Why We All Need A Personal Finance Management Tool?

Following this article on Seedly, we thought it would good to further expand on the Personal Finance Management space in Singapore and equally applicable throughout ASEAN.

Singapore banks are well-established and do their job as a bank pretty well in general. On the other hand, what they lack is the speed and agility of a young company to provide tools to help its consumers to do something better and/or faster. Personal Finance Management is among the few areas targeted by young companies: there have been numerous players in other areas helping consumers to compare credit cards, loans and savings accounts.

We picked 3 areas that are worth learning about and exploring tools to learn about to better manage one's finances. While the focus is Singapore, the lessons are equally applicable in other countries too!

  • Credit scoring is omni-present in a country with over 8 millions credit card in circulation. But it is a topic that most people probably tend to ignore and thus, this could lead to some problems
  • Investing is what the rich do, what about the average Singaporean? Well, it has been a rising trend in the past few years about financial bloggers to cover "How to start investing"
  • Budgeting is a necessary starting point to both investing and credit scoring. It all start with a budgeting app (Read reviews) and a little bit of discipline. Read here and here
  • Networth Tracking is a bonus area to look into - a great way to know if you're progressing in your financial literacy and improving your financial situation. Here are some articles here, here and here.

Why we all need a personal finance management tool?

Whether it is to track one's networth or to budget (or both), we believe that being educated and well-informed with respect to Personal Finance could have a great deal of impact in our lifestyle. As per what we covered in an article previous "A couple of reasons to save", saving provides optionality. The latter, we believe, influences one's lifestyle usually positively, whenever more optionality is available. Saving could be seen as a function of budgeting and inherent feature of budgeting.

A well-designed Personal Finance management tool should enable the user to,

  • have a quick overview of the state of his finances
  • encourage conscious and sub-conscious savings
  • facilitate goal settings, gamifying goals and help to achieve the related milestones

Through behavourial science and gamification, a Personal Finance management tool should be able to help users improve their finances, while literally being a like a finance-nanny to improve chances of success. We believe everyone needs a tool although not everyone is aware of the why. This, we will leave it to financial bloggers to educate the people.