5 reasons why you need a budgeting app
Financial discipline isn’t a habit that comes easy for most people.
If you look at the statistics of those who have enough money for retirement or emergencies, you will see that many of us are struggling to meet our goals.
One way of ensuring that you stay on track is budgeting. Something as simple as planning for your money, even when you don’t make a lot, can make a big difference when it comes to financial health.
The traditional way of doing it is writing everything down and allocating your money to certain priorities.
The other way (that doesn’t often work) is simply using your willpower and general estimations to plan your money.
A new and even better method that can help you improve all that is by embracing apps.
If you’re not sure of the benefits they come with, here are a few that might encourage you to download one:
1. They are more efficient than doing things manually
Tech is great but it does have some weaknesses. There are also some privacy concerns about sharing personal data on these apps so I get it.
However, the benefits outweigh the disadvantages because you can easily find apps that provide confidentiality.
It’s also time-saving because you won’t need to go through the process of wringing down everything all the time, you can keep track of your records and progress easily and you’re less likely to make an error because everything is accurately automated.
2. They give you better financial clarity
It’s often hard to keep up with all our transactions properly. Sometimes you might even assume that you had enough to make certain purchases only to find out that you’re unable to once you assess everything.
With apps, you get the benefit of accessing all this overwhelming information in one place. You will be able to see certain trends and plan better because you have a clearer perspective of your money through the app.
3. They strengthen your accountability muscle
When you budget manually or go by your instincts, it’s harder to be more careful with how you spend. Even if you have your notebook at home with a clear budget it will be harder to resist unnecessary purchases because there is nothing to stop you.
At least if you have your app on your device tracking your moves, you will feel guiltier when you see where your money went at the end of the day. It will always remind you to stick to your budget which naturally helps you become more responsible.
4. They can help you achieve your financial goals
As you keep track of your records for weeks, months and even years through the app, you can gauge how far you have come and where you can improve when it comes to your targets.
The combined benefits you get from using an app will allow you to set goals and have the kind of progress you expect.
5. They help you be more prepared for emergencies
Planning for the unexpected is crucial. Many people don’t have any emergency savings ready when a crisis comes.
To plan more efficiently, the budgeting app will come in handy. You will be able to account for every coin including what you have planned for your emergency fund.