Handling money doesn't have to be complicated or stressful. Whether you're attempting to save, eliminate debt, or simply understand where your money is going every month, the proper financial tools can work miracles. There are so many apps, software, and methods available today that can put your spending in check and balance your finances.
This blog will discuss the best financial tools that everyone needs to use to monitor and track expenses. It aims to help you become more aware of how you can make better money choices and manage your finances.
Before we get into the list, let's discuss the importance of these tools. Without a means of following the money, you can easily lose track of where your money is going. You may think that you are spending less money than you really are, or be leaving behind small expenses that impact you in the long run.
With personal finance tools, you can:
And the great news is, most of these resources are free or low-cost and at your fingertips via your phone or computer.
Budgeting apps are one of the most widely used types of personal finance software out there, and it’s not hard to understand why. They allow you to set up a budget, track expenses, and stay on course.
The majority of budgeting apps allow you to link your bank accounts and credit cards, and they automatically categorize your spending. You can set spending limits for dining out, groceries, or entertainment, and the app will remind or warn you when you hit your limit.
Some of the best budgeting apps to use:
Having an application to work your budget with does make you spend more thoughtfully. You'll be less likely to overspend when you know exactly how much you can spend.
If you like to work the old-fashioned way or want flexibility, a spreadsheet could be the best choice for you. You can have a basic Jane Excel or Google Sheets document that records your income, bills, and expenses.
Most people find that by creating their own money-tracking system, they are more aware of their money. You can set up the categories to suit your purposes and get as elaborate as you prefer.
Here are some things that you can track in a money spreadsheet:
Monthly income
Spreadsheets are particularly useful if you are new to money tracking and need to create better habits. You may also look for free templates online that make the task simpler.
Goal-setting is an integral aspect of managing money. Saving for a vacation, purchasing a car, or creating an emergency fund are just a few examples. Clearly set goals keep you motivated and on track.
Some of the personal finance apps allow you to define goals and monitor your progress. Some allow you to create savings buckets for specific goals. Other apps tell you how much you should save based on your life and income.
Others actually send reminders and save you automatically. You can arrange to have a fixed amount drawn from your checking account into your savings account, say weekly. This is a great way to develop a habit.
Some apps, such as Capital and Chime, include goal-focused features. You can set such rules as "save $5 each time I get coffee" or "round up on every purchase and save the difference."
Once you use these money aids, saving comes easily and isn't annoying.
If you are among those who struggle to save money, a savings planner can be your rescuer. These aids break down your savings goals into bite-sized, manageable pieces so that you don't feel overwhelmed.
A good savings planner will:
Few budgeting apps include a savings planner, or one such as Digit or Simple can be installed as an alternative. These apps make it simpler to plan short-term goals (such as a vacation trip) or long-term goals (such as a house down payment).
With a plan in place, it is now possible to save. You will have a goal in mind, such as how much you have to save every month or every week.
In regards to controlling regular-day purchases, spend management tools are useful. They are meant to track your expenditure in real-time.
Some spend management tools are included in budgeting programs like Mint or Personal Capital. Other spend management tools are standalone applications or browser extensions that track what you're spending and where you're overspending.
Here's how spend management tools can assist:
Truebill (currently Rocket Money) is one such useful tool. It reviews your spending and informs you where you can save money, such as canceling subscriptions you've had for years or negotiating bills. It's an excellent means of preventing money from falling between the cracks.
Spend management tools, if employed on a regular basis, might help you shape wiser habits and steer clear of unnecessary spending.
Not paying a bill on time can rack up late fees and damage your credit. That's why you would be employing financial software that keeps track of bills and reminds you when it's time to pay.
Software like Prism, BillTracker, or even Google Calendar functionality can remind you so you will never miss a payment. These programs bring together all of your due dates into one location and can even connect with your accounts for automatic monitoring.
Payment reminders are particularly useful if you have more than one credit card, loan, or service billing at various points during the month.
Using a basic bill tracker, you can prevent surprise bills and keep your money running like clockwork.
Although not typically included in day-to-day budgeting, credit monitoring is also included in your fiscal wellness. Websites such as Credit Karma or Experian enable you to monitor your credit score, view what's impacting it, and receive recommendations for improvement.
The software will also notify you of suspicious activity, which can prevent identity theft.
If you ever find yourself in a situation where you need a loan or credit card, monitoring your credit score is a smart move.
Other individuals want all their ducks in a row, and that is where all-in-one dashboards enter the picture. They group budgeting software, money tracking, savings planners, and even investments into one login.
A few examples are:
These personal finance websites give you the whole picture, from your daily spending to long-term goals. While some of these websites cost a monthly subscription, the data they provide could be worth it.
Selecting the right financial tools is your choice. It will depend on what you want to do with your money, what you're trying to achieve, and how you feel about technology.
Some starting tips are:
The more you use these tools, the more at ease you will be with money.
Getting in charge of your money begins with understanding where it goes—and that's where smart money tools enter the picture. From a budgeting app, to a savings planner, to following expenses on paper and pencil, there's a tool for every type of money manager.
Discover these tools today and learn how they can change your financial life!
This content was created by AI