Why You Need a Budgeting App For Your Finances

Preparing and sticking to a monthly budget can be vital to your financial success. If you are beginning, being aware of the amount of money that enters and exits your bank accounts regularly is a habit worth developing.

Having the proper support is an excellent way of making your habit stick. A full-featured app is among the best budget tools you can use. There are awesome financial apps available that you can use to view your recurring expenses, follow your spending, and manage your money. 

If you doubt whether a budgeting app is appropriate for you, there are plenty of reasons why you should consider signing up for one.

Automatic Alerts

Budgeting apps can assist you in keeping track of your finances; however, this can only be possible if you keep looking at the app regularly. Fortunately, budgeting apps have a feature on that end; automatic alerts notify you of any significant events even without opening the app. 

For instance, a financial app can send you a notification in case of an unusual transaction in one of your accounts, giving you an opportunity to check for fraud. Budgeting apps can remind you of impending due dates for bills assisting you in avoiding late or missed payments that can lower your credit score. In addition, the app can allow you to check if your accounts fall below a threshold that might result in a costly overdraft.

Most financial apps allow you to customize the alerts they generate, meaning it's possible to tailor the experience based on your needs. In case of automatic payments set up for your credit cards, you may not need an alert for each upcoming due date. If you aim to have your checking account balance above a certain threshold, you can set up notifications to inform you if the amount ever falls below that limit.

The customizable alert feature lets you get informed of every event you care about, making the app quite essential even if you are not checking it every day.

Real-Time Information in a Single Place

Individuals hold numerous financial accounts, including online savings accounts, current accounts at local banks, brokerage accounts, and various retirement accounts from previous employers. Not forgetting the countless numbers of credit cards individuals have. Based on the Experian Consumer Credit Review report in 2019, every American has around four credit cards on average.

In addition, you might have different accounts to keep track of. If you want to check your account's balances without a budgeting app, you might have to login into two or more different websites to view all your transactions.

The budgeting app provides a central platform to check all information from your different accounts. It aggregates all the information on a single dashboard. With a single click of a button, you can open the app and access real-time balance information for all your investment, bank, and credit card accounts. 

The app makes it easier to understand where you are financially, and to figure out what you can afford before making a purchase.

Tracking Progress

Most budgeting apps keep track of all your finances over a long period; this can assist in keeping track of your actual financial progress and other specific goals.

For instance, most saving apps will allow you to set saving goals. For instance, you may want to save $500 for a weekend trip. It's possible to create the goal in the app and designate the specific account you will use to save and keep tracking your progress.

Every time you deposit some cash to the savings accounts, the financial app will keep track of that progress towards the goal so  you can quickly see how close you are to packing your bag and setting off on your road trip.

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Research finds that every American has around four credit cards on average.

Experian Consumer Credit Review

Easy Budgeting 

When it comes to financial management, building and following a budget is the hardest part. Apart from the discipline, you must stay within your budget; you must keep track of each purchase by noting the amount you have spent and what you bought.

Luckily, personal financial apps do the job by automatically tracking your spending and categorizing purchases for you. When setting up the app, enter the expected spending on various categories, including rent, groceries, entertainment, and gas.

Every time you use linked accounts to buy something, the app notes the expense and categorizes it. It's possible to check your budget at any time to see the amount you have spent and the remaining cash left for your budget for the month.

With a budgeting app categorizing and tracking your expenses, you must remain disciplined and stick to the limits you set for yourself.

Avoiding Mistakes 

Although no one likes making mistakes, financial mistakes can be costly. An overdraft in a checking account can make a $5 purchase be a $40 expense after adding the overdraft charges. A missed credit card payment can result in immediate pain due to missed payment fees and interest charges. In addition, it can lead to long-term financial damage resulting in lower credit scores and higher interest rates in the future.

With our budgeting system and effective alerts, you will be better aware of your money. This will make it easier to keep track of payment due dates and checking account balance, meaning you make no or fewer mistakes. Considering the high stakes of managing finances, using an app to assist in avoiding mistakes is a great idea.

Conclusion

Keeping track of your finances can be challenging; however, it's essential if you want to take control of your entire financial life. A budgeting app will make it much easier to track everything by allowing you to view all your bank accounts in one dashboard.

After setting up your ClearMoney budgeting app, you can automate your budget and various aspects of your life, including investing and moving money to a savings account. ClearMoney budgeting app has an automation feature that makes saving easy. So, what are you waiting for? Sign up for a free budgeting app and start your journey to financial success.

This article was written by

Nachana Stiven is a former banking and personal finance analyst. She has worked as a personal finance adviser, writer, editor, and content strategist in baking, insurance, credit cards, and investing. As a business owner and financial advisor, Nachana has first-hand experience with problems people face when making financial decisions.

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