What are your financial goals for 2022? Would you like to buy a house? Or pay off your debts? Keep reading to see how to use technology to improve your finances and reach your goals.
Why use technology to manage your finances?
There are lots of benefits to using technology for your finances. Not only can it help you save money and keep to a budget but also achieve more significant financial milestones like buying a house.
Sticking to a budget is critical to financial health. You can find lots of easy-to-use apps and programs that make this a lot easier. Prism is a great app that will help you keep to a budget and potentially improve your credit score.
This technology works by aggregating all your income and expenses, giving you a complete picture of your budget. You can also set up reminders to check payments have gone out on mine. Other money management apps allow you to set up rules to automate savings.
For example, you can set a rule to round up to the nearest dollar when you use your cards, and you will be surprised how quickly these small savings add up.
Are you thinking about buying your own house and need help in achieving this huge milestone? When purchasing a house, many steps and processes can be streamlined with the smart use of technology, from searching the market for your dream home to picking out your furniture.
Before you do anything, you will need to consider if you have good enough credit to buy a house and whether you can afford a mortgage. Check your credit score quickly with an app, Experian Credit Score.
After that, it’s important to find the best mortgage that suits your financial situation. In the UK, there are online mortgage brokers like Trussle that calculate what mortgage you could get in minutes and get the approval online within five days.
Technology has certainly streamlined processes like this, which would once take quite a lot of time to complete. Once it is time to move, start designing your home with amazing new augmented reality technology, like the IKEA Place app that allows you to virtually plan your space in 3D before you even start buying furniture.
How to automate your finances?
One of the best uses of technology to improve your finances is automation technology. Not only will it help you stick to your budget goals, but it also ensures bills are paid on time.
The key is to know precisely when the bills are due, then set up automated bill payments after or on the date your income is deposited. If your bill payment date does not match up conveniently, contact your internet provider, phone company, electricity, or water supplier, and they are usually more than happy to change your payment date for you.
The key to managing your credit cards and using them to benefit yourself, not the credit card company, is never paying interest. This is easier said than done, but possible with automation. By setting up automated payments to your credit card, you ensure that you never miss a minimum payment.
Be sure to check payments regularly to make sure they are being processed for the right amount on the right dates, that way you will miss nothing. Even missing one or two credit card payments can put a big dent in your credit score. Automation is like a safety net for good credit.
Savings and Pension Fund
The first thing you should do each month when you get paid is to pay yourself; this means setting aside money for savings and your future. The general rule is this should be 10% of your income. Consistency is vital to successful savings, and automated payments are the key.
If you don’t set up your savings each month as a standing order/automated transfer, you are sure to always find a reason to use the money for something else. If you try to save each month manually, you are setting yourself up for failure.
While using apps and automating these processes is excellent, it is important to review your account payments manually.