One of the biggest ways to ensure financial success for you and your family is to stay on top of your spending and balances. 40 years ago, people did this with a pen and paper while relying on bank statements. Today, however, technology makes the process significantly easier. Here are five ways that you can use technology to help keep track of your finances.
1- Banking Websites/Apps
Nearly everybank, credit union, and credit card will have a website and/or an app that will help you keep track of your spending, as well as tell you your current balance. Years ago, you had to visit an ATM or your financial institution to find out how much money you had left in your account. Today, that information is all available at the press of a button.
2- Spreadsheets
The modern version of balancing a checkbook, using Excel or another program to keep track of deposits and withdrawals is an excellent method of staying on top of your finances. If you have multiple accounts, you can use different pages on the same file to keep track of them all at once. This is especially useful if you keep money in each and need to know at a glance how much you have saved up in total.
3- Text Messages/Emails
Many banks have the option of receiving emails or text messages every time a purchase has been made. Not only will this help you to know your exact balance at any given time but it’s also an excellent way to prevent fraud. If you receive an email or a text message that says you just spent $200 at a hardware store in Cleveland, Ohio, even though you live 100 miles away and have never been to that store, you can report the fraud more easily.
4- Accounting Software
Using QuickBooks or another program to manage finances provides many benefits. Not only can it track spending and tell you how much money you have left but many of these programs can also help you keep track of expected incoming transactions like bills that are paid on the same day every month. This can be valuable for budgeting purposes and help you decide whether you can afford a major purchase like payments on a new car.
5- AI
Among the many uses of AI is the ability to answer financial questions. For example, imagine you use one of the above steps to determine that you have $900 in disposable income every month. You can then ask ChatGPT-4 or another AI program a question like, “How expensive of a house can I afford with an $800 mortgage?” As AI is an emerging technology, you will want to verify this information with a potential lender.
These are just a few of the many ways that you can use technology to keep track of finances. These free resources can make the process easier, faster, and nearly foolproof. If you aren’t sure of where to start, reach out to a financially savvy friend or a financial advisor to help you.