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Personal finance software continues to be developed and refined, and many people are benefitting from added control over their personal finances. Aside from the added security and efficiency it provides, technology has now opened the door to opportunities that were previously unavailable.
Here are 5 ways that personal finance software has changed our personal finances for the better:
1. Budget Management
With a smart software, some apps can analyze income patterns and spending habits. When it has collected enough data, the app calculates how much money you could reasonably set aside on a weekly basis. Then via direct debit, this amount is automatically transferred to your account. You then have the option of simply saving up this money, or you can invest it in a variety of ways. Apps like these will vary but will all offer the same benefits.
Another option to budget apps would be personal accounting software. With accounting software, you can automate the tracking of your income and expenses. You don’t have to input any figures on your own, the software will do the job for you, and it can even prepare financial reports for when you’re filing your tax return.
Top 8 Personal Budget Software Apps You May Want to Consider;
2. Investment Opportunities
Stocks, bonds, and index funds can now be analyzed, purchased, and sold instantly. Platforms are available that allow investors to drop money into startup companies with ease. Online brokers supply many different tools for investors, with everything from stock recommendations to a simple way to monitor their holdings. All they have to do is use their smartphone or tablet, and they can gain an insight into the health of their investments whenever required. Also, cryptocurrency, which has gained in popularity ever since Bitcoin exploded in value. Continued software developments are helping to make this market easier to navigate day by day. Platforms such as Binance, Coinbase, Kraken, and many more are paving the way for cryptocurrency investments.
Top Best Investment Apps of 2020 You May Want to Consider;
- TD Ameritrade: Best Overall
- Fidelity: Runner-Up
- Ally: Best for Beginners
- Webull: Best Free App
- Acorns: Best for Automated Investing
- SoFi: Best for Learning About Investing
3. Digital Shopping
Online shopping has also opened the door to international purchases. When you once had to rely on specialist import shops to buy certain overseas goods, you can now do so directly from the source. The language barrier doesn’t even have to be an issue – not only are translation apps readily available, but there are services available which deal with the entire overseas ordering process.
From a personal finance point of view, though, it is the savings that matter the most. Online stores typically sell products at a lower price, while you can also download apps that help reduce the costs further by finding discount coupons and exclusive deals for specific websites. Honey, for example, is a browser extension that is free to use and covers over 30,000 participating merchants in total.
4. Online Banking
Now a days, you only need to download apps that represents their bank, and you have instant access to your personal finances. You can view your balance at any time and send out payments within seconds. Furthermore, it’s possible to link accounts together, buy and sell investments, and even organize direct debits straight from a bank. Online banking also provides additional level of security. You can set up notifications on your smartphone to be alerted to any activity with an account. If any unauthorized transactions are processed, a user will be made aware of these instantly. Hence, the transaction can be declined.
5. Payment Processing
The growth of sending and receiving online payments can be largely attributed to PayPal. Since PayPal paved the way, other platforms like Stripe and Payline have emerged.
One of the most exciting payment processing developments is the use of digital wallets. With the use of near-field communication (NFC) technology, digital wallets allow people to simply scan their smartphone – complete with an applicable app – to make a purchase at a retail store. Additionally, with enhanced security features and convenience, digital wallets are growing in popularity across the globe. Since launching in 2014, Apple Pay, recognized as one of the most prominent mobile-based payment providers, now has over 440 million users worldwide.
Personal finance software is just a tool to make managing money easier, one should not make it a replacement for sound strategy, budgeting, and long term investing approach.
Good Luck!!
