When you need directions, do you reach for a map or type your destination into a GPS or smart phone? Paper maps are nice, but they’re old school in some respects. They can’t tell you if traffic’s backed up or if there’s a closed road ahead. But an app can! Technology has changed the way we manage our finances. Be sure you’re taking advantage of these new tools!
Paper payroll checks are like maps. They still work, but having direct deposit is easier, faster and more convenient. No more trips to the branch or lost checks. And you have immediate access to your money. You can direct money into several accounts, too. Tuck some cash into a savings account used as a vacation fund every payday. Next summer’s trip could be paid in full before you leave!
Even if you’re careful, it’s possible to miss a loan or credit card payment due date and get hit with a late fee. Online billpay can help. Arrange to have payments sent automatically from your account on the date you choose. Or set up reminders and make payments yourself. To avoid overdraft fees, be sure you have enough money in your account to cover the money going out.
Real time budgeting
Keeping track of how much you spend, save and owe has never been easier. Digital money management tools allow you to set up a budget and sync all your financial accounts. This gives you a real time snapshot of your finances. You can monitor your progress toward financial goals. Then make the necessary adjustments based on your spending.
Paper maps may still have their place in your life, just like your checkbook. Digital tools, however, can tell you more and help you manage your financial life better than a ledger of plusses and minuses.
Article provided by Local Government Federal Credit Union.
The advice provided is for information purposes only. Contact your financial advisor for additional guidance.