Skip to main content
 
Guides

How To Use Budgeting Apps: Best Free Apps in 2022

By June 23, 2022No Comments
Free Budgeting Applications Tools

How to Make the Most of Budgeting Apps

How To Use Budgeting Apps, it’s critical to keep track of your money and how you spend it. Everyone should have a budget, leaving you with nothing to save or struggle to pay your payments at the end of the month. Budgeting apps are popular for consumers to create a budget and keep track of spending. There are plenty of financial applications available to help you track your spending, monitor your recurrent costs, and manage your finances.

Budgeting applications may help you keep track of your finances on the road, allowing you to see what you’re making, spending, and what you might need to alter.

They’re usually made for general personal budgeting, and each has a set of fundamental and maybe unique features to help you remain on track.

Some budgeting applications may also help you keep track of your credit card balances and money in banks and brokerages.

What Are Budgeting Apps and How Do They Work?

Budgeting applications for your smartphone or tablet may help you keep track of your expenditures daily.

An app may help you keep track of your money in one location and on the road. This should help you better understand how much money you make, how much money you spend, what you spend it on, and where you may need to make adjustments.

You may also download loan applications to make it simpler to satisfy your payback obligations if you have an ongoing loan.

What Are the Benefits of Using a Budgeting App?

Budgeting applications are designed to assist you in keeping your money in order at all times. They are often downloaded by users who have already run into financial difficulties and are attempting to resolve them.

So, how can they help you out?

  • Overspending – If you’re like most people, you spend more than you need. This is not an issue if you live within your means. If this puts your financial stability at risk, you should make changes. Budgeting applications may show you where you can save money and make you more conscious of overspending.
  • Many budgeting applications, such as Honeydue enable you to set up direct transfers from your current account to a savings account. This turns saving into an automatic procedure, reducing the need for you to remember to keep regularly.
  • Create New Patterns — In the long run, after you’ve modified your spending routines based on what the app has revealed about your habits, it will become ingrained in your day-to-day spending. This implies that budgeting applications may be more than just short-term aid; they can also be long-term aid.

Which Apps Am I Able to Download?

When it comes to selecting the best budgeting software for you, you have a lot of alternatives. Because of many of these free programs, it’s worth downloading a couple to try out and see which one best meets your needs.

Apps that are available for free

  • Mint is a popular option among customers since it is simple to use and serves several functions. Mint lets you create a budget, monitor subscription spending, manage numerous credit cards, and even help you pay monthly payments by setting customizable reminders and notifications. Mint, available for Android and iOS, is worth a try!
  • Honeydue – Honeydue is a one-of-a-kind app that enables couples to jointly interact and manage their money. You may separate financial and personal chats using the built-in chat feature. You might also create a joint Honeydue bank account, which is fee-free and includes a complimentary debit card.
  • PocketGuard – PocketGuard is, without a doubt, the most excellent app for easily monitoring expenditure. This caters to a wide range of demands, including a free version and sophisticated ones that may be purchased for a fee. It displays how much money you have, how much your payments cost, and how much you have left over after you’ve paid your expenses. This may be shown in a customized pie chart, making saving more appealing! You may connect your bills to help you get the best prices. PocketGuard is a beautiful place to start if you attempt to modify your financial habits since it enables you to save automatically.

Apps with a Price

Your best option is to start with a free app to get a feel for it before deciding whether or not to pay for a subscription.

YouNeedABudget offers a free trial before requesting payment if you want to take the paid path when picking an app. YNAB is an excellent alternative because of their team’s help and the 34-day trial period.

Stash is a premium yet very inexpensive software that costs $1, $3, or $9 each month, depending on the bundle you choose. You may get a debit card from Stash that enables you to earn stocks when you use it. Stash is a beautiful alternative since it has no overdraft fees or minimum balance requirements.

Why Should You Use a Budgeting App?

If you’re unsure whether budgeting software is good for you, there are several reasons to try it.

