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7 Benefits of Using a Personal Finance Management App

April 13, 2021

We all have that friend that seems to know how to manage their money like a pro. They have multiple spreadsheets and never forget to balance their checkbook. They know precisely how many rewards points their credit card gives them for each purchase.

We live in an era where we can all be that friend. There’s no need for manually balancing checkbooks anymore — not when there’s a personal finance management app for it!

Why You Should Use a Personal Finance Management App

Personal finance management apps make banking more straightforward than it’s ever been. For instance, you can access your various accounts from your mobile device anytime, anywhere, so you’re never in doubt about your balances (which is especially useful for people who have accounts across multiple banks).

Mobile finance apps also provide you with unprecedented insight into your overall financial health. How close are you to reaching your savings goals? How much money are you spending compared to what you’re earning? For example, you could use Mint to track all your money coming in and going out, PocketGuard can help you stop spending money you don’t have, and Earnin to access your paycheck before payday if you have expenses due before it comes in.

The benefits of using a personal finance management app are numerous. Some additional advantages include:

You Can Set (and Stick To) a Budget

Is budgeting one of your weak points? Perhaps you don’t know how much your monthly budget should be, or you have a hard time sticking to it. With a finance app for Android or iPhone, you can calculate how much you owe for all of your major expenses (such as rent, food, utilities, transportation, loan repayment, etc.), and then allot the remainder between savings and recreational spending that will keep you in a financially safe position.

GoodBudget is an app that allows you to separate your budget into categories, so you are less likely to overspend one or another.

Avoid Late Fees

Late fees are the bane of many people’s existence. Sometimes we forget to pay a bill, and other times, we don’t have enough money to cover particular expenses before they’re due. It doesn’t matter if it’s your fault or not — you’re hit with a late fee.

You can try calling a customer service representative at the institution you owe a late fee to and ask if they’ll knock off the charge, but if that doesn’t work, a finance app can help you avoid late fees in the future. Many apps can track your bills’ due dates, so you never forget to pay them.

Avoid Overdraft Fees

If you’ve opted into overdraft protection, then overdraft fees occur when you try to make a purchase with your checking account that exceeds how much you have in it. If you only have $20 in your account but buy $30 of gas, then your bank will loan you the $10 you need to cover the difference so the transaction doesn’t decline — but they’ll also charge you around $34 for their “inconvenience.” If you don’t want to deal with overdraft fees, use a personal finance management app that includes low balance alerts, so you know when your account needs replenishing.

Assess Your Spending Habits

This is a sore spot for many people: poor spending habits. You deserve to have fun and buy things that will make you happy, but impulse purchasing can drain your account before you know it. It’s also possible you think you can afford a night out on the town, but one $10 drink means you don’t have an extra $10 for healthy food from the grocery store.

The right mobile finance app can monitor your spending habits and tell you where your money is going. If too much goes to unnecessary expenses, you know what you need to cut back on (and eventually, what you can add!).

Monitor Your Expenses

Similarly, finance apps can keep track of how much you pay for essential expenses. You already know how much rent, food, and loan repayment cost, respectively, but looking at the total can put things in perspective. If you’re spending what looks like too much on essential expenses, then you can try negotiating with your service providers for lower rates or take other steps to reduce them.

Reach Your Financial Goals

Knowing you need to change your spending and saving habits is one thing, but actively doing it and seeing the results is another. A personal finance management app or finance calculator app can hold you accountable so you can resist the temptation to dip into your savings. Are you saving for a significant purchase, like a home or vehicle? The act of saving can feel slow-going, but apps like Peak enable you to visualize your progress and provide you a motivational boost.

It Makes Banking Easy

Gone are the days when you have to wait to get home to balance your checkbook or manually fill out a budget spreadsheet. Personal finance apps allow you to access, monitor, and change your banking information whenever you need to. Plus, many apps on the market have user-friendly interfaces that are easy to navigate, so you don’t have to deal with complex documents or lengthy customer service calls nearly as often.

