How to Make a Personal Finance App Work for You
Updated: Jun 13
Image via Pexels
Perhaps you've never tried managing your finances through a personal finance app. Maybe you're rather nervous about having so much of your information in the same place, or maybe you simply don't know how personal finance apps work. If this sounds like you, then read on for some helpful information that may just convince you to start making a personal finance app work for you.
The Definition of a Personal Finance App
A personal finance app allows you to manage your money from your cell phone or tablet. By importing your financial information and linking to your accounts, you can easily track your income, expenses, savings, and investments in one program. You can also build budgets and create helpful reports. Some apps even allow you to pay your bills and manage subscriptions right in the app. They also provide reminders for financial tasks, such as payments due.
The Benefits of a Personal Finance App
You can probably already see some of the benefits of using a personal finance app. For one thing, all your financial information is in one place, giving you a broad picture of your financial situation as well as specific details. This lets you organize your finances better, for you can budget more easily, track how well you're sticking to that budget, and see exactly where your money goes every month. If you have investments, you can use your app to follow them more closely.
What's more, a personal finance app can help you set goals for yourself and meet those goals. You may make fewer mistakes in your bookkeeping, too, since many apps help you balance your accounts. Overall, you may find yourself more confident in managing your finances and perhaps even a little better off as you learn how to make your money work better for you.
How To Choose a Personal Finance App
Choosing a personal finance app can be rather tricky. Many options are available, and they all have somewhat different features. First, determine exactly how you plan to use the app, then look for one that has the tools you need. If you're incorporating business finances, you may require a few more features geared toward business. Also look for an app with easy-to-use navigation, high-level security, and convenient customer service and tech support.
When selecting a personal finance app, it’s important to choose one that has the security of your personal information in mind. For example, Honeydue allows for multifactor authentication and data encryption to keep this sensitive data from getting into the wrong hands. Mint, meanwhile, allows you to set a PIN just in case you lose or misplace your phone. Of course, choosing a good password (Popular Science offers an excellent guide to creating strong passwords) can go a long way toward protecting your information.
Specific Uses for a Personal Finance App
You may also have some specific uses for a personal finance app. You can, for instance, track multiple bank accounts, and this comes in especially handy if you own a business. Keeping your personal and business accounts separate is an excellent idea. Mixing your funds may increase your personal liability, especially if you own an LLC.
You can also use a personal finance app to help you save money and get organized to buy a home. You can access an affordability calculator, for example, to help you figure out your mortgage payment by plugging in the home's cost, your down payment, and other factors.
Using Your Personal Finance App
If you're now convinced that a personal finance app can help you thrive economically, take the plunge and start using one right away. Also, visit the Institute for Sustainable Development's website for some economic inspiration.
Guest Blogger Amos Faulkner wants to help people “do money well.” Money is a constant in our lives. Yet, as a bank teller, Amos realized that many people don’t pay enough attention to how much they have or how much they need, now and in the future. Well, now, the buck stops with his site, domoneywell.com. From teaching your children how to manage their money to saving for your golden years, Amos will cover it all.
Disclaimer : “The views and opinions expressed here are those of the authors and do not necessarily reflect the official policy or position of the Institute for Sustainable Development (ISD). Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything. ISD values and welcomes diverse representations and opinions.”