Top Tools for Saving and Budgeting

Creating a budget that works for you, and that you actually stick to, is the first step towards becoming smarter with your finances and being able to reach your financial goals. However, as many of us know, it can be difficult to keep track of where your money is going, and whether or not you’re spending too much. 

PFM, or personal finance management, has been a part of digital banking platforms and apps for nearly two decades. This service allows users to get personalized financial insights and advice regarding their financial habits, whenever they want it. Banks and fintechs know customers are looking to gain more control over their finances, so there has been an increase in the number of PFM tools and apps on the market. Surprisingly though, only about 47% of millennials even dedicate any time to their personal finance management. And banks and fintechs alike have struggled to gain user adoption for what was said to be a “revolution in digital budgeting many years ago.” 

Budgeting and saving can seem daunting to many people, as cutting back on spending can seem a lot like meager and deprived living. Other times, people view budgeting and dieting similarly, in the sense that one bad day ruins the whole effort. Although many people are eager to start budgeting, many people are also unable to stay dedicated to it long enough to see the benefits. In fact, 73% of fintech app users cancel their accounts within their first seven days. So, finding a method that works best for you is essential for sticking to your budget long-term and successfully saving money. 

Online Worksheets Are Still The Old Reliables 

There are numerous different online worksheets available, most times for free, that allow users to break down their finances into different categories. This allows you to see how much you should be trying to spend in each financial category in order to stay on track with your financial goals. You can even find worksheets with different columns for planned versus actual spending, so you can see how close to meeting your goals you were. Some of the platforms available for worksheets are listed below. 

• Google Sheets: Google Sheets is a free-to-use platform that has many different pre-made budgeting worksheets. These sheets range from weekly budgets to monthly budgets, so you are able to break down your finances in whichever way works best for you. You can even create your own template from scratch if the pre-made ones are not best suited for your financial goals. 
• Vertex42: Vertex42 offers numerous different budgeting and saving templates that are free for download. The templates vary from family budgeting to bill and expense trackers to saving goal trackers, offering you whatever works best for your personal financial needs. 
• Printable Worksheets: If having a physical worksheet to fill in and work with is more your style, there are plenty of pre-made templates online that you can print and use. This allows you to keep your tracker with you and visible whenever you need it. 

Is There A (Budgeting) App for That?

If creating or managing a worksheet seems like a lot for you when you’re just starting out, there are plenty of mobile apps that offer similar features. Most apps can be directly connected to your banking account, so all of your income and expenses will be linked to your app hassle-free. 

• Mint: Mint is a free mobile app that allows users to sync their banking accounts so it can sort and track each expense into different customizable categories. For instance, if you want to spend under $100 on groceries a month, Mint can track your spending and alert you when you are approaching that limit. Additionally, Mint also shows users updated credit scores and net worth. 
• YNAB: When money goes into your account, YNAB will automatically calculate how much users should be spending on different categories and how much should be saved. This allows users to better manage their money by seeing how much should be spent and where. The app costs $14.99 per month. 
• HoneyDue: HoneyDue is a great option for families or partners, as it allows you and a partner to sync both of your bank accounts. Users can set limits on different spending categories, and the app will alert you when you or your partner are reaching those limits. The app is free for users as well. 

Automate Your Savings Until Saving is Automatic  

Setting aside money for savings or an emergency fund can be hard to do, especially if you are frequently going over your budget. In fact, 42% of Americans do not even have $1000 in their savings account and 26% of Americans don’t have any emergency money saved up. There are two different ways that you can automate your savings to help easily build your account. 

• Splitting Your Deposits: Splitting your direct deposit allows you to put different amounts of your paychecks into different accounts. For example, you can funnel 80% of your paycheck into your checking account and the remaining 20% into your savings account. This prevents you from being tempted to overspend and left unable to save anything. 
• Automatic and Recurring Transfers: Many banks allow clients to set up automatic and recurring transfers on a period basis of their choosing. This could be useful for billing payments, to ensure there is enough money in your account by the time the payment is due. 

Additionally, many banks have started offering AI-generated chatbots that can help you with your finances too. These chatbots are able to track users spending and provide personalized financial advice. For example, Bank of America’s virtual financial assistant, Erica, helps users understand their financial habits over 2 million times monthly. This allows users to get an immediate, accurate, and personalized recommendation right from their own bank. 

Saving and budgeting your money doesn’t have to be a daunting and difficult task, especially once you become more familiar with different tactics and tools that work best for you. Eventually, it will become a natural part of managing your finances and your financial goals will become more achievable. 

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