When Saving Money Use Technology To Your Advantage

Technology should be your best friend when it comes to saving more money and on a consistent basis.

Too many people do not take advantage of the technology that is right at their fingertips (literally).

Getting used to and comfortable having all of your bank/investment accounts linked to your smartphone can mean all the difference in the world.

And especially if you have a goal of financial independence.

Constantly checking in to see where you stand is incredibly helpful rather than being totally blind to your finances.

Modern day technology is also good for setting up automatic savings plans, creating a detailed budget and tracking your net worth.

All in all, I want you to embrace technology rather than being fearful of it..anyone can learn no matter what generation/age you are.

Below are a few ways that I take advantage and utilize technology to help when saving money and increasing my net worth.

Download All The Necessary Mobile Apps

Taking your finances seriously and socking away extra cash means having all of the proper mobile applications downloaded to your phone.

In doing this, you are only a “screen touch” away from your most important accounts.

Most major banks/investment companies have mobile apps that you can utilize…If they don’t, make sure you can easily login from the Internet on your phone or your computer.

To help explain this further, below are a few apps that I’ve been using for years now (note: everyone’s personal setup will be different based upon where they hold their money).

• Bank of America: I have a simple checking account and savings account with Bank of America. The checking account is used a lot for everyday type purchases so it’s essential that I have this linked to my phone in order to monitor my spending and check in when necessary. I can also easily transfer money from my checking to savings (or vice versa), quickly and seamlessly from my phone (or any other mobile device)
• Capital One 360: This is an additional savings account of mine that provides a
  higher interest rate than my Bank of America savings account.  For that reason, this is where I’m currently putting money away for a down payment on a house. This account in the future will be used for longer term financial goals that I don’t want tied up in an investment/retirement account. Capital One 360 is great because it also allows you to set up savings goals where you can monitor your progress.
• Vanguard: I have a Roth IRA and a Brokerage account set up with Vanguard, which are both invested in the stock market (VTSAX to be exact- Vanguard’s Total Stock Market Index Fund). I like to call these my “freedom funds” that I contribute to heavily to take advantage of compound interest, increasing my overall net worth and setting myself up for financial independence. Vanguard’s mobile app allows me to set up automatic or one-time contributions, track my investments in great detail, and provides in-depth metrics/analytics on how my investments are performing. I personally couldn’t live without this application.
• PayPal: I use the PayPal app for my side business, which allows me to quickly make transactions necessary to my business, transfer profits into my Bank of America account and send money to friends/family. When you run a business you need to be linked up to your accounts in order to save yourself as much time and money as possible. I use my PayPal app daily and couldn’t imagine doing business without it. When I’m “on the go” and away from my computer, this application comes in very handy to complete business transactions.

Automate Your Savings Plan

Another reason why technology is so important when it comes to saving money, is because it allows you to automate your savings plan…which quite honestly could mean the difference in being broke or becoming a millionaire down the road.

With the apps I highlighted above (specifically Bank of America, Capital One 360 and Vanguard) you can create a plan where a certain amount of money is transferred to those accounts every week, bi-weekly or monthly…automatically.

If you know anything about personal finance, you know that this step (as simple as it sounds) is crucial to your financial success.

The reason being is that you don’t have to think about saving/investing for the future since it’s automatic month in and month out.

It allows you to pay yourself first instead of spending your money as soon as you receive it.

And this my friend is how you build real wealth overtime.

Thanks to technology, saving money has never been easier.

Create Spreadsheets or Use Apps to Track Your Net Worth

Microsoft excel, although not entirely new technology can still be a great companion when tracking your net worth whether it’s monthly or yearly.

You can really create in-depth charts and tables based on your finances to keep track of your net worth.

This in my opinion is critical to growing your money as it allows you to see the progress you’re making and gives you incredible motivation to keep striving for more.

Personally, this has been an absolute game changer for me when I started implementing this strategy a few years ago…it’s really inspiring to see your hard work pay off over the years.

Spreadsheets are also really helpful for tracking expenses and improving your overall spending habits.

Lastly, another excellent app/website is Personal Capital which allows you to link your bank/investment accounts to the app in order to track your net worth, create various goals and manage your finances.

This is a great alternative to using your own spreadsheets if you’re not comfortable using Microsoft Excel.

Personal Capital is a useful way to get to know your money better, identify trends and create long-term goals.

Conclusion

In summary, technology when it comes to saving money should be used as a tool to increase your freedom fund, nest egg, net worth or whatever you want to call it.

It’s a sure-fire way to stay on track, stay inspired and ultimately help you reach total financial independence.

Adapting to the ever-changing technology we see today in the financial world is an incredible skill that shouldn’t be underestimated.

These little tips, tricks and tactics will really set you up for financial success over the long-term.

Stay focused, remain persistent and take advantage of the technology that’s available to you today!