In this era of rapid technological advancement, methods of managing money have seen dramatic shifts.
While traditional approaches like visiting a bank in person, maintaining handwritten spending records, receiving paper bills, and drafting budgets on physical paper still hold value, they can now be replaced by digital tools and services that save considerable time.
The primary benefits of adopting technology for financial management are speed and precision.
As someone who volunteers as a financial coach, I frequently encounter individuals who are deterred by the time it takes to budget, monitor spending, and save. While these tasks are essential for financial success, they undoubtedly demand a time commitment. Fortunately, even a little effort can yield significant rewards.
Being a technology enthusiast, I’ve incorporated various tools into my financial management routine. Here are some of my top recommendations:
1. Automated Savings: Qapital Savings
The truth is, unless we proactively establish mechanisms to save, many of us simply won’t.
Enter Qapital, a recent addition to the financial technology scene. It’s designed to make savings effortless. Once you register and connect it to your primary bank account and smartphone, Qapital will assess your account balance and spending patterns. It then identifies small amounts of money that can be transferred to savings without affecting your day-to-day finances.
While these savings might be modest – from a couple of dollars to slightly more – they accumulate over time. For instance, a colleague, Peter, managed to save approximately $1400 in just a few months using Qapital.
2. Digital Budgeting: You Need a Budget (YNAB) & Tiller Money
When I introduce people to budgeting, I usually start with a traditional approach: pen, paper, and diligence. But once they grasp the basics, digital tools can enhance the process.
YNAB stands out in this regard. It not only simplifies budgeting but also allows for real-time spending tracking through its mobile app. A standout feature is its ability to use your phone’s location services to remember frequent transaction locations, thus minimizing manual entry. Moreover, YNAB’s user-friendly interface makes it enjoyable to use.
Another commendable tool is Tiller Money, a Google Sheets-based budgeting solution. It connects to your bank, fetches transactions, categorizes them, and provides insights into your spending against your budget.
3. Mobile Check Deposits: Capital One & Ally
Many major banks, including Capital One 360, Ally, Bank of America, and Chase, have incorporated mobile check deposit features. As someone who banks with Chase for my business transactions, I’ve found this tool invaluable. Simply snap a photo of the check using the bank’s app, and voilà, it’s deposited. It’s a time-saver, especially given today’s rising fuel prices which can make bank visits expensive.
4. Robo-Advisors for Automated Investments: Betterment, Wealthfront, & M1 Finance
The financial world has also seen the rise of automated investment platforms or “robo-advisors”. They invest your money in low-cost index funds for a nominal fee. Tailored to suit your age, risk appetite, and more, these platforms also facilitate automatic deposits. My top picks among them include Betterment, Wealthfront, and M1 Finance.
Streamlining Your Financial Management
While the realm of financial technology is vast and ever-growing, the tools mentioned above form the foundation of my management routine. At least until the next wave of technological advancements come our way!
By employing these, I’ve been able to minimize the time I spend on money management to just a few efficient minutes each day.
So, which tools do you rely on to modernize and simplify your financial tasks?
