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How to Use Financial Apps to Stay on Track with Your Budget

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How to Use Financial Apps to Stay on Track with Your Budget

January 6th, 2021

Let’s face it: managing money can be stressful. Keeping track of income, expenses, and savings goals can feel like a full-time job. Fortunately, there's a solution that’s more convenient and often more effective than spreadsheets alone – financial apps. In 2021, there’s a huge variety of apps available, designed to help you take control of your finances. This guide will walk you through how to use them effectively.

Why Use a Financial App?

  • Convenience: Access your financial information anytime, anywhere, on your smartphone or tablet.
  • Automation: Many apps automatically track your spending by linking to your bank accounts and credit cards.
  • Visualization: Apps often provide charts and graphs that make it easier to see where your money is going.
  • Goal Setting: Many apps allow you to set and track progress toward specific financial goals, like saving for a down payment or paying off debt.
  • Reminders & Alerts: Get notified when bills are due or when you’re overspending in a particular category.

Top Financial Apps to Consider:

Here are a few popular apps categorized by their strengths:

  • Mint: (Free) - Mint is a comprehensive budgeting app that automatically tracks your spending, creates budgets, and offers credit score monitoring. It connects to a vast network of financial institutions. Great for beginners.
    • Key Features: Automatic transaction tracking, budgeting tools, bill reminders, credit score monitoring.
  • YNAB (You Need A Budget): (Subscription) – YNAB uses a “zero-based budgeting” approach, forcing you to allocate every dollar. This method can be highly effective for gaining control of your finances.
    • Key Features: Zero-based budgeting, goal setting, reporting, educational resources.
  • PocketGuard: (Free/Premium) – PocketGuard focuses on simplifying your budget by showing you how much “in your pocket” you have after bills and savings are accounted for.
    • Key Features: Automatic expense tracking, bill tracking, savings goals.
  • EveryDollar: (Free/Subscription) - Created by Dave Ramsey, EveryDollar is a budgeting app built around his financial principles. It's a good choice if you are following Ramsey’s debt snowball method.
    • Key Features: Zero-based budgeting, goal setting, debt tracking, integrates with Ramsey+ subscriptions.

Tips for Using Financial Apps Effectively:

  1. Connect Your Accounts: Linking your bank accounts and credit cards is crucial for automatic tracking. Be sure to choose reputable apps and understand their security measures.
  2. Categorize Your Transactions: Most apps automatically categorize transactions, but you may need to adjust them occasionally for accuracy.
  3. Set Realistic Budgets: Don't create a budget that’s too restrictive. Start with small, achievable goals.
  4. Track Regularly: Make it a habit to check your app at least once a week to monitor your progress.
  5. Review Your Goals: Regularly assess your financial goals and adjust your budget accordingly.
  6. Don’t Rely Solely on the App: The app is a tool, not a magic solution. Combine it with mindful spending habits.

Resources:

Do you have a favorite financial app?