1. In one place, you can get real-time information.

People nowadays have a plethora of bank accounts. You could have a local bank checking account, a CIT Bank online savings account for an emergency fund, a Robinhood brokerage account, and a handful of 401(k)s or other retirement accounts from prior companies.

You may have a half-dozen, a dozen, or even more accounts to keep track of in total. If you didn’t have a budgeting app, you’d have to log in to three or four separate websites to see all of your accounts.

Budgeting applications gather data from your various accounts and display it on a single dashboard. With just one click, you can launch the app and see real-time balances for your bank, investment, and credit card accounts.

This makes it much simpler to understand your financial situation and determine if you can afford a particular item.

2. Alerts that are sent automatically

Budgeting applications may assist you in keeping track of your money, but only if you remember to use them regularly. Automatic notifications, which notify you of critical occurrences even if you don’t access the app, are another feature of most budgeting applications.

For example, if a significant, odd transaction happens in one of your accounts, an app may notify you, allowing you to investigate for fraud. Apps may also alert you to upcoming bill due dates, allowing you to prevent missing or late payments, which can negatively impact your credit score. They may also alert you if your checking account goes below a certain level, putting you at risk of incurring pricey overdraft fees.

Most applications adjust the notifications they send out, allowing you to personalize your experience. You may not need to be notified of every future due date if you have automated payments for your credit cards. You may set up alerts to tell you if your checking account balance goes below a specific amount if you wish to maintain it above that level.

Customizable alerts allow you to be alerted of events that are important to you, making these applications helpful even if you don’t check them every day.

3. Budgeting Made Simple

Creating and sticking to a budget is one of the most challenging aspects of money management. You must log every purchase you make, writing down how much you spent and what you spent it on, in addition to the discipline necessary to remain under your budget.

Personal finance applications do half the work for you by automatically recording and categorizing your transactions. When you set up the app, you may input your estimated expenditure on several categories, such as food, rent, petrol, and entertainment.

When you purchase with one of your connected accounts, the app records the transaction and categorizes it. You may look at your budget at any moment to see how much you’ve spent and how much money you have left in your monthly budget.

All you have to do now is remain disciplined and keep to the spending limitations you established for yourself, thanks to the app monitoring and classifying your expenditure.

4. Keep track of your progress.

Many budgeting programs will monitor your money over time, allowing you to track your general financial status and progress toward particular objectives.

Most applications allow you to create savings objectives. You may put aside $500 for a weekend getaway. In the app, you may set a goal, choose a saving account, and keep track of progress. The app will monitor your progress toward your goal to see how close you are to your vacation.

You may also use the applications to keep tabs on your financial situation. Many applications monitor your net worth over time, allowing you to see how your finances have evolved in the months or years you began using the app.

5. Avoid Making Mistakes

Nobody enjoys making mistakes, but financial errors may be costly. An overdraft in your checking account may transform a $5 transaction into a $40 cost after the overdraft charge is included in. A missed credit card payment may result in immediate financial anguish in the form of interest and late penalties, as well as long-term financial harm in the shape of a lower credit score and higher lending rates.

You’ll be more mindful of your money by utilizing a budgeting tool and setting up effective notifications. This may help you track due payment dates and your checking account balance more efficiently, resulting in fewer errors. Given the high stakes of money management, it’s a brilliant idea to use an app to assist you in preventing blunders.

What is the Best Budgeting Software

Choosing the best budgeting software might be challenging since so many options are available.

You may use Mint, one of the most popular budgeting programs, for free. Intuit, the firm behind TurboTax and other popular financial programs, is the provider of this product.

Mint’s integration with Intuit’s other applications is one of its advantages. Using TurboTax, you may connect your Mint account and have TurboTax automatically check your bank and brokerage accounts for tax forms, saving you the time and effort of manually entering part of your tax information.

To help you manage your budget and other elements of your financial life, there are multiple alternatives to Mint, ranging from helping you save money to keeping track of your investment accounts.

Most of Mint’s revenue comes from advertising relevant financial services to its consumers, which are free to use. It’s possible to acquire suggestions for credit cards or loans that could be suitable for your financial condition from Mint.

