How to Use Financial Apps to Save Time and Money

Let's be honest, managing your finances can feel overwhelming. Juggling bills, tracking expenses, and trying to stick to a budget can be a serious time suck. But what if there was a way to make it easier, faster, and even more effective? The answer is financial apps.

In 2020, the market is flooded with apps designed to help you take control of your money. From simple budgeting tools to sophisticated investment platforms, there's an app for every need and skill level. This guide will break down how to use these apps to save both time and money.

1. Understanding Your Financial Needs

Before diving into apps, take a moment to assess your financial situation. Ask yourself:

What are my financial goals? (e.g., saving for a down payment, paying off debt, building an emergency fund)
What areas of my finances do I struggle with? (e.g., tracking spending, sticking to a budget, avoiding impulse purchases)
What's my comfort level with technology? (Are you comfortable with investing, or do you just need help with basic budgeting?)

2. Popular Financial Apps & Their Uses

Here’s a look at some popular apps and how they can benefit you:

Mint (Free): Mint is a comprehensive budgeting app that connects to your bank accounts and credit cards. It automatically categorizes your spending, tracks your net worth, and provides personalized insights. Time Saved: Automatic transaction tracking eliminates manual data entry. Money Saved: Alerts for overspending and insights to identify areas for savings.
YNAB (You Need A Budget) (Subscription): YNAB is a budgeting app that emphasizes giving every dollar a job. It uses a “zero-based budgeting” system, forcing you to allocate every dollar. Time Saved: Forces you to be proactive about your money. Money Saved: Reduces overspending by focusing on conscious spending.
PocketGuard (Free & Paid): PocketGuard focuses on “in my pocket” money – the money you have left after bills and goals. It simplifies budgeting by showing you how much you can safely spend. Time Saved: Quick view of available spending money. Money Saved: Helps avoid overspending by limiting spending based on available funds.
Acorns (Subscription): Acorns is a micro-investing app that rounds up your purchases and invests the spare change. It’s a great way to start investing with small amounts of money. Time Saved: Automatic investing. Money Saved: Potential for long-term returns (though subject to market fluctuations).
Digit (Subscription): Digit learns your spending habits and automatically transfers small amounts of money from your checking account to a savings account. Time Saved: Automates savings. Money Saved: Consistent saving, even if you don't feel like it.

3. Tips for Maximizing App Use

Connect All Your Accounts: Connecting all your accounts to an app provides a holistic view of your finances.
Set Up Alerts: Take advantage of alerts for low balances, overspending, and upcoming bills.
Regularly Review Your Data: Don't just let the app run in the background. Regularly review your data to identify trends and areas for improvement.
Customize Categories: Most apps allow you to customize spending categories to better reflect your lifestyle.
Start Small: If you're new to budgeting apps, start with one and gradually add more as you become comfortable.

4. The Future of Financial Apps

Financial apps are constantly evolving with new features and integrations. Expect to see even more automation, personalization, and sophisticated investment tools in the years to come.

Resources:

Do you have a favorite financial app?