Impact of Technology on Finance Management
Introduction
Technology has transformed the way we manage our finances, from online banking to budgeting apps. This blog explores the impact of technology on finance management and how it has revolutionized the way we handle our money. Discover the benefits, drawbacks, and trends in the world of financial technology.
Technology has made our lives more convenient, giving us access to information, resources, and entertainment with the touch of a button. We can pay bills online, shop from home, and manage our finances from the comfort of our living rooms. However, this increased convenience comes with an increased security risk. To protect ourselves from cybercrime, we must be vigilant and monitor our accounts, credit scores, and card statements.
4 Ways Technology Has Changed the World of Personal Finance
Even though it’s not spring anymore, I’ve been working hard to clean out both my office at home and my office at my full-time job. I find that I can work better and get more done when my room is clean and organized.
I was cleaning out some drawers in my home office when I came across a plastic tote full of old tech, like my first iPod, a lot of old cell phones and chargers, and a bunch of other strange tech-like objects I couldn’t identify.
This made me reflect on my earlier technical experiences. I’ve actually used a lot of various computers, telephones, music players, and other technology throughout my little existence. Is this a result of me being rough on my tools? Partially, but it might also be due to the always developing and changing technology that is always on the horizon.
Eventually, much like everything else these days, this way of thinking brought me back to personal finance. But my thoughts quickly turned to how technology has affected my own finances rather than lamenting how much money I had spent on it over the course of my life. Here are my four ideas for how technology in finance management has changed the world of personal finance.
Online Banking
One of the first things I do each day is checking my checking account on the online banking system. Yes, I do this every day because I want to keep a close eye on my money as I work to pay off my debt. If I didn’t have the internet and a computer, I would have to call or go to the bank every day to check my balance and see what transfers have been made. What a hassle!
Paying Bills
Bill paying is another thing I do online with my laptop that has to do with my personal finances. Every month, I pay all but three of my bills online. If you pay your bills online, your money won’t get lost in the mail, and you won’t have to pay the annoying fee that many companies charge if you try to pay by credit card over the phone.
With online bill paying, I can also plan my payments ahead of time, so I can pay all my bills on the same day every month instead of having to set aside time several times a month.
Earning Money
Do you get all of your money from a job you go to Monday through Friday from 9 to 5? I don’t. I got a side job online to add to my money and help me reach my financial goals, like getting out of debt, faster. Because of the internet, I might even be able to quit my full-time job soon and work full-time on my online business instead.
Even if you don’t want to quit your day job, there are many ways to make a little extra money online, like using TopCashBack to get cash back on your normal shopping or Swagbucks to get cash for using a different web browser.
Getting Paid
Do you get paid by your full-time job with a paper check? I hardly know anyone else who does. My company pays me through direct deposit, which means that my paycheck is in my checking account much faster than if they had to send me a paper check and I had to find time to go to the bank to deposit it.
Most of my customers for my side business pay me through PayPal, which is another way to pay online with a bank transfer or credit card.
I might not be getting paid at all if it weren’t for direct pay and the Internet.
very day, technology changes our lives in countless ways that are hard to count. Sometimes, we don’t even know how much technology affects us or how much we depend on our online systems.
Effects On How We Handle Money
The way we see, track, and manage our finances, as well as how we create budgets, have all been impacted by technology.
Visibility
Traceability is a huge advantage of all these digital transactions! You can reasonably simply determine where your money is going if you are curious. When you go on to your bank’s website, you may view all of your accounts, balances, and investment performance information in real-time. Using services like myGOV, even super balances, and student debt fees are now visible.
Efficiency
The ATO has used technology to transition to more effective reporting methods; for instance, our yearly payment summaries are no longer available. Now, your employer can file this on your behalf and submit the information. Loan applications, for example, may now all be completed online in a matter of minutes.
Budgeting
With so much transparency comes knowledge. With so many budgeting tools and information at your disposal, creating a budget no longer requires hours of number crunching and statement searching. Download our free budget planner.
There are also apps like the Money Brilliant app that may provide you with a thorough overview of your expenditures. All of your accounts are synced by Money Brilliant, giving you a complete picture of your expenses, earnings, spending patterns, and budget in one location. Money Brilliant organizes your spending so you can see exactly where any money leaks or budgeting problems may be. You won’t have to make any more educated guesses because you will be able to pinpoint your expenditure to the cent. All of our clients have free access to Money Brilliant, which is $10 per month.
Where to watch out
Even though there are many good things about living in the digital age, it’s important to be aware of your cyber and security risks. For example, you should never click on links in emails that look suspicious, never give your information to a source you don’t trust online or over the phone, and make sure to cancel any cards you lose as soon as possible. One good way to keep yourself safe is to call the organization yourself. So, if you get a phone call or an email, call the service yourself and ask if the question is real. If it is, you can take care of it right away without giving your personal information to a scammer.
Conclusion:
In conclusion, the impact of technology in finance management was great and has revolutionized the way we manage our money. From online banking to robo-advisors, the advancements in financial technology have made it easier than ever to take control of our finances. However, it is important to be aware of the potential drawbacks and risks that come with relying heavily on technology on finance management. Ultimately, finding the right balance between utilizing technology and maintaining a healthy financial mindset is key to achieving long-term financial success.
