The ability to manage your money quickly can be done very old school, such as working with cash only. If you’ve been struggling financially, going back to cash is a good way to avoid excess credit card interest and overdraft fees. However, using technology to boost your savings and investment dollars is another way to get a handle on your money and actually make more with no effort.
Automatic Savings
You can tie a program to your personal bank account that will stash money away in small amounts, from $1.50 to $50. Digit monitors your bank account and pulls aside these small to sizable amounts of cash via an algorithm.
If your deposits are many and varied, Digit won’t take too much. If your deposits are fairly steady, the automatic savings amounts may be larger and more regular. Best of all, if a Digit withdrawal puts you in overdraft, Digit will reimburse the bank.
The dollars taken by Digit will not earn a great deal of money, but it will be secure and you can cash out the account and move these funds to a more lucrative savings account. These dollars won’t have you retiring early, but if you’ve never been a great saver, Digit can at least prove to you that it’s possible.
Automatic Investing
We’ve all been told that we must invest something in the stock market, that we need to start early, and that we need to let the money grow over the long-term. If you have a retirement account through your employer, you’re on your way. However, that money won’t be available until you’re 59 and 1/2. If you dream of early retirement, the information on easy investing apps featured in fintech news is a great place to start studying.
Finding a low or no-fee stock investment app can get you closer to your retirement dreams. While you’re working hard for your money, tiny bits of that cash can go out into the world and grow even more money to benefit you before the traditional retirement date.
Get Started in Bitcoin
It’s a good idea to put a little money into Bitcoin. If you’ve never taken a volatility tolerance test as an investor, Bitcoin can be scary. For those who aren’t sure about the roller coaster balances you may well see on your Bitcoin app, it may be easier to think of it as Monopoly money.
However, there are more and more regions, businesses, and even travel companies that are accepting Bitcoin. If you have an investment app and are shopping in Bitcoin-friendly places, you can travel on Bitcoin. Put a little money in an app like Coinbase and stay diversified.
Budget From Your Phone
It really doesn’t matter how much money you make if you’re not managing how much you spend. Sadly, it’s easy to think of a budget as the money penalty box. If you’ve been financially high-sticking or spending too much on every little purchase, you end up in the money jail that is budget. However, if you treat it like a straitjacket it will never work for you.
By setting up a budget on a smartphone app, you can see your budget for what it really is, which is a very useful tool. Your budget can give you the chance to align your spending with your values. For example, if you value healthy living but have a daily spend on potato chips or cigarettes, something is misaligned. If you value giving back but have no budget line item for charity, it’s time to pull from other categories until you can support causes that matter to you. Finally, make sure to allow a little financial space for self-care. The past year has not been easy; coming out of the pandemic will not be a simple process.
Tools such as YNAB, Mint, and Clarity Money may or may not work for you. A good budget will allow you to customize your money categories and track where your money is going. Don’t get too rigid about it or you’ll give up.
Spend a little, save a little, invest a little, and know where it is all going. Getting some sanity and clarity about the dollars you have coming in will go a long way toward planning for your financial future.
