Many articles and blogs about getting finances together focus on using money management apps to stay organized and get on track. Software like Mint and Quicken have templates for budgets and handy tools for cash flow calculations, taxes, and other personal financial elements.
They are helpful when they are used correctly. While money management software is functional, it is not foolproof. Ways to ensure finances improve include
- Recognizing the limitations
- Researching what is needed
- Not obsessing with features offered
- Working a financial plan
Limitations
There are numerous so-called free financial tools across the web and mobile app stores. Free does not necessarily equate with a good fit for someone’s situation. An old saying states a free lunch does not exist. Every purchase decision, even a free one, has implicit or hidden costs.
.A friend buying lunch means spending time with them, limitations on food selection, and possible request for a favor. A free finance app may have limited functionality that requires paying to unlock better features. The app may have advertisements that can interfere with usability.
An app author may farm and sell user data, which is of particular concern when data is associated with financial practices. Investing in a discrete tool with upfront and precise cost and defined features may be safer than utilizing a free app that you may not know the implicit cost.
Researching for What Is Needed
Bigger does not necessarily mean better. Trying to manage the features of financial software can quickly bog you down. If those features are of no benefit to you, devoting energy and time trying to manipulate and understand them is a waste.
The money management system you choose depends on your cash flow and expenses. A single person with one source of income and few expenditures does not need an enterprise-level application. If you juggle multiple income streams and have debt, dependents, or other complex issues, more robust software for money management is in order.
Do some preliminary work to develop financial goals and understand your financial situation before choosing a money management tool. You need a sense of the features that will aid in pursuing financial health. Try different financial tools, especially those in software-as-a-service formats that are low in cost.
Obsessing with Features
Do not mistake combing the achievement of financial success with tinkering with a financial program. When too much energy and time is spent managing features, you are not devoting enough time to changing financial habits that generate wealth.
Tinkering is often done in the pursuit of perfection within the financial system. Perfection does not exist, particularly regarding personal finance. Financial plans change over time, but that does not mean you should scour spreadsheets for indications or errors that need to be changed.
Working the Financial Plan
Money earned through work pays for necessities, such as food, shelter, utilities, and transportation. Your financial plan may also include investing. Investing puts money to work to generate more money, which goes to various lifestyle improvements. Instead of worrying about whether you made the right choice of financial tools or if your budget is perfect, focus on your financial goals every day and observe what should and can be changed over time.
Some Money Management Tool Suggestions
Acorns
Acorns is a simple app that syncs with your debit or checking account and your credit cards. The app rounds up the price to the next dollar when you make a purchase. If you spend $6.74, the app takes 26 cents and automatically sends it to your Acorn account.
There are options for double or triple roundups. You can automatically set up a weekly or monthly amount to go into your Acorn account. The most significant aspect for those who struggle with savings is the ‘set it and forget it’ feature.
When the money goes into the account, it is invested in different investment choices that range from a conservative to an aggressive portfolio. It depends on what the funds will be used to pay. A very conservative portfolio is recommended if it is for an emergency fund.
Funds with no specific earmark can be invested at the level of risk that makes you comfortable. It is suggested to err on the side of caution and be somewhat conservative, especially if you are new to investing.
YNAB
YNAB is a budgeting tool based on four simple rules that help take control of your money
- Give money a job
- Embrace your expenses
- Go with the flow
- Age your money
It does not let you budget money you don’t have. Only the money in your possession is placed into your budget. The goal is to be able to pay your bills with no stress and stop living paycheck to paycheck. You should be able to deal with unexpected expenses and emergencies without becoming overly anxious.
Planning ahead and avoiding debt is the function of the app. You gain peace of mind and control over your money. It is a little overwhelming to figure out, but there are YouTube videos that explain how it is done. There is a free 34-day trial for the app.
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Many articles and blogs about getting finances together focus on using money management apps to stay organized and get on track. Software like Mint and Quicken have templates for budgets and handy tools for cash flow calculations, taxes, and other personal financial elements.
They are helpful when they are used correctly. While money management software is functional, it is not foolproof. Ways to ensure finances improve include
Limitations
There are numerous so-called free financial tools across the web and mobile app stores. Free does not necessarily equate with a good fit for someone’s situation. An old saying states a free lunch does not exist. Every purchase decision, even a free one, has implicit or hidden costs.
.A friend buying lunch means spending time with them, limitations on food selection, and possible request for a favor. A free finance app may have limited functionality that requires paying to unlock better features. The app may have advertisements that can interfere with usability.
An app author may farm and sell user data, which is of particular concern when data is associated with financial practices. Investing in a discrete tool with upfront and precise cost and defined features may be safer than utilizing a free app that you may not know the implicit cost.
Researching for What Is Needed
Bigger does not necessarily mean better. Trying to manage the features of financial software can quickly bog you down. If those features are of no benefit to you, devoting energy and time trying to manipulate and understand them is a waste.
The money management system you choose depends on your cash flow and expenses. A single person with one source of income and few expenditures does not need an enterprise-level application. If you juggle multiple income streams and have debt, dependents, or other complex issues, more robust software for money management is in order.
Do some preliminary work to develop financial goals and understand your financial situation before choosing a money management tool. You need a sense of the features that will aid in pursuing financial health. Try different financial tools, especially those in software-as-a-service formats that are low in cost.
Obsessing with Features
Do not mistake combing the achievement of financial success with tinkering with a financial program. When too much energy and time is spent managing features, you are not devoting enough time to changing financial habits that generate wealth.
Tinkering is often done in the pursuit of perfection within the financial system. Perfection does not exist, particularly regarding personal finance. Financial plans change over time, but that does not mean you should scour spreadsheets for indications or errors that need to be changed.
Working the Financial Plan
Money earned through work pays for necessities, such as food, shelter, utilities, and transportation. Your financial plan may also include investing. Investing puts money to work to generate more money, which goes to various lifestyle improvements. Instead of worrying about whether you made the right choice of financial tools or if your budget is perfect, focus on your financial goals every day and observe what should and can be changed over time.
Some Money Management Tool Suggestions
Acorns
Acorns is a simple app that syncs with your debit or checking account and your credit cards. The app rounds up the price to the next dollar when you make a purchase. If you spend $6.74, the app takes 26 cents and automatically sends it to your Acorn account.
There are options for double or triple roundups. You can automatically set up a weekly or monthly amount to go into your Acorn account. The most significant aspect for those who struggle with savings is the ‘set it and forget it’ feature.
When the money goes into the account, it is invested in different investment choices that range from a conservative to an aggressive portfolio. It depends on what the funds will be used to pay. A very conservative portfolio is recommended if it is for an emergency fund.
Funds with no specific earmark can be invested at the level of risk that makes you comfortable. It is suggested to err on the side of caution and be somewhat conservative, especially if you are new to investing.
YNAB
YNAB is a budgeting tool based on four simple rules that help take control of your money
It does not let you budget money you don’t have. Only the money in your possession is placed into your budget. The goal is to be able to pay your bills with no stress and stop living paycheck to paycheck. You should be able to deal with unexpected expenses and emergencies without becoming overly anxious.
Planning ahead and avoiding debt is the function of the app. You gain peace of mind and control over your money. It is a little overwhelming to figure out, but there are YouTube videos that explain how it is done. There is a free 34-day trial for the app.
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