Mint’s main issue is that it’s only a location to look at your finances. In addition to keeping track of your spending and setting objectives, you can use Mint to manage your accounts and transfer money between them.

Even the help provided by Mint’s customer service staff might be better. Mint’s connections with certain financial institutions, particularly smaller banks, break and must be reestablished occasionally. This process might take several days or even weeks.

1. A budget is required.

You Need a Budget (YNAB) is a budgeting tool that employs four guidelines to help users obtain and stay on track with their spending.

The four YNAB regulations are as follows:

  • Put an end to living paycheck to paycheck.
  • Every money should be put to work.
  • Get ready for a wet day.
  • Take the blows as they come.

YNAB, like Mint, allows you to connect your bank accounts to the website so that it can monitor your spending against your set budget. You may also use the app to set savings goals and track your progress toward achieving them. You may utilize YNAB’s reporting features to see charts and graphs that show how your finances have changed over time.

One disadvantage of YNAB is that it is not free. There are two options: a monthly payment of $11.99 or an annual fee of $84.

2. Money Clarity

Marcus of Goldman Sachs manages Clarity Money, a budgeting tool. It may help you keep track of your several bank accounts and monitor how much money you’re spending on various expenditure categories, much like other applications.

Clarity Money has a unique function: it may negotiate with firms that send you invoices to save you money. Most individuals pay monthly for services such as a cellphone or home Internet. You can sometimes persuade your provider to lower your cost by phoning to negotiate, but it takes a lot of time and effort, and few individuals try to do so.

Clarity will contact these firms on your behalf to get a better deal. If Clarity is successful in persuading firms to charge you less, it keeps one-third of the savings as a commission, meaning you save money without having to do anything. Clarity can also cancel services for you at the touch of a button, making it simple to get rid of subscriptions you don’t need.

Another advantage is that you may use the Clarity app to make transfers across accounts. That means you won’t have to go back and forth between Clarity and your bank’s app if you need to transfer funds.

3. Personal Capital is a term that refers to the

Personal Capital allows you to consolidate your financial accounts into one dashboard, allowing you to keep track of your finances. It isn’t, however, a standard budgeting tool that focuses on making tracking your expenditure simple. On the other hand, Personal Capital focuses more on investment management, providing you with a method to evaluate your investment portfolio and compare its performance to other benchmarks.

You may sign up for Personal Capital’s investment management service if you have enough assets. If you do, Personal Capital’s portfolio managers will manage your investments for you, depending on your risk tolerance and investment objectives.

Personal Capital may suit the bill if you’re seeking a hands-off approach to investing with expert managers’ guidance while providing some crucial extras in the form of an app that allows you to monitor your day-to-day finances and your portfolio.

Is There a Non-Technical Alternative?

Personal finance and budgeting apps are a terrific way to keep track of your money, but they work best if you’re tech-savvy and use your debit or credit card for most of your transactions. Manually inputting purchases into the app might become laborious for users who spend cash daily.

You may utilize the tried-and-true envelope technique to budget if you prefer a low-tech approach.

Obtain several envelopes and mark them with various expenditure categories, such as groceries, petrol, entertainment, restaurant meals, etc. Put money in each envelope at the start of each month equal to the amount you’ve allocated for that expenditure category.

Whenever you purchase throughout the month, remove money from the appropriate envelope. By looking at an envelope, you may check how much money you have left to spend on that sort of purchase for the remainder of the month. When an envelope is empty, you’ve used all your monthly budget and will have to wait until the next month to refill it.

This low-tech approach is simple to use and delivers real-time feedback as budgeting software does, but in a way that an app can’t.

Final Thoughts

It’s tough to keep track of your money, but it’s necessary if you want to get control of your finances. Budgeting software may make it much simpler to keep track of everything by allowing you to examine all your accounts in one location.

You should explore automating other elements of your financial life, such as putting funds into a savings account or investing, after you’ve set up your budgeting program to automate your budgeting. Saving money is simple with automation since you don’t have to worry about it.

Luke Pitt