When budget apps were first introduced by Quicken, it took a while before everyone realized how advantageous they were. Budget apps let you track your spending and expenses so you can make changes in your life.
This is because when you have control over your money, you can manage to save some amount for your future goals.
Connecting budgeting apps with your bank accounts along with debit and credit cards helps to download automatic transaction statements.
This will help you to categorize all your spending and manage your budget at the same time.
Here are a beginner’s guide budget app that will have you saving money in no time.
Why Do You Need a Budget App if You’re Inexperienced with Money
Budget apps give you control, freedom, and peace of mind. You don’t have to worry as much about your finances because you’re aware, in touch with your money, and organized enough to keep your financial information together.
That’s because these apps streamline everything into one program so you can see everything in front of you.
When you’re inexperienced with money, keeping track of your spending isn’t always easy.
Frequently purchasing inexpensive items can cost hundreds of dollars, while saving varying amounts every month may put you behind in your savings goals.
Using budget apps means you’re less likely to make costly mistakes that drain you of extra dollars.
Here are three reasons why you need them starting out.
Budget Apps Let You Track Multiple Sources of Income
Maybe you’re freelancing and you’re getting paid through digital payments. Or, you have a relative or friend helping you.
In addition to tracking your spending, some budget apps will let you see multiple income streams. You’ll be able to come up with totals to determine how much you owe others when you were paid, and how much.
You don’t have dozens of pages, spreadsheets, and charts to worry about. Slide or tap your finger on a smartphone and you’ll have all the data you need.
Budget Apps Stop You from Reckless Spending
Whether you’ve opened a new checking account or landed a job after years of unemployment, having cash in your bank account is exciting.
But spending compulsively, making huge purchases, or over-drafting your account too many times can lead to trouble.
Budgeting apps help you see your spending using charts with contrasting colors, percentages, statistics, and notifications to keep you on track.
Another problem with compulsive spending is that you’re losing the money you need for emergencies. Research says that just 39% of Americans have enough money to afford emergency expenses.
So, the money you’re wasting on unnecessary purchases today could be used to pay for a month of rent you couldn’t otherwise afford, or a dental emergency you didn’t see coming.
Not only that, by seeing your spending, you can also identify patterns in your saving and spending. That way, you’ll be able to get on top of emergencies right away.
Budget Apps Help Promote Financial Literacy
Financial literacy refers to your ability to understand financial information. Anyone inexperienced with handling large amounts of money would be at a disadvantage without a budget app.
The Financial Industry Regulation Authority learned from their recent National Financial Capability Study that only 34% of tested individuals were able to answer a basic five-question financial literacy quiz.
That means a lot of people are financially illiterate.
Fortunately, budget apps contain links, references, answers to questions, and solutions to financial problems all within the app. If you’re confused, you can use the app to figure out what something means.
Not being able to track your spending means you have to rifle through paperwork to identify what money is coming from what income sources.
And if you’re an inexperienced spender, you need a way to gain some financial literacy to avoid making money.
Going forward, know that downloading a budget app is probably the best way to stay on top of your money.
Saving Money for Future Goals
Most of the budgeting apps come with a feature that helps you to save money.
Using this feature, you can set up “savings buckets” to put some money yourself or opt for an auto-debit option to get a specific amount of money to get deducted every month and get saved into your bucket.
What’s Good about These Budgeting Apps?
The main purpose of these budgeting apps is to offer you convenience and simplicity at the same time to ensure that you have control over your money.
Some of the good things about budgeting apps are:
- Convenience – Instead of handling a diary or spreadsheet, using an app on your phone or tablet sounds more convenient and simple.
- Easy to Use – The apps are easy to use. You just need to set up once by putting details that include your income and spending and the app will do the rest for you.
- Comprehensive View – Using a budgeting app can help you get all your financial details in a single app. You don’t need to check your loan details or your credit card statement using two different apps.
Budgeting apps are now a trending money managing option.
However, if you really wish to save some money, you need to be committed to the app to manage all your transactions.