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Streamlining Finances the Modern Way

Jul 9, 2021

If you look around you, mobile wallets and fintech innovations have penetrated our daily lives. Apps and online platforms are making it easier to address a financial situation (read: being in debt, short of funds, or with meager savings).

For millennials and the GenZ set who are accustomed to tech and open to change, in particular, traditional systems that do not work necessitate shifting to alternative ways of getting finances in order. So if a traditional financial institution has lapses in service, they do not hesitate to shift to a digital bank.

Indeed, digital banking has not only been speeding up consumers’ money transactions, but  also enabling many individuals to streamline financial situations. What does streamlining mean? When you are streamlining your life, you remove clutter as much as you can and handle the many day-to-day tasks you need to do in simple, fuss-free manner.

Similarly, to streamline your financial life means to organize or fix finances, and to keep an open mind about new income streams and promising investment options. Some of the ways a number of people streamline finances/income is by consolidating loans. Another is by setting up auto payments for recurring expenses, or having a direct deposit account, like a prepaid debit card, where funds like stimulus payments and tax refunds are deposited. Funds are received faster than a check payment.

Tools to Help Take Control of Your Finances

At a time when most people are getting back in shape financially, new technologies, web-based tools, platforms, and mobile apps – or fintech – are paving the way for people to get finances under control. The flip side is that innovations, like today’s most popular mobile wallets, may be driving individuals to spend.

One can strike a balance, as those who have lived on the edge of financial collapse advise. The key to a worry-free financial state is to learn how to control spending, start saving now, pay off debt, free up funds for investment, earn, and ditch financial stress for the long term.

Now what works for one person may not necessarily be a surefire financial game-changer for another one. People have different risk tolerances and financial targets or goals. There are aggressive stock market investors who put themselves out there and risk finances/income; and there are moderately conservative individuals who are willing to handle a little risk. Most millennials, especially those who are tech-savvy, have been investing in bitcoin and ethereum way before Covid-19 appeared in the scene; some have FOMO (fear of missing out) and so invest for thrill or fun.

On the other hand, there are very conservative money handlers who hold on to poorly performing options, doing nothing to improve financial returns. Yet there are many modern-day strategies to grow one’s money, including reliable peer-to-peer funding platforms like Blend.ph.  It was developed by Inclusive Financial Technologies as an online platform to connect borrowers who need funds with lenders who want to grow their wealth.

Across the world, fintechs have pushed aggressively into the lending space over the past few years. In the Philippines, Blend.ph has steadily built a customer base for loan products with flexible interest rates.

It pays to enlist the help of such companies who can understand people’s ‘money for life’ or for business needs. Indeed, there really are  lots of personal finance help that can be obtained nowadays with a click of the mouse. You just need to discern reliable ones from the dubious entities.

It is also interesting to note that these days, an investor may be young and with minimal funds to set out on the road leading to better finances. As one netizen once tweeted, “If you are young and just graduated, don’t really bother on our parents generation’s self-entitled wealth but listen to cool peeps…” As shown by money-smart millennials and GenZ youngsters, one need not have a hefty amount of inherited wealth to invest.

Learn Better Financial Planning

One is never to young nor too old to start saving and learning how to control spending. Many young people nowadays fall under extreme categories – those who have been taught by a parent to save and budget for future benefits, and those who spend extravagantly and irresponsibly. In between are varying levels of those who try to save, and fail, and try again.

In his book, “Money Makeover – Escape Debt, Save For Your Future, and Live the Rich Life Now,” CPA Conor Richardson stated the importance of re-examining one’s financial situation, and coming up with an actionable plan to streamline or simplify finances.

Richardson, who has worked with early-stage startups and has been helping millennials unravel how to manage personal finances, recounted his own personal experience of being stuck in a financial situation that was not producing what he wanted. He said improving one’s financial life or condition boils down to undertaking the key steps: eliminating debt, creating a budget (and sticking to it), and saving for the future.

It pays to heed good advice and testimonials from financially literate people who have been “there” and now want to pass on their knack for getting finances in order or money management to help others. People are facing problems as it is. Financial stress need not be one of them.

So rather than wait until you are way past your prime before uncovering alternative ways to grow your money,  use the best tool now to change your financial future for the better: set up a budget and live within your means.

Living within one’s means requires inner discipline. Strive to set aside a portion of your earnings for savings like an emergency fund, even if you allot a huge chunk for needs and wants. While you are at it, you might as well explore a tried-and-tested way to earn by lending online or offering finance help through a P2P platform.

P2P Redefines Lending in Covid Era

Streamlining finances the modern way as a lender can be done in hassle-free manner. Beforehand, get your finances more organized, and track where most of your earnings and bonuses are going. Even millennials can cash in on earning through lending, especially since they are open to improving the status quo and learning about novel ways to help with finances of their families.

Since the pandemic may have made people more money-conscious, unnecessary spending on clothes and trips that can wait, as well as other indulgences have been halted momentarily. The other plus side of P2P investing  is that investors  can start  small, stay invested and reap good returns. Accumulated returns can be allotted for travel, or home improvement, a child’s future education, or some other financial goal.

Overall, personal investment decisions need not be highly stressful nor too complex. Use a trusted P2P funding platform like Blend.ph to diversify your investment portfolio. For FAQs and to learn about the necessary tools and options to streamline financial life and grow your investible surplus funds, visit www.blend.ph/investor/.