There’s no doubt that the latest technology, especially when it comes to mobile connections, has drastically improved our abilities to control our financial situations, but, for better or worse, there are some limits to what we can do. Digital money and processing don’t really save us money, or create money, per se, they just allow more efficient use of our time.
So some of the hard limits that we have to pay attention to include caps to credit card interest rate benefits, the limits to hardware compatibility for some services, the uncertainty of digital money like Bitcoin, the dangers of moving finances with a result like the housing crisis, and knowledge that the Fed controls some serious aspects of our financial future on a broad scale.
Credit Card Interest Rates
There are some rules about how many 0% interest rate credit cards we can have as individuals. You don’t always get to apply for them, get them, keep them, and then move balances and purchases to another card later. You can work the system to a certain degree, especially if you plan on one fell swoop of a debt reduction, but expanding that concept over time can end up looking a little fishy.
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Hardware Compatibility For Purchases
Technology has allowed vendors to accept credit cards through their phones. This is a phenomenal benefit to many small business owners. However, there are some limits to this. Your phone has to have connectivity to the net, first of all, and, with future iterations of phones and mobile devices, the connections to the hardware devices themselves may have to change. When the iPhone got rid of the mini-socket, this is a good example of that type of occurrence.
There’s a trend in the tech-savvy universe to try to create a digital money system outside the bounds of typical hard cash. Enter the idea of Bitcoin. However, the limits to the Bitcoin system are that it isn’t necessarily accepted on a worldwide level outside the group of internet enthusiasts that use it regularly for online purchases.
Don’t Forget the Housing Crisis
Messing with money using modern technology can create huge issues as well. Shady people decided to work the system using analytics and false trends, and the blowback was the housing crisis of about a decade ago. You can’t pretend that numbers are reality, when you make up the numbers in the first place! That’s one of the dangers of working around the fringes of modern financial capability.
Is the Fed Your Friend?
You may think you have control of your personal finances, but a very powerful group of people have a grip on worldwide interests, so it’s important that you understand how the Fed works, and if they’re friendly to your financial pursuits or not. Knowing how they fit into your saving and buying patterns is essential when working the system these days.