Published on June 9th, 2020 | by Sunit Nandi0
How to Manage Your EMIs Better with Technology
In a world of rapid digitalization, there are numerous ways how individuals can make great use of evolving technology to manage their money, create better budgets for their financial planning, along with saving a lot on their day to day purchases. From a simple yet comprehensive RD calculator to an app created for periodic reminders, today, there are countless apps and Softwares designed for specific financial needs. Know more how an RD calculator can help to manage your EMIs better during these times of technological advancement that has revolutionized the financial industry.
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Here are a few great technological developments that can ease the management of your finances and EMIs better:
- Automating Tasks: Numerous financial tasks are manual and repetitive. These can be automated using technology. For instance, investors can set up regular payment reminders to pay their EMIs on time and avoid heft late payment fees. Not only this, but investors can also fully automate the tasks of payment by proving their bank or card details for auto-debit and save themselves from the recurrent hassle of making deposits.
- Digital Wallets: Another attractive benefit of technology is EMI and other financial management is the emergence of digital wallets. Using a digital wallet helps investors avoid using paper currency or cards for various payments. Now individuals can easily make their payments Equated Monthly Instalments payments from the luxury of their home with just a few taps on their phone.
- Budget Creation: Technology has been a huge boon to the financial sector with all its features to help the investors make their financial life easier. Calculators such as an RD calculator and several other apps available in the market today that can be used to generate a budget. Investors can simply input their basic information such as the annual income and expenses and get a suitable budget that fits their needs as the output. This helps them to plan the amount of their EMIs and the number of EMIs they shall pay to clear off the debt.
- Better Tracking: Besides helping the investors avoid manual labor for various recurrent tasks, technology has also helped them manage their finances by tracking their transactions on a day to day basis. Technology can help investors diversify their portfolio and even ensure that the investments pay off. These apps also help track the shares, notify of new opportunities, and help them plan on how much can be paid trough EMIs each month.
- Setting-up Reminders: Banks and other financial institutions levy heavy charges on late payment of EMIs. Also, certain banks are levying a prepayment charge as well. This makes prompt payment of the EMIs a rather vital process. Investors often tend to forget the last day of their EMI payment and end up getting charged for it. There are apps and software in the market that can help such investors by sending them occasional reminders to suit their needs. These reminders can be used for making the EMI payments before the due date.
- Digitizing Services: Most of the investors are aware of the direct deposit services of the banks and other financial institutions. However, the majority of the investors are unaware of the various services that the bank’s official apps can provide them with. These apps can be used to send payments, view transaction history, request for funds, manage the various deposit accounts. This has made the process of buying things on EMI rather simple.
- Calculating the Interest and EMI Amount: There are diverse categories of online calculators that are available for free to the investors. These online calculators can be used for a variety of activities ranging from the maturity value that an investment can fetch to the amount of EMI that should be paid each month. Some of the commonly used calculators are the RD calculator, EMI calculator, FD calculator, home loan calculator, and education loan calculator. The RD calculator or the recurring deposit calculator helps individuals compute the wealth earned, interest accrued, and the amount that the investor will get on the maturity of the fund. Individuals who find the calculation of the maturity amount of an RD complex use this RD calculator to get quick and accurate results. Similarly, EMI calculators and loan calculators help in accessing the interest amount that would be paid on the principal to pay off the loan.
- Record of Receipts: Once the investors make the desired payments of their EMIs, they need to keep a record of their payments. Storing paper documents can be a difficult task as those are more prone to wear and tear and misplacement. Technology safeguards the investors here as well by providing digital space to store all their receipts. Investors can either simply click pictures of the paper receipts and save them for future reference or use an authentic app available online to store the copies of their receipts.
- Issue of Financial Errors: As fast as the technology is developing, even the occurrence of online fraud has taken a huge jump. Investors must make sure they gauge the authenticity of any financial opportunity. There are several apps available to help users understand the difference between a genuine financial tool and a fraudulent one. This should be used to avoid maying EMIs to an unauthorized party and to protect their money from any scam.