You know that you should have a budget, but you don’t know why you should have one in a budgeting app. Why not just have a budget inside of an Excel spreadsheet, or scribbled on a piece of paper? The truth is that budgeting apps come with great perks that you won’t get from a spreadsheet, whether it’s sitting on your computer or a crumpled sheet of paper.
Read ahead to find out what some of those perks are.
1. Account Syncing
Many of the top budgeting apps will sync with your bank accounts. By syncing with your bank accounts, you can get a clear view of your income via your checking account deposits and your expenses via your checking account transactions. You won’t need to estimate this information when you’re filling out the categories of your budget. You’ll have the exact answers.
If you’re hoping to boost your savings, syncing your budgeting app with your savings account is a great decision. Doing this will reveal how much you currently have stashed away in your savings account (which could be nothing at all). This could motivate you to include a category for savings in your budget and make frequent contributions. Then, you can watch as your balance grows and grows.
Some budgeting apps won’t just sync with your checking and savings accounts. They can sync with other financial accounts, including your credit cards, outstanding loans and investments!
For example, you might not have enough money in your emergency fund to cover an urgent expense. You know that financial help may be available through a personal loan. So, you apply for a personal loan online and get approved for it. You use the temporary funds to cover the expense as quickly as possible, with the understanding that you’ll have to follow a steady repayment plan to give back what you owe.
Your budgeting app can help you track your loan repayment plan! Since it’s synced with your account, you can carefully manage your payments through the billing cycle and watch as you get closer and closer to paying off the entire loan. Having this feature could make it much easier for you to deal with this financial responsibility. And it could save you from serious mistakes like making late payments or defaulting on your loan.
2. Credit Score Monitoring
Budgeting apps like Mint provide users with a credit score monitoring feature. Your credit score is a general rating of your creditworthiness. A good credit score can help you get approved for future loans, and it can bring benefits like lower interest rates, lower insurance premiums and higher credit limits.
On the other hand, a bad credit score can be a major obstacle. With a bad credit score, you might have your loan applications denied. You might be offered accounts with higher interest rates and minimum deposits. And landlords and employers might reject your applications in favor of more creditworthy candidates.
A credit score monitoring feature will show you exactly what your credit score is. If you’re not happy with where it’s sitting on the FICO scale, you can change it. Paying your bills on time, paying down outstanding balances and correcting errors are all things that can improve your score over time. Use the app’s monitoring feature to track your progress.
3. Account Sharing
Are you in a relationship? Do you split household expenses? Then, a budgeting app could help you manage those shared expenses together. Budgeting apps like HoneyDue are designed for couples that are juggling shared and individual expenses. With this app, you can create a budget that both users can see and contribute to. You can also keep certain aspects of your budget hidden from the other user. For instance, you don’t want to see them budgeting for your upcoming anniversary present — that’s a secret.
Personal finances don’t have to be a source of conflict in your relationship. With the right budgeting app, managing finances will be a breeze for both of you.
Don’t take these perks for granted. Take advantage of them! Download a budgeting app on your smartphone!
