Technology has influenced each and every aspect of the way in which we manage our finances. While on one hand you can make use of a budget app to track your spending and saving, on the other hand, there is every other chance of you spending so much on your smartphones and other emerging technologies that you might unwittingly be drawn closer to debts. Let us explore more.
Exploring the Relation between Technology and Finance
As already mentioned above, technology has had far-reaching influence on the way in which we deal with our finances today. From budgeting to keeping track of your savings to comparing prices of stuff online, you can complete a plethora of financial activities just with a help of a few clicks!
Technology Helps you Make more Informed Choices: Technology had started influencing our financial decisions way before we were exposed to all the apps we have briefly mentioned about here. Just think how the internet has revolutionized the way in which we shop and stay on track when it comes to deals and discounts.
An online shopper can do everything starting from purchasing products 24/7 just with the help of the few clicks of the mouse and read online reviews of products, brands, manufacturers and services as well. Making an informed decision regarding your shopping choices becomes easier because you can conduct comparison of prices offered by various companies sitting at home. The cyberspace makes for a highly competitive market. The e-commerce sites, as such, end up offering heavy discounts to lure more customers.
You can track your budget with the help of technology: Saving Goals, Level Money, LearnVest and Pocket Expense Personal Finance are just a few of the host of budget apps made available for you. You can create a budget that includes your savings and spending each month. You can monitor your spending in order to determine how much you can put in your savings.
Technology can entice you to spend more as well: As already mentioned above, critics have pointed out that online shoppers have the propensity to spend more than people who mostly shop offline. It is simply owing to the fact that the internet takes the difficulty out of shopping. You are not required to hop from one store to the other on foot. The energy thus saved, is spent on browsing more stores and buying more, as well. In fact, it was reported that over 80% of the Canadians who used the internet had made online purchases in the year 2014. At the beginning of 2015, financial analysts predicted that the year would mark a rise in the rate of interests for the Canadians and for those already in debts, even a minor increase in the rates could turn out to be insurmountable. Cashless transactions, no matter, how convenient they are, have been regarded as one of primary reasons why people are racking up higher personal debts. Today, if you have enrolled in a debt management program in order to wriggle out of debts then the debt counselors will definitely tell you that one of the ways to regain control over your finances is to reduce cashless and online expenditures.