As the world modernizes, many aspects of human civilization are digitalizing quite faster than others. Outside the realm of science and technology, communications and finance are some of the earliest adopters of any digital advancement. However, while banking organizations and large financial institutions may eagerly embrace such technology, average people may not be so welcoming.
A huge part of why you may be hesitant to embrace digitalizing your finances is how complicated it can all seem. But there are simple ways you could integrate technology with your finances that can provide tangible benefits. With great digital integration, you could make an effective budget, track your expenses and even get out of debts much faster.
Below are some important ways you can digitalize your finances today.
- Use Electronic Payments
Electronic payments refer to using currency rendered in digital medium to pat for goods and services. It not necessary for you to come up with a digital currency of your own to use electronic payments.
In 2020 alone, researchers estimate that 78 percent of the American population used digital or electronic payments in lieu of in-person transactions. There are programs called e-wallets or digital wallets that let you connect to your own bank account to make payment via touchless procedures easier. This usually involves an app generating an RFID image or sending a code to a cashier.
Using electronic payments makes your life easier since you wouldn’t have to go to a bank or an automated teller machine to withdraw cash. Some e-wallets also come with budgeting software that keeps track of your expenses, letting you monitor how much you spend digitally. You can also find that not carrying too much cash on your person can be easier since you don’t have to worry about getting robbed or losing it.
- Shop Online
Online shopping has become a juggernaut in recent years. Even before the pandemic, many retail stores were transitioning into digital commercial spaces. Online shopping platforms, like Facebook Marketplace and Amazon help you find products you may have difficulty locating in a physical store.
With online shopping, you can also get customized orders. For example, if you wish to order something in bulk or to order different variations of the same thing, it may be simpler to do so on an online shopping platform than in real life. However, online shopping also has its downsides. Some people claim that you may end up spending more money online shopping since its so much easier.
Regardless, 80 percent of Americans have used online shopping and adopting it as soon as possible can make your life and finances more streamlined.
- Budgeting Software
A recent survey showcased that at least 30 percent of people in American don’t maintain a budget. This can be due to a number of factors.
First, budgeting can be quite difficult and requires a good head in mathematics. Second, properly budgeting your expenses will take a lot of time, time that not a lot of people can have to set aside. Finally, proper budgeting techniques also incorporate a lot of timing and allocation procedures.
With all these intricacies combined, it’s no wonder people find it off-putting to sit down and make proper budgets.
However, you can use innumerable budgeting software available online to help you balance your finances. Thanks to these apps, you can input your revenue streams and potential income into an app and use it to see where you are spending too much of your money and where your resources are going to.
If you find digital budgeting programs too intimidating and you don’t like them, you could use simple spreadsheet programs like Microsoft Excel can greatly enhance your budgeting efforts.
- Automated Payments
Finally, many budgeting programs and financial institutions allow you to link your bank account to apps, so they can automate your payments. This can be extremely useful if you have a busy schedule. One missed payment can mean whether you get to keep your car, live in your apartment or if your kids stay in school.
But if you have to juggle maintaining a job, a family life and a personal life, you may not have enough time to make your payment sin person. Automated payment software can help you whittle your debts and loans like clockwork, all from the safety of your phone or laptop.
Embracing digitalization in finances can be intimidating and more than a little frightening, especially with the prevalence of scams and electronic failure. However, the benefits offered by digitalization can be worth more than the problems it can cause.