It can be very difficult for individuals to effectively manage their finances, especially when they are not really numbers minded. As such, many spend their entire lives paying little or no attention to their spending and saving habits, only to find that in retirement they don’t have enough to live on.
As the world enters a new global recession and the middle class continues to shrink, there is little room to keep moving forward with little attention to personal financial management, especially considering the burden ever-increasing burden imposed on average household incomes.
From rising debt for housing, cars and other big assets to rising household operating costs, it can be hard to put money aside for a rainy day, let alone for a rainy day. retirement. Then there’s the growing need to spend on education, professional development, and other factors that can lead to better employment.
Such expenses can lead to both short-term and long-term financial hardship, especially if these investments do not produce the returns needed to obtain better-paying work.
Along with the burdens of need, there is also a very real and valid desire for individuals to actually enjoy life. This often means spending on trips, dining out, fancy clothes or gadgets, or anything else that makes life feel like it’s worth living.
With all of this in mind, it is therefore understandable that many households and individuals struggle to manage their finances well and save enough for retirement. And this is where technological advances can be of great help.
On the one hand, many banks have embraced technology to make it easier to execute and track payments, determine credit scores, and access funds. Communicating with banks and other financial institutions is also easier thanks to the use by many of these organizations of social media and other communication platforms.
In addition, many brokers, debt counselors and other relevant parties operating in the field of personal finance have become more accessible, and reasonably priced, for online consultations. Many practitioners have additionally embraced streaming and video services to provide training and workshops to laypersons looking to improve their financial management capabilities. All of this can facilitate the acquisition of the ability to better manage finances, no matter where an individual is in the world.
Another big advancement is personal finance tracking apps and/or personal accounting software. These apps help individuals track their income and expenses, view their monthly and annual income, and determine the best way to reach their short- and long-term financial goals.
When individuals become aware of their spending habits, are able to find better ways to save and invest their income to grow over time, and can make active changes whose progress they can track over the long term, more they will be likely to not only better manage their immediate finances, but also to achieve their retirement goals.
Thanks to technological developments, it is now possible, even for those with minimal income and/or little knowledge of financial management, to become more educated and take control of their finances.
Published on February 3, 2022