If you’re struggling to get your finances in order, the answer to your worries could be in your pocket. Today we will share some tips to help you explore the benefits of finance apps, as well as how to pick the best one for you.
Understanding the Types of Financial Apps
The best financial wellness apps are designed to cater to specific needs, keeping on the path of economic stability. Note the advantages of the following categories:
- Budgeting apps: These programs guide you through setting monetary goals. Notifications remind you of crucial saving and spending benchmarks. For example, a biweekly saving goal can put you on track to finally fill your emergency fund.
- Purchase tracking apps: If you need more hands-on attention, apps that track your spending compile trends to display your habits and provide ideas on how to rein in unwise financial decisions. Such apps might be tied to your bank account and automatically categorize expenses, or the software may accrue information with photographs of your receipts.
- Investing apps: If you’re relatively savvy with your working capital and want to use it to generate more income, these apps offer unique ways to invest your money, such as opportunities for modest cash deposits into international investing.
How a Personal Finance App Can be Beneficial
Protecting Your Information
Identity theft and data breaches are prevalent, so research the reputability of various apps and their providers. App store reviews alert you to the application’s reliability, functionality, and data security. A web search for news about the app and its creator can clue you in to security concerns.
Verify the age of the app and confirm a good record of quality service. Find out what alerts and safeguards are in place if your mobile device falls into nefarious hands and secure your information with options like fingerprint scanning and multi-factor authentication.
Finding a Pleasing Interface
Accuracy and security do little to help you if the app is too challenging to use. Since you’ll interact with the software daily, find something easy to understand, navigate, and adapt. If numbers bore you, search for an app that gamifies saving and investing. Studies demonstrate that gamifying good habits work with psychological reward systems and leads to longer-term success for goals.
Don’t waste hours trying to comprehend a confusing layout. Online video reviews and tutorials show you how an app works before you download and test it. Check the tutorial upload date to ensure you see an example of the current software.
Taking Advantage of the Right Tools
Thanks to the internet, there’s no shortage of resources to help you get your finances on track. This one can help you plan for future purchases, like buying a house, by figuring in your current income, debts, and the amount you can afford in terms of a down payment. It’s a great way to take a lot of the stress and guesswork out of fulfilling your dream of being a homeowner!
While some apps are free, though, other programs come with a cost, such as a one-time upfront fee. Other apps require a subscription, especially if they include investment consultation, extra security features, advanced tracking, or monitoring of multiple accounts. The service may pay for itself by saving you hundreds or thousands of dollars.
Monitoring Business Finances
If you have a side hustle or full-fledged business, you need an app that can simplify your bookkeeping and eliminate headaches at tax time. Search for software that tracks multiple bank accounts. A separate business account aids in tracking expenses and write-offs, which is essential if your company is incorporated or an LLC.
Remember, as the saying goes in the business world, mixing funds “pierces the corporate veil.” In other words, if you mix personal funds with business assets, your personal assets (like your home, vehicle, and other valuables) are vulnerable to seizure to cover company lawsuits and debts. That’s why a little preparation now could make a massive difference down the road, and is definitely worth your time.
Managing finances is never easy, but there are plenty of finance apps and programs that can help you simplify and organize your resources so that you can resolve any difficulties. Ultimately, the goal is to put your money to work for you. So identify your needs and pick the best app for your situation.