What Are Tips for Managing Financial Health With Mobile Apps?
Managing your financial health has never been easier with the help of mobile apps, but navigating the vast array of options can be overwhelming. How do you choose the right app and make the most of its features to stay on top of your finances? Financial advisers and senior analysts have shared their top tips to help you maximize your financial well-being. From selecting a comprehensive budgeting app to safeguarding your login information, these six expert tips will guide you toward smarter financial management through mobile technology.
- Choose a Comprehensive Budgeting App
- Leverage Budgeting Tools to Track Expenses
- Set Up Security Notifications
- Create a Reverse Budget
- Give Yourself Grace With Apps
- Be Cautious With Login Information
Choose a Comprehensive Budgeting App
As a fiduciary investment adviser with 30 years of experience, here are my top tips for managing financial health with mobile apps:
- Choose a comprehensive budgeting app that syncs with your bank accounts and credit cards to automatically track income and expenses. This provides a clear view of your spending habits and helps identify areas for improvement.
Recommended apps:
- Copilot Money
- Monarch Money
- PocketGuard
- Rocket Money
- Tiller
- YNAB (formerly You Need a Budget)
- Use goal-setting features in financial apps to establish specific saving, debt-reduction, or investment targets. Monitor progress regularly and adjust strategies as needed.
- Benefit from automated-savings tools that systematically transfer funds to dedicated accounts. These features help build emergency funds or save for goals without constant attention.
- Use investment apps to start wealth-building, even with small amounts. Look for apps offering low-cost exchange-traded funds for a diversified portfolio based on your risk tolerance and financial goals.
- Regularly check your credit score and report using free credit-monitoring apps. This aids in spotting errors, detecting identity theft early, and understanding creditworthiness factors.
- Set up push notifications for crucial financial events like bill due dates, significant purchases, or unusual account activity. Real-time alerts can prevent late fees, quickly identify fraud, and keep you informed about your financial status.
Jeffrey Barnett, Financial Adviser, Fintegrity
Leverage Budgeting Tools to Track Expenses
One crucial tip for managing financial health using mobile apps is to leverage budgeting tools to track expenses and savings. Apps like Mint, YNAB (You Need a Budget), and PocketGuard are particularly popular and effective. By categorizing expenses, these apps provide a clear picture of financial habits, which is essential for setting realistic budgets and achieving financial goals.
Budgeting apps also offer features like alerts for bill payments and low balances, ensuring users stay on top of their finances. Many of these apps can link directly to bank accounts, making it easy to track transactions in real-time. Additionally, they provide insights and tips tailored to individual spending behavior, helping users make informed decisions.
Moreover, these apps often come with goal-setting features. Users can set financial goals such as saving for a vacation, paying off debt, or building an emergency fund. The app then helps track progress toward these goals, providing motivation and a clear roadmap to achieve them.
Another valuable feature is the ability to generate detailed reports. These reports can show trends over time, highlighting areas where one might be overspending and where they can cut back. This level of insight is invaluable for making long-term financial plans and adjustments.
Security is also a significant benefit. Reputable budgeting apps use advanced encryption to protect financial data, giving users peace of mind while managing their finances digitally. They also offer multi-factor authentication to add an extra layer of security.
Furthermore, many budgeting apps offer educational resources. These can include articles, videos, and tips on managing money better. By continuously learning, users can improve their financial literacy and make more informed decisions.
In summary, using a budgeting app is a simple yet powerful way to manage financial health. It brings clarity to the financial situation, aids in disciplined spending, helps in setting and achieving financial goals, and enhances financial literacy. Embrace this digital tool to take control of your finances effectively and securely.
Mohd Adnan, Senior Analyst, esgbook
Set Up Security Notifications
With the prevalence of cybercrime and identity theft, one of the best things you can do is set up security notifications from your financial institution and credit card providers through their mobile apps. You can receive instant alerts of suspicious activity and take appropriate action to lock or cancel an account. Responding quickly is one of the best ways to combat scammers and identity thieves before they can do any damage.
Damon King, CFP®, Wealth Management Advisor, ChappelWood Financial Services
Create a Reverse Budget
My #1 tip for managing your financial life via apps is…don’t. 9/10 people stop using budgeting apps after just a few weeks. So, whatever you can do consistently for your finances is the most important thing. One trick is to create a reverse budget: fund your priorities, such as retirement savings in a 401(k), first. This approach is great because it’s automated. Whatever is left over in your checking account is yours to spend however you want, guilt-free.
Figure out what matters and make it automatic, and remove the burden of choice. Whatever system works best for you, whether an app, automatic drafts, or another approach, do what works for you.
Jordan Spencer, Financial Planner, Vox Financial Planning
Give Yourself Grace With Apps
It is important to remember that the path to financial freedom/health is a journey and not a race. There are a multitude of financial-health apps available, and the one tip I would give is to give yourself grace getting to know the app you choose. You won’t be an expert overnight. You may fall off the wagon a few times, and that is okay! The important thing is to get back at it. Just like an athlete who trains their body for success on game day, it is a similar process for financial freedom/health!
Karmi Gutman, Financial Planner, Lifestyle Planning, LLC
Be Cautious With Login Information
Apps can be helpful to keep up with expenses and aggregate them together (spending on debit cards, credit cards, Venmo, etc.). However, be very leery of sharing any login information for bank/credit accounts with apps that you’re not familiar with. They may be imitating trusted sites and stealing your login information. Some banking apps integrate the Dave Ramsey envelope system to help you categorize your savings, which can be motivating for saving money.
Stacey Hyde, President, Envision Financial Planning, LLC
