Imagine drinking your morning coffee wearing pajamas. In just a couple of clicks, you can see your future financial picture. This sounds like an impossible dream, right? Online financial planning has become a reality, read this.
It’s no longer necessary to sit with a suit-clad advisor, nipping in agreement as you secretly wonder if you left the stove on. Now, everything is at your fingertips. This digital treasure is a real gem.
What are the benefits of using an online advisor? How do you plan for retirement? How do you manage your debt? To begin, you could figure out what your monthly spending is. Knowing what you want is the first step.
We’ll now discuss tools. There are many apps and sites that promise you will become the next Warren Buffet. Apps can be free or expensive. But remember: price doesn’t always equal quality. User ratings and reviews are a good place to start. Avoid any app with more ratings of 1 star than an Oscar-winning movie.
The robo-advisor is a very popular choice. These digital wizards will manage your investments based upon your tolerance for risk and your desired goals. You can think of them as an autopilot when it comes to investing. While you are relaxing, they will handle every detail.
But don’t get too comfy! Even though automation is available, you should still be involved. Make sure you check and adjust your account as necessary. You should adjust your financial plan as you go through life.
You can also plan online using apps such as Mint (You need a Budget), or YNAB. The apps are synced with your account to allow real-time tracking of your expenditures. This is like your personal accountant who will not judge your avocado toast habit.
Are you familiar with peer-to peer lending platforms? Online lending services let individuals lend money from their own bank accounts. Although it is more risky than traditional saving accounts, the returns can be higher.
All plans include taxes. TurboTax and other software can save you money when April 15th comes around. By using the software, you can save lots of money.
We must not forget the importance of education. Khan Academy and Coursera offer, as examples, free online courses covering personal finance topics ranging from budgeting basics through to advanced investment strategy. The power of knowledge can be felt in this case.
Not everything in cyberspace that glitters is gold. Internet scams can be found in all corners, waiting for unsuspecting victims. Check credentials before investing in online or giving out personal details.
Technology has changed the way financial planning is done. No one could have predicted it. With great power, great responsibility. (Thanks Uncle Ben!) Use these tools and continue to learn.
Navigating online financial planning doesn’t require rocket science, but savvy maneuvers are required.