Financial wellness is becoming more important by the day. With expensive rent, inflation, and high gas prices all putting pressure on our budgets, finding ways to save money is crucial. A lot of recent technology has gone towards making life more convenient, but financial tech (fintech) is actually making a real difference.
Some fintech innovations can lower your monthly bills and lead to increased financial wellness. These are some of the most popular examples.
Knowledge is Power
When dealing with expenses like insurance in the past, consumers were at a disadvantage. We had to rely on the information our insurers gave us. Now, it is easy to buy cheap insurance online. Not only do you get the most up-to-date guidelines online, but you can action it immediately rather than waiting to speak with a broker.
The influence of this kind of fintech goes beyond the information on insurance itself. You can use calculation tools to calculate just how much insurance you need. You can then use comparison tools to find the cheapest provider.
Save And Invest With Ease
Everyone knows that they should be saving. It is something we are taught from a young age. Unfortunately, that lesson rarely comes with practical training. We are left to figure out how to save money ourselves. Many people put saving off because they just don’t know where to start.
Fintech companies are making saving money easy. Budgeting apps will give you a rundown of everything you spend and where you can cut costs. They will show you just how much you have to save in an average month.
Once you have found money to save, you can use apps to invest that money in savings accounts. Alternatively, you can choose to invest that money. There is a ton of information about how to invest online. Furthermore, you can get apps that let you invest in everything from Forex to cryptocurrency.
There are also smart ways to save money without having to think about it. Some banking apps give you the option to automatically save the ‘change’ from every transaction you make. While you are starting with small sums, they can quickly add up.
Transfer Money Internationally For Cheap
More and more people are becoming a part of the gig economy. One of the huge benefits of the gig economy is that you are not limited to working for companies near you. For this reason, many Americans now do jobs for companies around the world without leaving the comfort of their home offices.
These freelancers face a common problem. They get paid in foreign currencies and have to convert that money to US dollars. In a highly globalized world, you would think that banks make this easy and cheap. However, the reality is that foreign exchange through banks is still slow and expensive.
Fintech companies have popped up in the US and around the world to help deal with this issue. You can now find apps that allow you to get paid and convert your money to dollars with no fuss and minimal fees. You can even get products which get you a fixed exchange rate so that your income doesn’t vary from month to month.
These same companies make ecommerce easy and affordable, even for people with no business experience. When selling goods online, figuring out the best way to get paid is crucial. In many cases, converting all the money you get into dollars immediately is not necessarily desirable. For this purpose, money transfer companies now offer multi-currency accounts.
With a multi-currency account, you can hold and spend money in a foreign currency. Instead of paying fees or waiting for transfers to go through, you have accessible money to spend around the world.
Fintech companies are not just making life more convenient. They are also making it easier to achieve financial wellness. In this day and age, with prices all over the place, that is more important than ever.