4 Ways to Organize Your Finances by Going Digital

Technology can really help us simplify our daily lives, especially when it comes to managing personal finances. For example, here are four ways going digital can help you organize your finances while saving you time, money, and stress.

1. Develop a Budget with Spreadsheets

Developing a personal or family budget is one of the most useful ways to organize your finances. By tracking your monthly income and expenses, you are able to know how much you’re spending and on what, and then use that to optimize your buying habits and save a lot of money in the long run.

Despite these advantages, only 4l% of Americans have a budget! This means that more than half of Americans are not keeping track of their finances.

Luckily for us, new technology has made the process of creating a budget easier than ever. Free online spreadsheets, such as Google Sheets, are easy to learn and there’s even a free budgeting template for you to use. 

Once you’ve made a budget, you’ll quickly see where you can cut back. Then you can start looking for ways to put the money you’re now saving to good use such as establishing an emergency fund. Experts recommend that you save between 3-6 months of income in an emergency fund in case an unexpected life event or expense comes up. 

Another valuable way to increase your savings is through the use of an expected expenses fund. This is a long-term savings account meant for expenses that you can reasonably expect to pay within 3-5 years, such as new home appliances, car maintenance, vacation, and medical expenses. By setting aside funds for expected expenses, you won’t be unprepared when you inevitably incur these costs.

2. Choose to Do Your Banking Online.

Before financial technology became as prevalent as it is today, purchases were made with checks or cash. This created a ton of paper clutter, including bank statements, bills, and cancelled checks.

New online bank accounts make it possible to bank on the go. This means you can have direct access to your finances at all times. You don’t need to set aside time to drive out to your bank to deposit checks and make transfers; now you can do it all from anywhere.

Online banking is a great way to organize your finances and better manage your money. It can even be used alongside budgeting apps to help you keep track of where you’re spending. 

3. Organize Your Finances in Sync with Your Calendar.

Developing a personal schedule as part of financial planning may be confusing at first. Having a weekly or biweekly schedule planned out gives you the opportunity to prepare for expenses that may be incurred throughout the week. 

There are a lot of great calendar apps out there, but most phones have one pre-built into them. Keep a running calendar with upcoming events. Include the cost associated with those events such as movie tickets, birthday gifts, or fuel costs to get you from point A to point B. Also note on your calendar upcoming pay days and bill due dates. This will help you prepare for expenses ahead of time, so you will never be left scrambling to find cash at the last minute.  

Another great way calendars can be useful is for reducing expenses. For example, instead of making a special trip to the supermarket, you can plan to do it on your way home from an appointment to reduce fuel costs. Even better, plan to run all your errands at one time and map out the most efficient route.

4. Utilize Online Financial Calculators.

If you’re about to make a big purchase, one of the worst things you can do is go in blind. This is especially true for car and home purchases, due to their high cost and the frequent need to take out a loan on these expenses. Doing your research ahead of time lets you know exactly what your cost will be and can help you figure out what you can best afford with your budget. 

Figuring out the costs isn’t easy though, especially if you aren’t someone with a lot of experience with math and finance. Not to mention that financial calculators can cost $100 or more! Thankfully, there’s now the option to turn to online financial calculators to help you easily calculate any payments you might need to make.

Not only are these calculators great for figuring out mortgage costs, but you can also determine the future value of your investments. This can be super beneficial when you’re deciding where to best allocate your retirement investments, and how much your 401k and Roth IRA will be returning. 

To use a financial calculator online, you will need to know the meaning of five different variables:

FV = Future Value
PV = Present Value
PMT = Payment
N = Number of Periods
I = Interest Rate

Then, simply input the four variables you know into the calculator and have it solve for the unknown value! Most online calculators will have this information on their websites to help walk you through the calculations.

By budgeting and putting money aside for life’s extra expenses, you’ll stop worrying about where your next paycheck is going and start enjoying life more. What digital solutions have you found helpful to organize your finances?

Kristen is a content developer who frequently writes articles about topics in lifestyle and personal development. The primary focus of these articles is to provide her readers with insights on personal finance, staying organized, and living a happy life.

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