Technology has changed the way most of us live our daily lives, from how we communicate with each other to driving, cooking and completing most of our daily tasks. How we manage our personal finances has advanced greatly over the past two decades as technology has evolved at such a rapid rate. Now we can take charge of much of our financial management with just a smartphone and an internet connection, as most aspects of personal financial management have and continue to change.
The way we get paid has changed, with the most obvious way being that most of us now receive our payslips online. Rather than a physical letter (this does save a lot of wasted paper) many people get their payslips via email, with the money simply being deposited into their accounts overnight. This is a world away from receiving cash or cheques. Plus, payroll technology has advanced to make the process of data input, calculations and reporting a lot easier. The likes of auto enrolment can help businesses meet legal obligations too.
We’re moving closer and closer to a plastic money world. Thanks to contactless technology, more of us pay for many purchases with just a tap of a card, thanks to its convenience. From getting on the tube to a weekly food shop, as long as it’s under £30, fewer of us are carrying cash around. This does mean that the pennies and notes we used to lose are becoming a thing of the past, with cards instantly block able if lost and easily replaced. It also makes tracking all spending a lot simpler.
Lending and Borrowing
There have been a variety of new lending and borrowing ideas developed with the more connected that the internet especially has made the world. Peer-to-peer lending (P2P) platforms have emerged, funding personal loans, commercial ones and even mortgages. While the rise of crowdfunding has boomed, with many fintech companies connecting companies directly with individual investors to raise finances for a wide range of projects. No longer do individuals and businesses have to head to a high street bank to take out any kind of loan.
Constant Access to Cash
We now have a constant access to money to spend, thanks to mobile apps. These mean we can easily check our bank accounts, recent transactions and make payments even if we don’t have cash in our pockets. Gone are the days of avoiding buying a round because you don’t have change, as most places accept card. Most of our money management is now done online, with the ability to view and transfer funds in seconds.
Saving and Spending
Thousands of apps now exist to help individuals track their spending and saving, acting as a budgeting tool in your pocket. Whether you want to save a specific amount over one year or just require a clear view of your spending to identify where you’re splashing out too much, this is easily possible thanks to app and technology developments.
The way we manage our finances is now more down to ourselves thanks to technological developments, rather than relying on banks or financial advisors like in the past.
Sources: pctechmag.com / medium.com / thebalance.com