Is Online Banking The Best Way To Track My Spending?
Although online banking has been available to the public for years, it has never been this convenient. With the ability to access an app or website at any time through a web-enabled device, you are much more inclined to begin using online banking in your everyday routine.
As we have previously mentioned, tracking your spending is one of the most crucial aspects to keep your finances in order. It is one of the many additional techniques to budgeting which allow you to gain enough confidence to spend freely. Online banking is one of the easiest ways of tracking your spending. Despite different banks offering different methods when displaying data, they all will offer everything you need. For example, an overview of your spending, making payments or budget categories.
Pros of Online Banking
With the world being so fast-paced, we need to find ways that keep us up to date. Previously, we may have consistently relied on bank statements or other forms of data that are sent to us in the post. But, these are either monthly, quarterly or annually, which could negatively impact us if we need information urgently.
Linking to urgency, online banking allows us to access everything we need you, whenever we want, whether it be 2 am or 2 pm. Due to budgeting apps and sites now being able to connect electronically to your mobile devices or laptop it only takes a few clicks to find what you’re searching for. When spending using cash, unless you write it down there is no way to know where your money has gone. Especially if you are reflecting on your spending weeks after.
Although, online banking allows you to review all of your transactions as soon as a few minutes after. Therefore meaning that you do not need to rely on anything which could cause you hassle when manoeuvering around. The last thing you want to do is miss a transaction and overspend, leaving you in debt. Although, if this does happen, there are plenty of options you can take including borrowing from friends or family, using savings or applying for a payday loan.
Cons of Online Banking
Despite online banking being very helpful, there are still multiple downsides to it. With technology constantly advancing and new updates being made, it just proves that the method is not perfect. But, the banks work to ensure that the apps and websites are working to the customer’s standards.
Firstly, one of the biggest downsides to online banking links to security elements. All online banking sites are designed to be as secure as possible. Some even take extra security measures using two-factor authentication and unique codes. But, unfortunately, there may still be the possibility of your accounts being hacked at some point.
Next, accessing your online banking is not as simple as we may think. To do so, you will need access to an internet connection of stable mobile data. Therefore meaning that if you desperately needed to check your balance or transactions, unless you had an internet connection, you couldn’t do so. Similarly, if the bank’s network is down, you also will not be able to connect. Thankfully, depending on your bank the fixes are usually made throughout the hours of the lowest peak.
As you can see from the pros and cons above, using online banking for tracking your spending is something that could be good or bad. Some people will benefit massively from the method. Whereas, others may prefer more of a traditional approach when managing their finances. Something which works perfectly for you, may not for some else. After weighing up both of the positives and negatives you may have been able to choose which one would suit you the best. But, if not, there is plenty of time to trail multiple techniques to put your mind to rest.