Are you using technology to make managing your finances easier? If you are, are you worried about security? Chances are if you use any form of technology you are also aware that there is some risk that goes with the territory. But technology can be used and if you take certain precautions limit your exposure to some of the risks that go with making our lives easier. Regardless of if you use any form of technology to make your financial work easier risks can be mitigated by using some common sense and follow certain rules.
One area that technology has made easier is on-line banking. Regardless if you are on a computer or using a smart phone the things that you are able to do is almost limitless. With on-line banking you are able to check balances, transfer money between accounts, see if a check has cleared, verify if there have been any unauthorized charges to your account, or if you have a smart phone deposit a check with your phone’s app by taking a picture of the check. Even though there has been a recent trend of retail merchants having credit/debit card information stolen if the truth be told financial institutions have some pretty good security as they are liable for most fraudulent charges. Most banks and credit card companies have little or no liability to the consumer but getting them to cover the fraudulent charges can sometimes be a tedious task. The cost to consumers for these products is free in most instances and considering the convenience they provide a small fee is not unreasonable. $9.95 a month for bill pay can save you if you mail many bills and automatic bill pay can save you in fees in the event you forget to pay the bill manually. Overall banking is pretty high tech and fairly safe for users.
Insurance is another area that has benefited the consumer from embracing technology. Many insurance companies are paperless and by going on-line it allows you to keep up to date on your claims and any payments that are not covered by your plan. This access also allows users to monitor deductibles and benefits. And now smart phone apps even allow consumers to file a claim with the use of the app technology and the camera on their phone. Many insurers even have a home inventory service that policy holders can access through the Internet. And like banking the insurance companies are highly regulated and prone to fraud even when technology is not an issue. Most insurance companies provide free apps and services for a better insurance experience.
Personal finance is no different as it has seen technology make budgeting and saving all that much easier. With sites such as www.mint.com that allow users to enter all kinds of financial information to the site and monitor their financial positions. No matter if you are saving for a car or retirement these sites and apps for smartphones make this task all the easier. How can you expect to save if you do not have a proper budget? Well www.mint.com is a great tool that allows the user to track and monitor all things financial. You can link it to credit cards, banks, brokerage accounts, your mortgage, and even retirement accounts through your employer.
The area of taxes has been leaning towards technology ever since Turbo Tax became a common tax preparer software for home use. I personally have been filing my taxes online for at least the last ten years and I vaguely remember that if you wanted an IRS form you went to the US Post Office now you simply go to www.irs.gov and search for the form you need. It is free to e-file your federal taxes and the price of the software will vary depending on how sophisticated your tax needs are and range from free to about $150. Many states offer free e-filing as well so now anyone who has access to the Internet can file their taxes for free or a minimal cost. If you prepare you own taxes and have a lot of things to maintain and keep for your records I have, use, and recommend Neat Receipts to manage things like receipts. You can get a new portable scanner for about $180 and if you do not mind a used one try eBay.
Technology is great if used properly and the risks can be minimized with a little common sense and thinking. The power of computers and smart phones is amazing so why not take advantage of all that they have to offer.
