Crunching Numbers: 4 Methods of Digitizing Your Finances

In today’s uncertain climate, everybody is craving the comfort of financial security. According to a recent survey, as many as 75 percent of adults in the United States say they’re living comfortably. However, 25 percent of these adults don’t have any savings for their retirement. As many as 27 percent will have considerable difficulty coming up with $400 in case of an emergency.

Part of what makes finances so tricky is keeping track of them in the first place. You can make handling your finances easier by digitizing them. Below are four methods you can use to upgrade your financial management using the latest technology.

1. Record Finances Digitally

The first step to getting a handle on your finances is by having an accurate picture of all your assets, revenue sources, and financial obligations. Although you can do this the old-fashioned way, by jotting them down in a notebook or on a sheet of paper, you can do so much better.

Create a dedicated spreadsheet on your computer for each of the following:

  • Revenue sources. These include income from your job and any other sources of revenue.
  • Financial obligations. Such as auto loans, student loans, and your mortgage.
  • Assets. These are property you can sell in case you need to, like your car, real estate, and investments.

These spreadsheets will let you see the bigger picture with your finances. Remember to update them regularly and secure them in a flash drive and upload them to online accounts.

2. Use Applications

Keeping track of your everyday spending is essential if you want to stay on top of your finances. With this information, you can see where you could be overspending and how you can trim your expenses. Although its ideal if you can save all your receipts, you may not have the time or the patience to do so.

Luckily, there are multiple finance apps you can use to help you in this regard. Aside from helping you keep track of your finances, some of these apps can also manage finances and even open new avenues for income.

3. Try Online Banking

Going online

Financial institutions have been at the forefront of technological development for years. That benefits you since you can choose to switch to online banking. These applications and software allow you to deposit your checks and transfer cash without leaving your home. From your smartphone or laptop, you can manage your bank accounts conveniently. Online banking is also handy for reducing exposure and maintaining social distancing, which is incredibly vital in today’s health crisis.

4. Digitize Your Paperwork

While you’re digitizing your current finances, you also need to make sure your paperwork and other essential documents are secure. You can achieve this by either scanning your documents into your computer or taking pictures of them with a smartphone. Upload these images on a hard drive and to an online platform, such as a cloud computing service. Although you should still keep the hard copies of your documents safe from damage, you can rest assured that should anything happen to them. You have their digital copies to fall back on.

Financial security is the goal of every adult. Today’s technology provides you with the best methods of accomplishing this goal in a more manageable and more convenient way possible.

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