Financial technology, aka fintech, is an integral part of modern finance. You likely interact with fintech on a daily basis; it encompasses things like banking apps, Paypal, Venmo, and investment apps.
These technologies have revolutionized the world of finance, helping to make finance quick, convenient, and accessible – and they can also save you some money.
Bardya Ziaian is an expert on fintech. He is the founder of SITTU Group Inc., a think tank company that deals in finance, technology, and investments.
He has also founded several other successful businesses, including Virtual Brokers Wealth Management. In this article, Ziaian shares several key ways that you can save money through the use of fintech.
1. Investment apps
There are many, many apps out there dedicated to helping you save money. From budgeting to investing, the options are nearly endless. According to Ziaian, investing in particular has never been easier.
“One popular approach that many apps use is the round-up method,” he explains. “These apps connect to your bank account and automatically round each of your purchases to the nearest dollar, and then invest the difference for you.”
These apps do often come with a monthly fee, so it’s important to weigh the benefit with the cost. However, if done right, they can provide you with an accessible, low-risk way to start investing.
2. Budgeting apps
As mentioned above, savings apps also include those for budgeting. While many use Excel sheets to budget (or simply don’t budget at all), there exists a wide range of apps for beginners all the way to experts.
For Bardya Ziaian, the most important thing is to start budgeting as soon as possible. “Don’t wait until you find the perfect system, because chances are, you won’t,” he says. “You don’t want to wait until you’re drowning in debt to start one! It’s better to have a simple set up and be saving consistently, than to have a super fancy system and no savings at all.”
For those looking to start saving, programs such as YNAB, EveryDollar, and Goodbudget are great jumping-off points for beginners. Again, make sure to weigh cost versus benefit, as many budgeting apps come with a fee.
And, be honest with yourself! If you don’t think you’ll be able to stick with a particular app or program, try to find a better fit. Starting a budget early is great, but sticking to it is key.
3. Paper and gas
Fintech can have indirect benefits too. Many banks now charge a fee for paper bank statements to be mailed to you, so looking at and keeping track of your balance electronically can save you a few dollars a month.
Another area of small, but potentially substantial savings? Gas and transport. Depending on how far you are from your bank branch, you could be saving a small sum of money by not having to make the trip to and from there.
“Even with small savings like these, you can see them add up over time,” says Ziaian. “And, if you wanted to, you could invest these small amounts to potentially gain even bigger rewards.”
Key takeaways
Overall, fintech provides us with numerous ways to budget, save, and invest our money. Weighing costs of subscription services is important, but don’t be afraid to spend a few dollars if it means saving a whole lot more – sometimes you have to spend a little to save a lot. There are thousands of apps out there, so try to find the one that best fits your lifestyle.
Above all, remember that the key is consistency, not perfection, and that even small amounts of savings can (and will!) add up.
