Saving for your first home can be a challenge for most of us, and this fact hasn’t been missed by financial technology (fintech) companies, who are coming up with new ways to make money management easier (https://www.huffingtonpost.com/nathaniel-sillin/fintech-is-changing-mone...). So how do they help?
Understanding where you’re spending money is often the first step towards saving, and digital tech can help here. Lots of fintech apps will automatically tag your transactions so you can see at a glance how much you’ve spent on things like groceries, eating out, entertainment or bills. One of these is B, a digital bank whose handy app also lets you create your own tags for those spending habits that are personal to you (https://www.youandb.co.uk/banking-app/).
Once you understand where your money goes each month, it’s easier to see where you can start cutting back. Setting a budget will help you stick to the new sacrifices you’ve made, and many fintech apps offer budgeting tools that let you set budgets for different spending categories. Each time you make a purchase, your budgets will update automatically so you can easily see what you’ve spent so far and what you’ve got left. That’s much easier than updating a spreadsheet manually!
While your main goal might be saving for a house, you might also have shorter-term goals, like saving for a holiday or a rainy day. If you lump all your savings together into one account, it can be hard to remember how much money is supposed to be for different things.
Lots of fintechs use a feature called savings pots to help you manage your savings. This feature lets you separate your savings into different pots with different names and goals, while keeping all the money in one account. Some fintech apps even round up your purchases and add the ‘loose change’ into a savings pot for you.
Are you ready to try out some new digital tech to help you save?