technology was so widespread as it is today, investment was a game that only powerful financial institutions and people from the upper class could play. Today, anybody can invest in all sorts of things as long as they have a device and a strong Internet connection.
We transfer money faster
Money transfers have also been influenced by technological advancements. Think about it: nearly a decade ago, transferring money to another account, especially to an account from abroad, could take several days. Today, money transfers are instant. Fintech solutions are at the center of how fast we are able to transfer money these days.
Whether you want to transfer money to your friends or family, you can easily do so from your mobile device and be sure that they will receive it within seconds. Paying back your friend after splitting a restaurant bill has never been easier or faster!
Most money transfer services, even those offered by traditional financial institutions, even allow you to send money to people in your contact list using nothing but the contact’s phone number. In other words, you don’t even need to know or introduce a person’s bank account for them to receive money. As long as you know their phone number, that’s the only information you need to send them money.
We purchase goods and services online
One of the most obvious and prevalent ways in which technology has changed the way we manage our money is by allowing us to purchase goods and services we need online. There’s no more need to spend hours in long queues at the supermarket or the mall to buy what you need. You can find almost everything online.
E-commerce allows consumers today to find almost every product or service they need online and pay for it in the online world as well. Online stores allow you to find everything from food to beverages, clothes, technological devices, plane tickets, toys, books, and literally anything else you might need.
We pay using our smartphones
Went to the supermarket for groceries and forget your wallet at home? As long as you have your smartphone with you and you’ve added your cards to the E-wallet your phone has, you don’t even need your physical wallet.
Today, smartphones come with an integrated feature called “E-wallet.” As you may imagine, it represents your electronic wallet where you can add your cards and use them directly from your phone. You can make payments using your device by opening your e-wallet app, placing your smartphone in front of the card machine, and holding your thumbprint on the home button.