The internet is a very useful tool for keeping on top of all things financial. We can check bank balances any time, pay bills quickly without using a stamp, research investments, and more. It can also be a budget buster, if you are not careful.
Online shopping is fast and easy – almost too fast and too easy. Advertisements are everywhere you turn. Sometimes, you visit an online store to buy something that you need, only to be enticed to add an extra item or two or more to your cart in order to get free shipping. Of course, that means that you end up spending more than you would have if you bought only what you needed and paid the shipping. Coupon codes can entice you to shop when you otherwise would not, and the ability to shop from home or even on the go on your smartphone make it all too easy to make impulse purchases.
Scammers are also lurking in many places, just looking for an opportunity to steal your credit and debit card information and in some cases even your identity. Protect yourself by using credit cards rather than debit cards online so that your bank account is not at risk. Even though most banks will investigate fraudulent charges and help you get your money back, it is better to prevent that from happening in the first place.
Online bill paying is convenient, but it often results in automatic payments being set up to come out of your bank account each month. If your income is not steady and you do not have the proper amount in your account when the payments go through, you may be charged overdraft and other fees for the period of time that the account is overdrawn.
Online shopping, banking, and bill paying can be very convenient and can help us to save time and money. However, it is important to use these conveniences wisely because they do have the potential to become a financial pitfall.
Photo by kahle on morguefile.com.