If you don’t know how to stick to your monthly budget, staying financially sound and building wealth will be next to impossible. Healthy money management revolves around the budget, and in addition to having basic budgeting skills, it’s important to know about the modern personal finance tools available.
These days, there are many apps that allow you to track your expenses, strategize your savings, and much more. Take a look at the following practical information and advice for helping you choose the best personal finance app for your needs!
Why Do I Need a Budgeting App?
The first thing you need to do is know where you stand in terms of debt versus income, calculated as precisely as possible. After all, you can’t plan a budget if you don’t know what you’re working with. However, planning a budget is one thing; living it out is an entirely different endeavor. But setting financial goals is incredibly important. You will likely make mistakes and have setbacks, but don’t let those derail your goals or your budget. Instead, learn from these moments and adjust.
Budgeting apps are designed to help people stick to their budget in everyday life. They can help you identify where each dollar goes, reveal your spending habits, and help you identify where there is room for improvement.
While some apps are better for specific tasks than others, the real issue is how you use the app. As with using a spreadsheet or the pen-and-paper method, you must commit to incorporating your budgeting app with each financial decision. Many people are motivated to live out their budget when using budgeting apps because of the automation and interactivity.
A quality budgeting app will also allow you to track several bank accounts on a single platform. If you have not created separate accounts for your business and personal expenses, now is the time to do so, especially if you are operating as an LLC or corporation. Mixing funds can take away your liability protection, leaving you liable for business lawsuits and debts.
How Do I Choose an App for My Needs?
Now that you know some of the perks of using a personal finance app, let’s talk about some of the most important characteristics to look for when choosing the right app for your situation:
Security
These days, it’s critical to keep your personal information secure. And when you are dealing with banking data and logins, it’s even more important. Most personal finance apps on the market provide a certain level of security, but not all are created equal.
Research the security encryption of any app you are considering. You will want to look for features like multi-factor authentication and 256-bit encryption and only access your app on secure Wi-Fi networks.
Features
Features and benefits vary across the many different apps on the market. Along with researching apps, be sure to try a few different ones to figure out which will suit your needs. If you’ve ever used a mobile banking app to check your balance, you are already off to a good start. A good budgeting app will allow you to:
- Receive reminders of upcoming bill payments.
- Track your credit score.
- Track your spending.
- Create measurable financial goals.
- Manage multiple financial accounts.
If you are looking for an investment app (e.g., Stockpile, Betterment, Wealthfront, etc.), you will want to make sure it provides the features necessary to keep your finances organized and invested in the right places.
Costs
You will notice that there are plenty of free budgeting apps and those that offer free versions. And there are apps that come with a monthly fee. There’s no harm in testing a free app, but don’t hesitate to try out paid apps as well; after all, apps that help you make financial strides can prove well worth the investment.
Customer Service
Any app you choose should have a stellar customer service team. That way, you can easily reach out to a technical team should you experience any issues with the budgeting app. Research the customer service options and read customer reviews of each app.
Budgeting apps are an excellent tool for improving your financial outlook and staying informed about your credit score. Consider the tips and information above as you research the web to find the perfect app for your needs. And remember that any app you choose will only help if you commit to your budget!
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