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Six ways to improve your finances digitally

In the past, managing your money was limited to physical methods like contacting your local bank and working with a professional to invest in stocks, mutual funds, and bonds. Though these traditional money management techniques are still useful, technology has created more possibilities that will give you more control over your funds. The pandemic has made us more aware of how rapidly technology is advancing all around us. Even those of us who aren't particularly tech-savvy can use money management technology to save time, money, and feel more in charge of our finances.

According to Sahay, et al. (2020), fintech is assisting in closing gender disparities in financial inclusion by removing some barriers that disproportionately affect women—such as mobility and time constraint. In line with the United Nations 2023 theme for International Women’s Day, which is “DigitALL: Innovation and technology for gender equality”, we join the efforts on bridging the gender digital divide, especially in money management.

You may be aware of the latest technological developments in finances; today, you can track expenses, send and receive payments, and conduct banking transactions all from the convenience of your home using a gadget. The following tech tips can help you better improve your finances digitally.

  • Take advantage of a savings goal feature.

Saving money can be difficult, but it's a good idea to have three to six months' worth of living expenses set aside for a rainy-day. Some apps let users set savings goals and make it simple for you to meet your goals. Use an app to visualise your goal, monitor your progress, and reach your financial goals.

  • Set up direct deposit for your paycheck.

Request that your employer transfers your paycheck into the bank account that suits you. To supercharge your online money management, think about establishing an automatic transfer for your expenses and savings goals. Maintain a specific amount in your checking account for daily expenses to avoid overdraft fees.

  • Budgeting made easy

While setting a monthly spending cap is a good idea, it is even better to break that budget down by each major expense categories. Using different spend buckets forces you to consider your expenses more carefully, which lowers your risk of overspending. You can intentionally decide to balance your finances if you see an overspend in one category by making savings in another area.

  • Pay for fixed expenses using automatic transfers.

When bills are due, set up automatic transfers. This makes sure the cash will be sent on time. You can even schedule payments in advance of the due dates, and be mindful of the deadlines, particularly if you are dealing with taxes or debt repayments.

  • Set up alerts

Low balance? Just made a deposit? Done with a money transfer? If there are any changes in your checking or regular savings account, mobile and email alerts can let you know. This enables you to keep an eye on your expenses and possible fraud. Also, it stops you from overspending, which can enable you to stick to your spending plan.

You might have a schedule created for your bills and savings, but how do you stay on top of it? Enable an alert notification that tells you your monthly expenditure exceeds a certain percentage of your monthly budget. This helps you to avoid overspending. In fact, if you receive your alert sooner than anticipated, you can swiftly cut back on your spending to keep within your budget. Make sure to also get reminded when payments are due, which could save you from added penalty interest or fees.

  • Access to exclusive discounts or rewards.

Digital wallet providers frequently provide their members with exclusive discounts or rewards from certain shops. You could receive cash back or reward points that can be used to earn free stuff or discounts. Any apps or service that offers some money or value back is appreciated when there is rising inflation.

Fempire Finance

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