Did you know that almost 40% of Americans have less than $300 in their savings account?
Budgeting has always been important, but it’s even more vital in an age where the economic losses caused by the pandemic have made a large dent in many Americans’ finances.
But by using a budgeting app, you can keep track of your money while learning how to save.
Whether you’re saving up for a down payment or just want to add to your savings accounts, here’s everything you need to know about why you should use a budgeting app.
Have All Your Data in Real-Time
If you have more than one bank account and more than one credit card (which most of us do), you’ll need to log in to a lot of websites to track your spending.
But when you use a budgeting app, you’ll have all the information from all your accounts on one dashboard.
This includes your regular checking and savings accounts as well as your investment accounts and credit card balances.
And when you have your data in real-time, it’s easier to stop yourself from making an impulse buy because you’ll instantly watch that money disappear.
See Where You Spend Money
Before you learn how to budget your spending, you need to see which categories you spend the most money in.
Whether you pay cash or use digital money, you’re likely not tracking each dollar you spend on a spreadsheet as you go about your day.
For example, you might be spending hundreds of dollars on coffee and takeout every month without even knowing it.
But with a budgeting app, you’ll be able to see your spending in each category and see if it’s going above your expected spending.
Set Up Alerts
One of the best ways that a budgeting app can help you when setting a budget is that it lets you create alerts.
You can set up automatic alerts to let you know of any upcoming bills, for instance.
You can also customize how your alerts are set up. You can add alerts for things like automatic credit card payments and keeping an account above a certain amount of money.
Encourage Yourself to Save
Finally, budgeting apps can help encourage you to save because you’ll see yourself meeting your savings goals each month.
You can also set up the app to automatically set aside a certain amount of money each month so you don’t have to worry about overspending.
And once you get into the mindset of saving, you can start to look into other types of savings and wealth building, such as learning how to use bitcoin.
Use a Budgeting App to Take Control of Your Finances
Without a budgeting app, budgeting might look like a mess of spreadsheets and confusing calculations.
But with a budgeting app, you can keep track of your finances in real-time, stop yourself from impulse spending, and reach your financial goals faster.
For more articles like this one, be sure to take a look at more articles in our finance category!