There is not a day that goes by that we are not inundated with “NEW FINANCIAL TECH”! It’s like a game of 52-pick-up where all these new financial technology trends, apps, and experiences come flying towards us at the speed of light! We look like crazy people either trying to catch them all or swat them away. Some people are loving all these new opportunities and others are sweating with anxiety wondering how to even understand what all these new “things” are about!
With all these new ways to SAVE and MANAGE money, why are we still way behind in conquering DEBT?
According to newyorkfed.org, as of Q2 of 2023,
“Total household debt rose by $16 billion to reach $17.06 trillion in the second quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit. Credit card balances saw brisk growth, rising by $45 billion to a series high of $1.03 trillion. Other balances, which include retail credit cards and other consumer loans, and auto loans increased by $15 billion and $20 billion, respectively. Student loan balances fell by $35 billion to reach $1.57 trillion, while mortgage balances were largely unchanged at $12.01 trillion.”
Trillions and Billions! Apparently we aren’t slowing down!
It doesn’t matter which fancy financial tech you use, what matters is WHAT YOU DO with it!
All of these fancy tools want to give you better experiences, seamless transactions, no-brainer ways of growing wealth, and all the secrets already built-in so you can experience joy with your money. That’s what they want for you and it doesn’t sound bad! BUT. What they don’t tell you is that you actually have to be knowledgeable about your own finances and financial habits first. What do I mean?
- Budgeting: there are more budgeting software examples out there than ants on the ground, but if you don’t stick to YOUR plan, that software will not magically make your debt get smaller. YOU have to discipline yourself towards your goals and then use the software to help you do it.
- Personal Finance Apps: another great tool when used with a plan / goal in mind. However, without your own guidelines, they will do little to actually help you achieve your goals.
- Gateways for Payments: who wouldn’t want a more seamless buying experience? More and more banks, online businesses, and platforms are finding new ways to help consumers pay for the things they want. The problem with making “buying” easier is that…it makes buying easier! Temptation galore! Gateways for Payments can also be Gateways for Debt.
- On the more “people” side:
- Financial advisors and coaches: they are GREAT help, but if you’re not willing to be teachable or humble enough to admit bad money habits and change, your financial circumstances won’t change.
- Financial Influencers on Social Media: again, lots of great information and I love a good financial infographic, but unless you actually take action with their advice (if it’s good…so much truth gets mixed in with noise), you won’t change your habits for the better.
So how do you choose the best tech for you?
Do these 3 steps FIRST and then you will get a clear picture of which financial tech will work best for your personal habits and which ones will get you to your financial goals!
- Write Down Your Financial Dream: create a detailed view of where you want to be financially in 5 years.
- Understand Your Habits and Make a Decision: do a deep dive on your finances to understand your spending habits, and decide what has to change in order for your 5 year financial dream to happen.
- Get Accountability: make a contract with yourself that you will commit to this change and find someone (family, friend, coach, advisor) to keep you accountable. Everyone needs this!
I’m not joking! It’s that simple to start. Awesome money management starts with YOU first, not the software! When you have those three things in place, then look for the RIGHT technology for you. One that will give you a CLEAR view and understanding of your journey, that will help monitor your spending, and preferably one that is not a crazy subscription where you’re paying chunks of money to watch chunks of money leave your account. Get confident with your finances and it won’t matter what new technology gets created because you’re already on the right track!
Need help getting started? That’s what I’m here for! We can have a complimentary consultation to chat and see where I can help.
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