In the vast world of finance, there are plenty of resources claiming to help educate you, guide you toward the quickest path to wealth and set you up for a financially stable retirement — with some of those resources more helpful than others. However, some of the most useful tools in finance, especially today, involve technology. From simple budgeting apps to online banking to AI chatbots and robo-advisers, 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 tech to manage something so important to their lives. Others simply aren’t aware of the benefits these platforms and tools can provide them with.
Below, six financial leaders and members of Kiplinger Advisor Collective share their expertise by outlining some of the ways in which leveraging financial technology and tools can help you not only improve your financial management but your overall financial literacy as well.
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Get a visual picture of where your money is going
“Utilize financial software that shows you where your funds are being allocated. By visualizing various areas where your funds are being used, you can better decide which of those areas need attention. These tools can also identify unnecessary costs and offer suggestions on how you can eliminate them in order to save more money.” — Justin Donald, Lifestyle Investor
See how your financial decisions play out over time
“One of the most helpful ways that individuals can use technology is by using it to understand their finances in the concept of time so they can be empowered to make the best decisions that align with their priorities and passions. Chronifi, for instance, is a super helpful tool that helps individuals understand the impact of their decisions over time.” — Marguerita Cheng, Blue Ocean Global Wealth
Take a focused approach to various areas of your financial life
“Categorize your financial life into key buckets such as Investments, Health Care, Daily Life, Home and Real Estate, and Education. Then, look for specific fintech apps that focus on the buckets most relevant to you. Most fintech platforms have a focus to help you manage specific areas and provide educational content and AI tools that help improve your financial literacy in those categories.” — John Bodrozic, HomeZada
Kiplinger Advisor Collective is the premier criteria-based professional organization for personal finance advisors, managers, and executives. Learn more >
Get a better understanding of your financial inventory
“It always amazes me how few people understand their financial inventory. The absence of formal education, and the tendency to hype the investment side of finances, leaves critical personal financial literacy lacking. Write down every financial instrument you own, control or benefit from and question how each of them serves you and your home. If any are not intentional, it's time to grow.” — H. Adam Holt, Asset-Map
Take advantage of perks and ease of tracking
“Start using a credit card, but make sure to always pay it off in full. Not only will this help you build credit, but having all your spending easily accessible online will help you track fluctuations from month to month. Plus, an unknown perk is that many credit card companies also offer a free credit score service so you can see how you're doing throughout the year. As long as you are disciplined and don't carry a balance on your card, don't use cash! Cash also runs the risk of being stolen.” — Andrew Schrage, Money Crashers LLC
Gain access to helpful resources and AI assistants
“Fintech has essentially digitized all areas of finance. In particular, there are many platforms that will help you track your budget, but there are also more tools now that can help you become smarter about your money, including Investopedia resources and AI financial chatbots that help you make smarter financial decisions.” — Ramona Ortega, My Money My Future
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The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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