There are numerous finance apps for iPhone and Android available in each app store. Consider your financial goals and habits, browse around, and decide the one (or two) that’s right for you.


Photo by Mark Finn on Unsplash

Please note, the material contained in this blog is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.

1Disclaimer: Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

2Disclaimer: Balance Shield cash out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit earnin.com/TOS.

3NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit https://www.earnin.com/wewin/. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a Earnin ®), 200 Portage Ave, Palo Alto, CA 94306.

4Disclaimer: Up to 2 days early is based on comparison with traditional banks. Exact timing is dependent on your employer's payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

5Source: Internal analysis conducted by Earnin on December 10, 2020.

1Restrictions on use of Services and/or third party fees may apply, see Earnin.com/ privacyandterms for details.

2Balance Shield cash out is subject to your available earnings and daily pay period max. Other restrictions and/or third party fees may apply. For more information visit Earnin.com/privacyandterms.

3Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% APY and $0 monthly fee service. Other restrictions and/or third party fees may apply, see Earnin.com/privacyandterms for details.

1Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

2Restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

3Balance Shield cash out is subject to your available earnings and your daily pay period max. Other restrictions and/or third party fees may apply, see Earnin.com/TOS for details.

4NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit WeWin Game & Sweepstakes Official Rules. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a EarninⓇ), 200 Portage Ave, Palo Alto, CA 94306.

5Tip Yourself Account funds are held with Evolve Bank & Trust, Member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information/details visit earnin.com/tos.

6Up to two days early is based on comparison with traditional banks. Exact timing is dependent on your employer’s payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/tos.

7Your Max on Earnin Express is up to 80% of your payroll or $1000, whichever is less. The 80% is dependent on you routing your full paycheck to Earnin Express. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

8By using Cash Back Rewards (powered by Empyr) you allow participating merchants and/or card networks details of your transactions. For more information, see Earnin.com/tos.

9Learn how we collect and use your information by visiting our Privacy Policy.

1Disclaimer: Restrictions and/or third party fees may apply, see earnin.com/tos for more details. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection.

2Disclaimer: Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection. Restrictions and/or third party fees may apply, see Earnin.com/TOS for details

3Disclaimer: Community Member must have had at least 1 successful debit with Earnin. Limit to 1 Max Boost per pay period. A boost will not adjust a Community member's daily max. Restrictions may apply, see earnin.com/tos for more details

*Disclaimer: Balance Shield cash out is subject toyour available earnings and daily pay period max.Other restrictions and/or thirdparty fees may apply. For more information visit earnin.com/TOS

1Restrictions may apply, see earnin.com/tos for more details. Tip Yourself Account funds are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service. Your Tip Yourself Account and any Tip Jars are not Savings Accounts. For more information/details visit earnin.com/tos

2Disclaimer: NO PURCHASE NECESSARY TO ENTER OR WIN. Must be 18 years of age or older and a legal resident of the U.S. or DC. Games begin each Sunday starting 12/6/20 at 9:01 p.m. ET and end the following Monday at 9:00 p.m. ET with the last Game ending 12/19/21. To download the App, view the Official Rules, odds disclosures, prize details, and alternate means of entry, visit https://www.earnin.com/wewin/game-rules/. Void where prohibited. $10,000,000 grand prize payable over 29 years. Sponsor: Activehours, Inc. (d/b/a Earnin), 200 Portage Ave, Palo Alto, CA 94306.

3Disclaimer: Restrictions Apply. See earnin.com/tos for more information

*Disclaimer: Up to 2 days early is based on comparison with traditional banks. Exact timing is dependent on your employer's payroll policies. For more information on eligibility and requirements of Earnin Express, visit earnin.com/TOS.

**Disclaimer: Restrictions and/or third party fees may apply, see earnin.com/tos for more details. Lightning Speed may not be available to all Community Members. Cash Outs may take up to thirty minutes, actual transfer speeds will depend on your bank connection.

*(*) Internal analysis conducted by Earnin in January 2021, represents total users who Cashed Out at least once from January 1 to December 31, 2020.

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