Here Are 3 ways Fintech can Help you Automate your Finances
Online banking is the new norm whether you bank at your local brick-and-mortar or use a neobank. Fintech is the way of the future, and even people who swore they’d never bank online are taking advantage.
Fintech makes banking easy, and not just because you can bank from the comfort of your own home. It helps you automate your finances – which makes it much easier to stay on budget, protect your credit, and build up your savings account.
Stay on Budget
Staying on budget is hard when you’re calculating the budget yourself. Take advantage of AI apps and let it tell you when something needs to change.
A few ways fintech helps is:
- Alerts you when your balance nears your threshold
- Sends push notifications when a transaction occurs
- Set up buckets and shows you savings progress in real-time
- Alerts you when you have money you can save after evaluating your upcoming bills
With real-time alerts, you’ll have a better handle on your finances and know when you can and can’t spend.
Protects your Credit
How often have you missed a payment only to discover it once it’s over 30 days past due? Even one late payment hurts your credit score, making it hard to bounce back and/or get new credit.
Instead, protect your credit by using fintech to set up automatic payments. Most banks offer this service as do individual creditors. Set up the payment before the due date and you can say goodbye to late payment fees and damaged credit.
As a bonus, you’ll have more money in your bank account by avoiding late fees. Credit card late fees alone can be $35, so it adds up.
Automates Savings
How often do you pay yourself? If you can’t remember the last time you transferred money to your savings account, use fintech to automate it.
Set up automatic transfers from your checking account to your savings account (it doesn’t have to be at the same bank). You determine the date and the amount and the app does the rest. Set it up on your payday so you always pay yourself first rather than paying your bills and spending, before seeing if you have enough money to save.
If you aren’t sure you can save, use an app like Acorns that rounds up each purchase to the nearest dollar. Saving spare changed doesn’t sound like much but when you round up every purchase, it amounts to much more than you think and fast.
Use Fintech to Get your Finances Under Control
Fintech opens up many doors for financial security for everyone. It’s easy to use and if you use an FDIC-insured bank that takes security seriously, your information and money are protected too. It’s a great way to get control of your finances, save money for future goals, or just use your money the way it’s supposed to be used rather than guessing with a budget you created with pen and paper.