The technological revolution over the last couple of decades hasn’t just affected the way we entertain ourselves: it also had a profound impact on the way we approach building our wealth says wiley.com.
Whereas in the past, building wealth was a difficult task, requiring a great deal of knowledge of the technicalities of finance, tech has made the whole process a lot simpler. Thanks to the proliferation of digital technology into every facet of our lives, managing our finances is easier and more straightforward than ever before. Here are some tools you should be using right now.
Tip #1: Robo Advisors
Financial advisors were often used by the rich and powerful to advise them on how to save and invest their massive fortunes. In short, it was a service for the wealthy, and not for everybody else. But technology has been a democratizing force: practically every service once offered by a financial advisor is no available for free with robo advisors. These advisors can do things like automatically rebalance one’s portfolio, allowing people to build wealth over the long haul.
The great thing about these robots is that they don't care how much money you actually have in the bank. They’ll work just as hard looking after your $100 portfolio as they will your $1,000,000 portfolio. Granted, high-quality robot services will charge feeds, but compared to what you would have paid in the past for the same level of human assistance, it’s still small.
Choosing a loan in the past meant spending a couple of days walking around to visit local bank managers and negotiating rates. The vast majority of people didn’t want to spend the time doing that, so they just chose the first loan that came along, breaking the so-called “buying cycle.”
But thanks to sites like mortgageloans.co, that’s all come to an end. Now obtaining a loan is similar to shopping for products on Google. All the prices from the various vendors are displayed on the screen, and it's up to the buyer to select the combination of price and quality which best suits their needs. When sellers have to compete directly with each other, buyers end up with the best prices.
Tip #3: Personal Financial Software
When it comes to managing one’s finances, there are all sorts of tools out there. Mint, Moneydance, YNAB - all of them are viable options.
These software tools allow you to keep track of both your income and expenses and enable you to plan effectively for the future. Though it wasn't always the case, these apps are now surprisingly user-friendly. Mint is known for its excellent user interface. YNAB is known for its ability to instill financial discipline by forcing users to ascribe every dollar in their account a purpose.
Tip #4: Wealth Calculators
Have you ever wondered whether savings or investments are your best option? Well, thanks to Wealth Calculator, you can get a quantifiable answer. The calculator tells you how much money you stand to make by putting your savings in a savings account versus investing them in assets.
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