3 Ways Technology Can Help You With Your Budget
By TOI Staff April 3, 2023 Update on : April 3, 2023
Creating and sticking to a budget can be one of life’s biggest challenges. This doesn’t mean that it’s impossible, just that it could take some effort and attention. Fortunately, there are a number of different ways that technology can help with the process. There’s no reason to give up if your previous efforts have been unsuccessful. The longer you stay with it, the better the outcome will be.
Online Banking Provides a Real-Time Snapshot
There are a number of effective ways that you can use technology to help you with your budget. When you use online banking, you have a real-time snapshot of your financial activity. Utilizing the bill pay function that your bank offer is another way to manage your budget.
It’s a good habit to check your online accounts on a regular basis. With the help of technology, you can track your online banking, credit cards, and savings accounts fairly easily. The more familiar you are with your finances, the better able you’ll be to properly manage them.
One of the first reactions that many people have when they face financial hardship is to ignore the situation. No, this won’t make the problem go away, and in most instances will only make it worse. Once you’re in the habit of staying on top of your finances, you’ll be less likely to have this response. Dealing with any negative situation head-on may be difficult at first, but the outcome will likely be better in the long run.
It’s Simple to Track Income
Creating and sticking to a budget is an achievable goal, especially when you have the right tools. If you work as an employee and are paid a fixed amount on a regular basis, this is a fairly easy task. However, for gig workers, consultants, or folks with some type of variable income, using a spreadsheet or app makes it a lot easier to track income.
Tracking income has many advantages. You can begin to recognize trends that can help you spend your working hours more wisely. If you’re noticing that certain clients are slow payers or that some gigs are producing that much income, you can direct your efforts elsewhere.
Now, if you are a salaried employee, it still makes sense to keep track of how much you’re earning. Financial decisions like participating in your company’s 401(k) program can affect your take-home pay, as can taxes and overtime. Staying on top of your income can also help you recognize any errors in a timely manner and have them fixed right away.
Awareness of Spending Habits Makes Them Easier to Manage
For many people, the most difficult part of staying within their budget is keeping their spending in line. If you aren’t keeping track of how much you spend each month, and on what, now is an ideal time to start doing so. If you use an app like the Ria Money Transfer service, you’ll see when you make financial transfers. This spending is easy to track when everything’s contained on a single platform. By using these apps instead of cash, you’re better able to tell where your spending habits might need some refinement.
In addition to apps, you can also utilize your online banking account to categorize all of your spendings. Make one category for cash spending and connect that category to your money transfer app. Next, create a category for housing costs and other fixed expenses. Insurance, utilities, car payments, and other common household expenses can also be easily categorized.
The category that most often needs the most attention is discretionary spending. You can further divide this topic into subcategories like dining out, entertainment, travel, and clothing. No matter how you do it, the more aware you are of your spending, the better able you’ll be to keep it in line with your budget.