Last week we discussed apps that can help you budget. As we’re now moving away from the “cash age” to the “app age” we’d like to explore the use of digital wallets, what bankruptcy experts have to say about the topic and whether they’ll help you budget or blow the budget.
What is a digital wallet
A digital wallet is the equivalent of the physical wallet you have on your desk or in your pocket or your purse. A digital wallet refers to an electronic device that allows an individual to make electronic commerce transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual’s bank account can also be linked to the digital wallet. There are two types of digital wallets:
- Smartphone app for making financial transactions in a retail store such as the Starbucks app
- Desktop app for making credit card purchases online such as PayPal
Our list of the 4 most popular digital wallets
PayPal: One of the most popular and trusted digital wallets, boasting an impressive 173 million users across 203 countries and 26 currencies
Apple Pay: For iPhone, Apple Watch or iPad – simple to use and works with the cards you already have on the devices you use every day
Android Wallet: Google’s mobile wallet app for Android-powered phones – use it to tap and pay in stores and you can use it to make in-app payments
Samsung Pay: Enables you to tap and pay using your Samsung Galaxy phone (only available for use with newer Samsung Galaxy phones such as the Galaxy S6 Edge and/or the Galaxy Note5) at brick-and-mortar locations
Will a digital wallet help you budget of blow the budget?
The only true way to control your spending is to pay with cash or debit because if the money isn’t there, you can’t make a purchase. Digital wallets can enable credit card purchases more quickly and conveniently than having to take out your credit card.
As bankruptcy experts, what we worry about is does using a digital wallet, combined with the ease of online shopping, encourage overspending? The speed at which you can process a payment certainly gives you less time to think about it. If you’re prone to overspending, a digital wallet will help you overspend even quicker. If you’re diligent about staying within your budget, then a digital wallet will be a convenience.
What to do if you’re overspending and deep in debt? Go see one of your local bankruptcy experts – a licensed insolvency trustee
Apps are not going to help you; there is no replacement for the help of a professional trustee. We have the expertise to help you manage your debt and get you back on track to living a financially healthy life Starting Over, Starting Now. Give the Ira Smith Team a call today and book your free consultation.
If we get to see you early enough, at the first sign of trouble, you can utilize and implement one of the bankruptcy alternatives, to free you from the burden of your company’s financial challenges to go on to be a productive, profitable employer allowing management to focus on business growth and not be plagued by debt problems.
People consider us bankruptcy experts because we wrote the eBook 12 THINGS A LICENSED INSOLVENCY TRUSTEE MAY NOT TELL YOU!. CLICK HERE to get a free copy of the eBook.