How fintech solutions can help you create wealth

In years gone by, employees did not have to pay too much attention to their savings because they knew that they had a company or state pension that would kick in when they retired. However, the financial and employment landscapes are changing. People are living longer, and the reality is that most of us will run out of retirement savings eventually unless we are proactive in our wealth management efforts. 

Many people prefer to be self-employed, either running their own business or working on a contract basis. In addition, global and local financial markets are quite volatile, and people can no longer safely rely on a single pension coming in.

Fortunately, with the enhanced communications we have today, people are becoming more aware of the need for financial independence and are starting to pay attention when it comes to savings and investments.

Young people, in particular, are becoming more finance-savvy. It’s not just about saving for retirement but also about lifestyle choices. Social media and the internet have demonstrated a whole world out there that needs to be explored.

Getting started on a journey to financial freedom

Technology has also played a role in the creation of a number of innovative financial options, making the initial steps toward financial wellbeing quite easy. Some platforms also have entertainment value, adding a bit of fun to the process of saving money. Below, we take you through some of the fintech options available online.

Micro-investing

Micro-investing platforms allow you to put aside very small amounts of money to begin with, preferably on a regular basis. You can automate a small withdrawal from your paycheck every month before you get around to spending it.

There are no minimum deposits required, so anyone can start saving – the sooner, the better – and you get to define the rules. Options such as round-up investments will automatically invest the small change left over from your purchases, building up your savings without you even knowing it.

Some platforms will invest your money in share portfolios or exchange-traded funds (ETFs). This has an additional advantage as it teaches you about trading at the same time.

If you’re considering making use of a micro-investment option, be sure to do your homework. Some platforms also offer educational apps, helping you understand the markets and the various investment strategies that can be used.

Personalized financial planning

You can get reliable financial advice online now with a range of personalized financial planning tools. The customized advice is based on your financial situation and spending patterns and gives suggestions for suitable budget, savings and investment plans.

It also provides you with a long-term budget plan for house mortgages or retirement savings and helps you streamline your spending behavior so that you have more to put aside in a savings or investment plan.

Digital payment solutions

Platforms such as PayPal or mobile Apple and Google wallets give you access to global markets and provide easy payment options. Digital payment solutions have empowered people in the informal sector who don’t have bank accounts. It’s also good for the economy, as it encourages informal business and helps people create wealth.

Digital transactions are more economical than normal banking transactions, and the real-time updates make it easier for people with limited resources to keep track of their cash flow.

Building long-term wealth

Compound interest is possibly the surest way to build wealth. By investing a small monthly amount, you can build up an investment that will earn you interest. If you reinvest the interest you earn on that account, your savings will grow more quickly. Before you know it, you will have a substantial savings amount. The investment and reinvestment of interest can be done automatically so that there is no temptation to use that money elsewhere.

When opening an investment account, you can choose a platform that provides a financial literacy tool as part of the deal. Learn about the markets and various investment strategies.

Employment in the financial arena

Embarking on a journey to financial success is exciting. You may find that you enjoy the thrill of monitoring the daily fluctuations in the markets and making decisions to mitigate losses or increase your profits.

Employment in the world of finance can be both interesting and lucrative, with many specialized career paths that offer the chance of a successful future. Large financial institutions such as Bank of New York Mellon offer a wide range of internships for people who show an aptitude for financial services and wish to get a good grounding with the oldest bank in the US. 

Now there’s no excuse

We hope that this article has left you inspired to increase your savings today. All that it takes is a few clicks of a mouse. Make sure, however, that you investigate the options thoroughly, and if in doubt, talk to someone in the know. It’s never too late to create a wealth plan and start investing in your future.