The Smartphone Advantage
It is no secret that we hold the most known information ever discovered in the palm of our hand through the innovations of iPhones, Androids, and simply the internet. Because these devices hold so much information and have so many excellent tools at our disposal, it would be a crime not to incorporate them into one's daily life.
From Google, to all the apps available to those with our smartphones, being financially savvy has never been as easy as it is now. Here are a few tips we suggest to be financially responsible with the help of your phone.
Look at your bank account daily
Something that I encourage most people to do is to check their bank accounts daily. People often prefer to avoid accepting the reality of how much something dented their bank account, such as shoes, amazon, or even rent!
My bank has an app, so it is all very easy to look at for real-time balances. Seeing how each transaction affects that number is crucial to budgeting your life and saving for the future.
It is also important to project out future expenses as you have money coming in. Every two weeks for me are major payments due: Miscellaneous expenses from the month and rent. I know roughly how much each will cost, which lets me know what is left over.
Knowing your "leftover" number is also very important, as it can give you an idea of what you want to contribute for retirement each month and what will be used to spend/save up for fun things like vacations or nice clothes.
Track your spending through apps
As previously mentioned, one of my major expenses comes from my miscellaneous expenses from the month. Through apps like Mint, one can track spending habits. Maybe you bought $400 in clothes for the month, and you had no idea. Or even $500 this month on gasoline alone. Using applications designed to help someone comprehend how much they are spending each month and what they are spending it on can help them manage their financial life for the better.
We also suggest that everyone downloads the EveryDollar app. This is the budgeting system the Ramsey Solutions team created to make budgeting effortless and, of course, in the palm of your hand. It is a zero-based budget, meaning it tells you how to spend every dollar in your monthly income to keep you in line with the parameters you set for yourself and to help you track your transactions, so you know you don’t go over what you have in the bank account. You can set goals for savings, paying off your debt (baby step 2), and even link it to your bank account with the premium membership, so you have in-the-moment numbers.
Set it and forget it- Automatic Investing
Lastly, one can track their investments with their advisor through apps like Fidelity, Vanguard, or Charles Schwab. Whatever one may contribute to these accounts from their "Leftovers" can be easily tracked through these apps on their phone.
Often people want to call their advisor and ask how their account is doing or how to track their contributions, etc., which is wonderful. But with the help of your advisor walking you through what you see on the app, you can fully understand the complete picture of your account to view at any time you would like.
Using smartphones to our benefit
Use these apps on your phone to your benefit. They are designed to help people overwhelmed by the intricacies of the financial world. They are more powerful than we can comprehend, so use them to see how they can help you stay more financially stable. We encourage you to start taking full advantage of these wonderful tools provided by our phones.
The power of speaking with your advisor
As overwhelming as the stock market, timing, capital losses, and more can become, always feel free to use an advisor you know to ask questions. It is our passion to help people understand these topics.
When it comes to the life work of our clients and prospects, no decision is ever taken lightly. No account value is disregarded because all concerns and questions hold such a heavy weight in a time like this.
We hope you've learned a great deal from this article and, more importantly, reduced some stress from your life today.
Please feel free to use Drew Hodgson to begin asking your questions. There is no too small of a question and no wasted time if you choose to speak with him.