Why the Internet is a Game Changer for Personal Finance Management

The internet has indeed played a commendable role in organizing most ways people manage their personal finance making the process simpler more efficient and empowering to millions of people all over the world. The move from simple methods of using pen and paper in the development of a persons’ financial plan has also liberated people. The internet has played an important role in improving personal finance management and seven fundamental ways have been highlighted in this article. It has not only altered the approach that is being used to deal with it but also put through a revolution in it.

1. Access to a Wealth of Financial Information

The internet has recently made financial literacy easily attainable, and people are able to make the right decisions regarding their money. Before, the matter of money comprehensibility was a preserve of a few people such as the financial experts or those with financial education backgrounds. In the present day, information is very easily available through blog sites, pod casts, web casts, e-books, forums etc. This change has brought about an empowered society in a way that they can make decisions confidently when it comes to money, spending, saving, investment, retirement or even when it comes to future contraptions such as derivatives or virtual currencies.

This is because organizations such as Coursera, Khan Academy and Udemy have recently been developing expansive courses on personal finance, investment and trading which has resulted in self-education. It modifies the population to make the complex financial situations on their own, for most of the times without consulting the professionals. As a result of this, more and more people are taking responsibility over their economic destinies by being endowed with knowledge and understanding of the economic reality basing their lives on it.

2. Streamlined Budgeting Tools

Back in a time when there was no internet, one had to write down one’s budget down on a piece of paper, use a calculator, and receipts. From here, a situation of bad financial management developed. Real life budgeting applications such as Mint, YNAB and Pocket guard have made it easier since individuals can enter their expenditures and income in real time. These tools divide spending, pay for bills, and define financial targets – giving an idea of the user’s financial state. They also integrate with the bank accounts to give a real-time of the position of a person’s finances.

Due to this, the use of apps that are budgeting have become feasible in the use of smart phones. Not only do these platforms help people make more rational spending decisions, but they also assist them in maintaining their stated financial goals. To sum up, it is possible to state that internet has created conditions which do not allow the process of budgeting to become an unmanageable task of any man regardless of his level of numeracy. These changes have advocated for creation of positive financial management policies that enable people to manage their affairs effectively without much difficulties.

3. Investment Platforms and Robo-Advisors

Investing in the stock market has always been an exclusive activity due to the high costs of acquiring the services of stockbrokers and financial advisors. However, the newfound found internet has significantly revolutionized this area making it easier for anybody to engage in investment regardless of his or her worth. Robinhood, E*TRADE, and Fidelity, and many more have made investing accessible to anyone whether you want to buy stocks, bonds, ETFs, or even cryptocurrencies with low fees. This accessibility propels anyone with internet connection to the markets spurring a culture of investment that was hitherto the preserve of the elite.

With the use of digital applications such as betterment, Wealth front, and Elle-vest, people have changed their ways of handling personal finance since they offer cheap automated investment advice and portfolio management. These platforms employ hi-tech features to help in increasing returns by integrating and analyzing data that will depending on one’s his/her tolerance to risk, financial objectives, and time horizon to invest. The application of this technology increases access for new entrants with little knowledge or time to expend in investing or in new wealth building opportunities, hence encouraging people to invest and grow their wealth without restrictions.

4. Efficient Bill Payments and Online Banking

Self-organization of money has been made easier by the internet thus reduction of time needed in organizing their personal finances for example having to wait in line or write checks. Online services ensure that users can manage their accounts, make payments and pay bills among other services. Smartphone personal banking applications add to this convenience by notification of transactions; check deposits; and P2P transfers. This has helped many individuals to not only be able to monitor their financial status without necessarily going through a hectic process.

In this aspect Internet revolutionizes the way personal finance it helps individuals to automate how bills are paid since one can arrange to pay bills on a regular basis say for utilities, credit cards and loans among others. This decreases pressure and likely hood of fee additional charges not to mention detrimental credit ratings. Apps like PayPal, Venmo, Zelle and many others have sought to ease money transfers such that they seem like they are sending text messages. This has helped those people to have better financial prospects with improved mental load since they do not have to waste time managing the office work.

5. Online Savings Accounts and High-Interest Options

Availability of internet has brought a big change in the process of saving money, and especially on the attractiveness of savings accounts. Regular savings account with regular banking institutions are anemic in their returns hence not ideal when it comes to saving money for growth. Some of the online banks which are known to provide good interest rates and comparatively low charges include Ally, Marcus by Goldman Sachs, discover Bank to mention but a few which make them more suitable for individuals wishing to get the best out of their money. This Social change has greatly affected the position of people in the financial aspect, especially on the matter of saving money.

In addition, the possibilities of car-driving on web-based platforms provide many auto-saving functionalities that would enable users set up as well as obtain goals. For instance, Qapital and Digit take small amounts of money and transfer directly to savings accounts where it will be saved based on its spending habits or rules to save money. These automation changes have facilitated the manner in which people plan and save for rainy days, huge expenses or any business-like ventures. In other words, the internet makes saving easier and people increase their financial well-being and protect the future.

6. Debt Management and Consolidation Tools

Like any other aspect of personal finance, handling of debts may be difficult, although the internet offers solutions to debtors. Consumer debt tools and service such as Debt Payoff Planner and Unbury.me assist in designing proper debt pay-off processes and suggest snowball or avalanche methods. They provide a repayment schedule on the borrowed amounts and provide tools for visualizing debt repayments so that people remain interested in repaying the borrowed money. Most of these services are either cost-free or charged drastically low fees, thus, reason ailing persons across the income bracket can afford the services.

Lending Club and Prosper are some of the best-known peer-to-peer lending platforms which have slightly lower interest rates and more suitable debt consolidation opportunities than those of normal bank loans. These platforms help borrowers engineer credible investors for credit recovery and help them cut down on repayment costs to improve their consolidation of obligations. It has been described as a financial revolution since it steps up the process of democratizing finances while putting power back in the hands of the individuals. Online tools allow people to face debt problems, discuss repayment possibilities, and build a positive financial environment, becoming debt-free.

7. Financial Planning and Retirement Calculators

Many people have benefitted from easy-to-use online financial planning tools and retirement calculators. These tools generate answers depending on few inputs like the present saving, anticipated spending, and inflation rates, making it easier for a person. Tools such as Vanguard’s Retirement Nest Egg Calculator and Fidelity’s Retirement Score go a step further to give recommendations for the user to assess their retirement preparedness in a more basic way.

These tools help people to learn the economic consequences of such options as a change of retirement age or savings rates. This has made it easier for individuals to remain on track for their retirement needs, as they organize how to meet their financial needs in future. Being able to decide on financial aspects of their future on their own, and not relying on professional assistance all the time, is a sign of a great-shift in the concept of personal finance. Through the use of these tools the individual is well placed to plan for retirement and a arise of independent future.

Conclusion

Drastic shifts in personal finance have occurred through the use of the internet having access to what was once unavailable. Just with a few clicks in budgets, investments, and bill payment options, people have been put in charge of their lives. The role of the internet in personal finance should be fully harnessed regardless of the beginner or a professional in stock investment. These sources can be useful in guiding you towards your goals at a much faster pace and less hassle. Personal finance options are not going to come knocking on your door, so it is high time you looked for the variety of tools available on the Internet and took charge of your financial life!