By Babatunde Adebajo
In a world increasingly defined by its digital landscape, managing your finances through pen and paper may feel outdated and inefficient. The advent of financial technologies has changed the way we handle our money, introducing an array of tools and platforms that simplify, expedite, and fortify personal finance management. Gone are the days when you needed to huddle over an Excel spreadsheet, manually logging every transaction or expense. From simple budgeting apps to online banking, technology has the potential to act as a powerful tool and guide on your wealth-building journey.
But while technology and tech-based financial tools continue to improve and grow more advanced each day, some people remain skeptical of using technology to manage something so important to their lives. Others simply aren’t aware of the benefits these platforms can provide them with.
Personal finance management for Nigerians
Due to harsh economic conditions, personal finance management is becoming a herculean task that requires super-discipline. With the advent of technology, investment-locked-in features of some applications bring a level of succor. And, for many people earning through paychecks, personal finance is a scary discussion as there is little or no disposable income for investment or savings. However, it is not supposed to be so, as personal finance is an integral part of saving for rainy days.
In this article, I shall provide insight into seamless personal finance management with the power of technology, and modern ways of planning and managing financial activities such as savings and investment.
I will also provide the pros and cons of leveraging technology platforms that can help improve your financial life.
To get started, personal finance management is all about money management, which includes savings, budgeting, investments, insurance, and retirement planning. Having a firm understanding and knowledge of your finances is one great way to stress-free financial life. To better understand the benefits of personal finance management, we must revisit the global pandemic of COVID-19 and the resultant economic recession.
In today’s world, technology can help improve your personal finance management. Below are some of the ways one can leverage technology.
- Keep track of your daily and monthly spending.
Keeping track of your expenses can help improve your finances. It helps you budget for every penny spent. Better financial management begins with an informed knowledge of spending habits. In Nigeria, you can track your monthly spending through your bank mobile app or saving platforms like Piggyvest, KoloPay, and Kudi. Unlike the traditional method of using pen and paper to track your spending on things that are essential and non-essential.
Once you educate and discipline yourself on those habits, you can make a sustainable plan on how to improve your finances.
- Have a savings plan.
Putting aside a part of your wages or salary is a great way to improve your finances. For example, you can create an emergency/precautionary fund on which you can always fall back when met with unplanned circumstances.
Saving-friendly applications like Cowrywise and Piggyvest can help you achieve your goals easily and reinforce the habit of setting aside money for future needs.
- Opportunities to invest.
To improve and adequately manage your finances, you need investment plans and hacks to consistently save money and increase your cash flow by having a reasonable investment plan with a reasonable ROI to invest in.
- Leverage Budgeting Apps: A Personal CFO in Your Pocket
Budgeting remains essential to effective financial management, yet most people often overlook it due to its perceived tediousness. Modern budgeting apps like Trakka, Inflow, Crowdyvest, and CashBoxNg have come to the rescue, automating the tedious parts of financial planning.
These apps synchronize with your bank accounts, credit cards, and loans, providing a unified view of your finances. They categorize your expenditures, track your income, and even offer insights into your spending patterns. With the help of these digital tools, you can create realistic budgets and set attainable financial goals.
In this age and time, leveraging technological tools for reliable financial management is a must for both young and adults. With this array of these applications, it has been proven that keeping and tracking money also attracts the interest of certain percentages of its customers. Unlike traditional box savings and thrifts which attract no annual interest. When you adopt technology, it will strengthen your finance management as some of these apps will charge you for money withdrawal prior to the maturity date.
When it comes to money management, the GenZ is at the forefront of digital savings, unlike the previous generations which would prefer saving money at home for easy reach.
Another benefit of leveraging digital platforms is that of monetary gains by referring others to the platform. One of the major baits for GenZ is to easily recruit their friends to indirectly embrace the culture of personal finance management.
In summary, it helps you understand money better and how to plan around it, organize your savings, and spend correctly. Also, it helps you establish clear financial goals with clear metrics to follow and cultivate the habit of budgeting expenses to avoid excessive spending.
Final Thoughts: The Future is Now
It’s worth noting that while each technological tool offers its own set of advantages, the real power lies in using them synergistically. Combine your investment app’s insights with your budgeting app’s spending analysis while keeping tabs on it through secure mobile banking. Integrating these various technologies allows you to transform your approach from mere management to strategic financial mastery. The resulting peace of mind and the sense of control can be immensely freeing, allowing you to focus on living your life to its fullest potential.
With such powerful technologies at your fingertips, managing your finances has never been easier and more empowering.
Babatunde Adebajo is a seasoned Product Growth Manager, who helps companies scale great products with his expertise in business development, partnerships, user acquisitions, and retention. In his spare time, he writes articles on hot and emerging topics in tech and the banking sectors.