The introduction of many mobile apps has made it easier for people to spend money on different things like game purchases, online shopping, and food delivery. However, your smartphone can also help you make smarter financial decisions. Read on to learn how you can use mobile apps to manage your finances better.
1. Setting Up a Budget
Statistics indicate that approximately 50% of Americans neither budget nor have adequate knowledge about their finances. Mobile apps can be beneficial in such a situation. They provide real-time data to help you understand how you are spending your money and the changes you need to make to manage it better.
For example, mobile banking specifically allows you to set a monthly budget. This process makes it easier to track your daily spending habits and transactions. Moreover, you are more likely to develop a better saving behavior when comparing actual spending with your budget.
Besides budgeting, mobile apps allow you to save more money and invest it wisely. Some apps have a feature that automatically transfers money to different investments like exchange-traded funds (ETFs).
3. Paying Loans on Time
Loans are good because they enable you to make significant financial changes even if you do not have enough cash at hand. However, paying back the money on time might not be as easy as it sounds.
This is where mobile apps come in. They can also help you save money daily or weekly and pay more money monthly to clear your debt faster. Most apps provide different saving methods, depending on the user’s current financial position.
For instance, some deduct a particular amount from the individual’s paycheck while others make weekly recurring transfers to the debt account. The primary goal is to ensure that you make extra payments that will clear your debt faster.
4. Organizing Your Money
Today, many people own several bank accounts and credit cards. Sometimes, managing them physically is not easy. This is where mobile apps come in. They enable you to track your accounts and credit card and online transactions with one device. Having your financial information on one platform makes it easier to determine how you spend your money and how you can cut down your expenses to save more.
5. Eliminate Recurring Expenses
Mobile apps track your spending and collect balance data. This information helps you to identify and prevent recurring expenses, such as subscriptions that you might have forgotten to cancel.
6. Evaluate Your Financial Progress
Mobile apps help track your expenses, savings, and investments and give you an idea of your financial performance. Additionally, some apps provide analytical tools like charts to help you visualize different aspects of your finances. This process assists you to achieve your financial goals.
In summary, mobile apps enable you to manage your money better and improve your financial position. This technology allows you to repay loans on time, invest, budget, and cut down recurring expenses.