Fintech has transformed financial services for millions of Indians, simplifying transactions and boosting digital payments, especially among Millennials and Gen Z with the use of personal finance apps. Wallets are becoming obsolete as digital transactions surge. The Ministry of Electronics & IT reports a rise. It went from 2,000 crore transactions in FY17–18 to nearly 9,000 crore in FY21–22. Transaction values rose from ₹1,962 lakh crores to ₹3,021 lakh crores.
Phone banking offers convenience, making India the leader in digital payments, with 46% of global transactions in 2022. People can instantly access money and make payments via QR codes, while embedded finance and insurance have become more straightforward. Personal finance apps are crucial, providing detailed tracking of income and expenses. This secure tracking enhances money management and helps users follow sound financial plans.
Monitor Your Investments
Popular budgeting apps track your stocks and mutual funds. They show your portfolio’s value and even handle SIP payments. Plus, these apps display your returns, helping you make decisions. You can also get alerts for dividends, interest, and investment maturity. Some apps let you model and diversify your portfolio.
Manage Your Loans
Most of the budgeting applications can be used to manage several kinds of loans, for example, personal, home, and student. This means you can follow the balances that are due, dates of payments that are due and interest rates in order not to miss your payments. A few apps also offer tools to help you calculate loan amortisation, where you can adjust the repayment terms, and see how an added payment or refinancing would affect the overall repayment schedule. By consolidating all your loan information, you can come up with a strategic plan of paying off the loan and at the same avoid being charged extra interest fees.
Enhance Your Financial Planning
Integrating investment monitoring and loan management into your budgeting app ensures a holistic view of your finances. You can balance investment growth with debt reduction, optimising your financial health. For example, you might see opportunities to pay off high-interest loans faster while tracking your investments’ performance. This comprehensive approach allows you to make better decisions, ensuring long-term financial stability and growth. A few finance apps can also suggest the best investment plans to earn regular monthly income, helping users manage their finances more effectively.
Keep To Your Schedule
Budgeting apps alert you to upcoming bills, credit card payments, EMIs, and loan repayments. You can disable these alerts, but they help with financial management. Some apps even forecast bill impacts on your budget. They also suggest how to avoid late fees and protect your credit. By setting up automatic payments, they simplify bill and loan EMI payments. A novel feature is their integration with a calendar. It shows the due dates for bills, payables, and loans.
Without a doubt, budgeting apps are practical money management tools that give you back control over your finances in a useful and organised manner. Although they are essential to your financial health, not all budgeting apps are created equal. Examine the available budgeting apps and select the most appealing to you.
