Personal finance apps like YouNeedABudget or Mint helps spendthrifts to take stock of their spending habits. Then, some of these apps are also prone to security threats because they have financial and bank details. It includes your bank information, card details, and things like that. It means that you should use such apps carefully and take preventive measures to avoid security threats. Then, you need to take some time out of your busy schedule and learn the app features in-depth. Yes, you will need to spend some time to discover the true potential of the apps without risking your financial data.
Apps such as Mint get an idea about your finances and collate data from your savings, checking account as well as debit and credit cards. Such personal finance apps are quite popular these days and give you a complete picture of your finances in minutes according to millions of users.
According to an article published on Huffingtonpost, there are apps like Qapital that helps you transfer money to your savings account. You can set aside, say, 5 percent every time you get your month’s pay from your employer. This way, if you keep saving 5 percent or more every month, you will end up saving quite some money at the end of the year. Then, you must know how to use these apps. Here are some of the best tips to use finance apps to your advantage:
Focus on cash transactions
The greatest benefit of personal finance apps is that they add a certain portion of your income to your savings. It refers to the use of your credit cards or the alert you have set for the app. These apps give you a bigger picture and identify areas where you can save some money every month
Mint, for example, gives you no clue how to spend your cash. Therefore, it is imperative to focus on your cash transactions. Make sure that you keep all your cash receipts and integrate them into the app. You can tap on the ‘Add transaction’ button on the Mint app under the transaction tab. Remember to write a short description related to the transaction and categorize your personal expenses. It will help you manage your cash in a smart way. Then, you need to study the app to understand its features and options. There is no need to hurry. Take your time.
Divide your transactions based on categories
Creating a budget is not simple if you do not have an idea of how you are spending your cash and purchasing things. Then, there are certain purchases that include transactions in various categories. For example, you may have bought many items like toiletries, grocery, books, and clothes from an online shopping portal. These come under different categories such as garments, books, toiletries, and groceries.
Use the app to divide your transactions into different categories so that it becomes easy for you to answer for the items you have bought online. This way, there is no need to put all your transactions into one category. Besides, if you have taken out a loan from a lender with genuine debt settlement reviews, you can account for such expenses as well through personal finance apps.
Password protect your app
When it comes to personal finance or budget apps, they encrypt passwords to protect from the unscrupulous hacker who tries to steal your financial data. If a hacker wants information, he or she will need to decrypt the passwords first, without which nothing is available to the fraudsters. Then, you need to be careful yourself. You cannot leave your iPhone without a password on a coffee table at Starbucks for someone to steal your bank data and use the same to his or her advantage.
The moral of the story is password is important for protecting your phone and personal finance apps. Besides, there are in-built security features to protect your financial information. It is all about staying careful and using the best apps in the market.
When you set passwords for the app, choose something that no one can guess easily. Then, you need to use a password that is easy for you to remember. Even if you forget, there are password recovery options as well.
Set your monetary goals
It is of no use in tracking your financial transactions if you do not set a financial goal for yourself. The budget apps help you to set goals and offer ways to realize your financial objectives fast. There is no doubt about the same. The basic thing is asking you for a sum that you want to save at the end of every month. It is one fundamental feature most personal finance apps have. You will need to set an amount that you know will help you realize your goals. For example, if you have a debt of $15,000 to pay off in 12 months time, you need to set aside approximately $1,250 every month if you do not want to default. Defaulting will make you incur late payment penalties and the balance will keep increasing.
Besides, use the apps to get tips on how to improve your credit rating, find a reasonable rate of interest, and look for a competitive quote for a new car, and things like that.
Classify your expenses
Apps such as Mint come with the tag feature to help you organize your daily expenses. Let us explain this point with the help of a suitable example. Say, for instance, you have a home loan, a vehicle loan, and one higher education loan for your kid.
The best way to make things easy is by categorizing the expenses associated with the source. There is no need to pull all of these expenses into a single category. On the contrary, individual categories will help you see the cost of each of the assets and find opportunities to save cash so that you can repay the loans to your creditors as soon as possible.
Now that you have these tips handy, use your personal finance app to save more money and repay your debts quickly.