Digital Finance: 4 Ways to Manage Your Finances at the Tips of Your Fingers

With so many things going on in your life, having everything mushed into a precious smartphone makes life a lot more convenient. Chances are, managing your finances is among the many things you use this handy device for.

Using online banking, digital wallets, and trackers makes reaching your financial goals easier and more streamlined. Just download a few apps, and you’ll save a lot of time, money, and effort just by tapping your screen.

1. Utilize online banking

Online banking is a convenient way to manage your money at the tip of your fingers. By simply downloading your bank’s mobile app, you can create an account and start managing your money and performing transactions using it. With this type of banking, you can choose between online-only banks or those that also have physical branches.

For online-only banks, every transaction is done via the app only. All the processes are built within the app, whether you’re depositing, withdrawing, or transferring your money. You may have to be more diligent with securing your account and going over terms and conditions.

With banks that both have physical branches and online services, you can be a bit more flexible with transactions. Customer services are more personal, and they can tailor their services for your needs. Their branches are also more accessible when you need to make transactions that require a huge amount of money.

2. Take advantage of digital wallets

Think about a physical wallet. It contains your cards, personal information, and your money. The same goes with a digital wallet, but instead of going in your pocket or your purse, it goes in your smartphone.

Much like online banking, a digital wallet is accessed through an app. Users can cash in through multiple platforms such as PayPal, Payoneer, a partner store, your bank, etc. Digital wallets allow users to easily pay bills, bank transfers, online shopping, and business transactions.

Digital wallets offer instant or same-day posting of your transactions. So, if you need to transfer money to the bank, the balance with reflect right away on your bank account. The same goes for bill payments. This feature is extremely convenient, especially when you’re rushing a due date on bills or clearing cheques.

The flexibility of options depends on the digital wallet you’re using; some may have limited features while others offer more functionalities and partner merchants than others.

3. Keep track of your budget with financial trackers

A financial literacy skill you need to master is the art of budgeting—and this involves planning, tracking, staying within your budget, and most importantly, self-control. But don’t worry, technology can help you with the planning and tracking parts.

In managing your finances, planning is essential. A vision of where your money goes or how you’re going to spend it in a week, a month, or a year helps you visualize your goals and track your spending. Start by setting a goal—this can be long-term or short-term, depending on the plan that you’re making. Then, create a budget that prioritizes your basic needs, other essentials, and your goal.

To stay within your budget, a financial tracker might help. You can choose from the many apps available on your mobile’s app store, or you can create your own using spreadsheets. Either way, a tracker allows you to visualize where your money is going. It juxtaposes the amount of money you spent and what you spent it on.

For example, you paid your taxes for the month, so you can input the amount and the type of tax you paid. When you do the same thing for every expense you incur, the tracker can generate a graph or a total of your income and expenses. As a result, you’ll know if you have lived within your budget or not.

4. Make sure to protect your finances

Since all of these tips involve online connectivity, your data, and your hard-earned money, you need to be wary about your security. Remember that the internet is prone to malware and cyberattacks, leading to serious losses.

Here are tips you could follow to enhance the security of your digital finances:

• Change passwords and PINs often. Don’t use a universal password or PIN, too.
• Use multi-factor authentication for log-in.
• Verify your accounts. Not only will it give you extra security, but it will also give you access to more benefits with your online bank and digital wallet.
• Make sure to research the online bank and the digital wallet you’re considering. You can guarantee if the company is the real deal and not just a scam by doing your due diligence.

Make Managing Finances Easier

Technology has been designed to make our lives more convenient, and that includes helping you reach financial freedom.

While there are so many steps towards that one huge goal, you can take smaller steps to come closer to that goal. These steps may include finding convenient ways to handle your money, like online banking and digital wallets. It could also include tracking your finances and making sure that all your money is safe.