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Money Management Tips: Using E-Wallets

Do you embrace online banking?

An e-wallet is a form of digital payment that’s quickly gaining popularity across the UK. These helpful online wallets are great for organising money, tracking spending habits and protecting your personal information when paying online.

There’s an endless array of personal finance tips online and it often feels like new budgeting tips appear daily. The best way to navigate the options is by researching whether the money management tips align with your personal finance habits.

Keep reading to learn more about e-wallet financial management to see if this tool can help you organise your money.

What Are E-Wallets?

E-wallets, also known as mobile wallets or digital wallets, are virtual tools that allow users to save money, budget and complete online payment transactions.

These wallets are available via smartphone apps or web browsers through a quick application process. Once signed up, users can add debit cards, their bank account or other payment methods to top the wallet up with cash.

Some e-wallets offer cashback rewards, discounts, money managing tools and many allow you to send payments to other users.

Examples of e-wallets include PayPal, Venmo, Google Pay, Apple Pay and Skrill.

How To Use An E-Wallet For Budgeting & Savings

While e-wallets offer an easy way to pay online, many users are adopting the technology to help them budget their spending.

When your e-wallet is set up and linked to your chosen payment method, you can investigate its tracking tools. Most mainstream e-wallets provide expense trackers which categorise your outgoing payments into different groups — e.g., “Utilities”, “Shopping” or “Hospitality”. Monitoring these metrics will give you clear insights into your spending, allowing you to cut back where needed.

E-wallets also offer clear budgeting capabilities. You can input your overall spending budget and your app will show you how much you’ve spent and how much you have left until the end of the month. This way, you can monitor your spending and even set minor budgets for bills, disposable income payments and more.

Advantages & Disadvantages of E-Wallet Financial Management

If you’re considering using an e-wallet, look at the main advantages and disadvantages to gain an overview of the tool. When in doubt, always read individual user reviews of your chosen app to ensure you have the complete picture before signing up.

Advantages

Disadvantages

The Takeaway

Whether you’re new to budgeting or looking for a new way to manage your money, e-wallets provide a simple personal finance experience. Review the terms and conditions before signing up and always research as much as possible before choosing one e-wallet company.

Jump to the Polar Credit money management tips section to learn more about personal finance, budgeting and creating a secure financial future.

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