S3Corp. Tech Blog

5 Tech Tips to Save Money

Budget with Precision

Creating a budget is essential for saving money, no matter how much you earn. It’s a common mistake to assume that a higher income automatically leads to more savings. In reality, people tend to spend more when their earnings increase. To ensure savings, you must actively plan your finances. Budgeting apps like Mint or You Need a Budget (YNAB) are excellent for tracking expenses and identifying areas where spending can be reduced.

For example, if you notice you’re spending $600 a month on groceries, a budgeting app can help pinpoint wasteful purchases. By setting a goal to spend only $400, you can save $200 monthly. This change might involve meal planning, avoiding premium products, and using what’s already in your pantry.

For those who struggle with overspending, a zero-based budgeting method may work better. This method allocates every dollar of your income to a specific purpose—be it bills, savings, or discretionary spending. Apps like Coin Keeper or Mvelopes can help implement this system digitally. Assigning a portion of your income, such as 10%, to savings ensures you prioritize it over non-essential expenses. By adopting these strategies, you can easily save $300–$500 monthly without feeling restricted.

Monitor Your Finances Regularly

Keeping track of your accounts is vital for financial security and savings. Apps like Prosper Daily connect with your bank accounts to monitor transactions, alert you to suspicious activity, and identify errors like double charges. While many credit cards offer robust account monitoring, banks often lag in providing such detailed oversight.

Failing to detect fraudulent charges quickly can result in drained accounts, and it might take weeks for banks to recover your funds. Prosper Daily helps bridge this gap, offering both security and budgeting features. Its competitive feature allows you to compare your spending habits month-to-month, encouraging better financial discipline.

Using tools like Prosper Daily ensures that your finances remain secure while helping you refine your budget, paving the way for consistent savings.

Analyze Investment and Advisor Fees

Saving for retirement can feel challenging, especially with other financial obligations. Many people, particularly those with employer-sponsored retirement accounts like 401(k)s, lack visibility into their accounts. This oversight can lead to costly inefficiencies, such as high advisor fees.

Personal Capital is a comprehensive app that links to your retirement accounts, offering a clear overview of your finances. It analyzes advisor fees and compares them against industry standards. Even small differences in fees can have a significant long-term impact. For instance, a 0.5% difference in fees might seem negligible but could cost you tens of thousands of dollars over several decades.

As a case study, consider a retirement account incurring higher-than-average fees. By switching to a lower-cost advisor after using Personal Capital, you might save over $100,000 in 40 years. This app not only identifies potential savings but also simplifies the process of making necessary changes. Within an hour, you can set up the app, review your account, and start implementing cost-saving adjustments.

Automate Your Savings

Waiting until the end of the month to save is a common pitfall. More often than not, there’s little left to save once other expenses are covered. Automated saving tools like Digit and Acorns solve this problem by setting aside small amounts in the background.

These apps make saving effortless. For instance, they can round up purchases to the nearest dollar and deposit the difference into a savings account. If you make 20 purchases a week, this method alone could save you $40 a month. Over a year, this adds up to $480—money you likely wouldn’t miss in your daily spending.

Acorns also allows you to schedule regular deposits. Skipping a $4 daily coffee run and redirecting that money to Acorns can yield $120 in monthly savings. Over a year, this simple habit could generate $1,440. By automating savings, you remove the temptation to spend and make steady progress toward your financial goals.

Stay Educated with Financial Advice

Knowledge is a powerful tool for managing money effectively. Podcasts like The Dave Ramsey Show and Radical Personal Finance provide actionable advice to improve your financial habits. Listening to these shows can inspire new strategies, such as debt reduction techniques or investing tips, potentially saving you hundreds or thousands of dollars.

Time constraints shouldn’t deter you from gaining financial insights. Listening to podcasts during your daily commute, workout, or morning routine allows you to absorb valuable information without dedicating extra time. Even 10 minutes a day can add up to one or two full episodes per week.

Expanding your financial knowledge helps maintain motivation and ensures you stay on track with your savings goals. By consistently applying the advice you learn, you can maximize your financial potential and achieve long-term success.

Combine Technology with Discipline

Saving money doesn’t have to be difficult or time-consuming. By leveraging the right apps and tools, you can take control of your finances, cut unnecessary expenses, and build substantial savings. Whether you’re budgeting aggressively, monitoring accounts, analyzing advisor fees, automating savings, or learning through financial podcasts, each step contributes to a more secure financial future.

The right technology simplifies the process, making it easier to achieve your goals. Tools like Mint, Personal Capital, and Acorns empower users to save effectively while reducing stress. Combine these resources with disciplined habits, and you’ll be well on your way to financial stability.