When Quicken first introduced budget apps, it took a while for everyone to realise how good they were. Budget apps allow you to track your spending and expenses so you can make changes in your life.
This is because by controlling your money, you can save some amount for your future goals.
Connecting budget apps to bank accounts, as well as debit and credit cards, helps download automatic transaction reports.
This will help you categorise all your expenses and manage your budget at the same time.
Here’s a budget app for beginners that will save you money in no time.
Why do you need a budget app if you have no experience with money?
Budget apps gives you control, freedom and also peace of mind. You don’t have to worry so much about your finances because you are aware of your money and organised enough to keep your financial information together.
This is because these apps combine everything into one program so that you can see everything in front of you.
If you’re new to money, it’s not always easy to track your spending.
Buying cheap items often can cost you hundreds of dollars, while saving different amounts each month can put you behind your savings goals.
Using budget apps means you’re less likely to make costly mistakes that cost you extra dollars.
Here are three reasons why you need them to get started.
Budget apps allow you to track multiple sources of income
Maybe you’re a freelancer and get paid through digital payments. Or a relative or friend helps you.
In addition to keeping track of your spending, some budgeting apps will let you see multiple streams of income. You will be able to come up with totals to determine how much and how much you owe others when you were paid.
You don’t have to worry about dozens of pages, spreadsheets and charts. Swipe or tap your smartphone and you’ll have all the data you need.
Budget apps keep you from reckless spending
Whether you’ve opened a new checking account or landed a job after years of unemployment, keeping cash in your bank account is exciting.
But spending compulsively, making huge purchases, or building an over-sized account too many times can cause problems.
Budgeting apps help you see your expenses with charts with contrasting colors, percentages, statistics and notifications so you can stay on track.
Another problem with compulsive spending is that you lose money you need for emergencies. Research shows that only 39% of Americans have enough money to afford emergency expenses.
So the money you spend on unnecessary purchases today could be used to pay for a month’s rent you couldn’t otherwise afford, or that dental emergency you missed.
Not only that, seeing your spending can also help you identify your saving and spending patterns. This way, you will be able to deal with emergency situations immediately.
Budget apps help promote financial literacy
Financial literacy refers to your ability to understand financial information. Anyone without experience handling large sums of money would be at a disadvantage without a budget app.
The financial industry regulator learned from its recent National Financial Capability Survey that only 34% of those tested were able to answer a basic five-question financial literacy quiz.
This means that many people are financially illiterate.
Fortunately, budgeting apps include links, references, answers to questions, and solutions to financial problems. If you’re confused, you can use the app to find out what something means.
If you can’t track your spending, you need to keep records to determine what money comes from which sources of income.
And if you’re a savvy spender, you need a way to become financially literate to avoid making money.
Going forward, know that downloading a budget app is probably the best way to save money.
Saving money for future goals
Most budget apps have a feature that helps you save money.
With this feature, you can set up “savings buckets” to contribute money yourself, or choose the auto-debit option to receive a set amount of money each month that will be deducted and saved in your bucket.
What’s good about these budgeting apps?
The main purpose of these budget apps is to offer you convenience and simplicity at the same time to ensure that you can control 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 easier.
- Ease of Use – Apps are easy to use. Setup is a one-time process by entering information that includes your income and expenses, and the app does the rest for you.
- Comprehensive View – Using a budgeting app can help you get all your financial information in one app. You don’t need to check your loan information or credit card statement using two different apps.
Final words
Budget apps are now a popular money management option.
However, if you really want to save money, you need to commit to an app to manage all your transactions.
