When it comes to budgets and investing, it’s hard to know where to even start. If you’re anything like me, you probably don’t want to embark on anything that’s going to take up too much time or brain space — you just need to check these things off your list. These are the three apps that helped me get my finances in order (and keep them that way) by knowing where my money is going, investing for my future, and tracking my net worth.
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YNAB: know where your money is going.
I never thought I’d type the phrase “I love budgeting”, but here we are. I’m a huge fan of YNAB (short for You Need a Budget) and have been using it consistently for over a year.
Even if you don’t think budgeting is for you, it’s so important that everyone — regardless of their income — know where their money is going.
YNAB’s whole concept is giving each dollar a job. A lot of “budgeting” apps show you how you spent your money the previous month, but with YNAB you decide where your dollars will be spent when they hit your bank account. You can always move things around, so nothing is set in stone (and you don’t have to feel guilty about those shoes you just had to have).
Each morning, I get notified about any cleared transactions and I quickly categorize and confirm each one. Doing this regularly forces me to put my eyes on every transaction that goes through my account — which is how I recently discovered someone stole my credit card and made over $1,000 in fraudulent purchases (don’t worry — I got it all back).
YNAB isn’t just an app, either. They have created so many valuable resources to actually teach you how to budget. Whatever your financial situation, you can find articles, videos, and workshops that are specifically geared to your needs.
You can try YNAB for free for 34 days, and then it’s $11.99 a month (or $84 a year) after that. On average, new budgeters save $600 in the first two months and $6,000+ the first year (that’s like a 7,000% return on your investment).
Mint: track your net worth.
Net worth sounds like something for the old and wealthy, but whether you have student loans, own a home, or contribute to a 401K through your employer, knowing your total net worth gives you a birds-eye view of your finances.
What is net worth, you ask? It’s simple — just add up your assets and subtract your debts to find your net worth. Your assets might include your bank balance, retirement account, cars (or other vehicles), or your home. Debt is money you owe — your student loan, mortgage, credit card payments, or other loans. If you have multiple assets and debts, however, your net worth can quickly become difficult to track.
Mint is technically a free budgeting app, but in my opinion, their budgeting tools are garbage (which is why I choose to pay for YNAB). What Mint does really well, though, is keep track of your net worth.
Once you sign up for a Mint account, you can connect your bank accounts, credit cards, and other online accounts so your transactions and account balances flow directly into Mint. You can even add information about your car or home and the estimated values will be added to your net worth. As a bonus, Mint will also show you your credit score and alerts you if it changes.
Acorns: invest for the future.
Did you know that if you invest $5 a day, you could have a sweet nest egg by the time you retire? That’s the magic of compound interest. And that’s why you shouldn’t be saving for retirement, you should be investing for retirement. The earlier you start and the more you’re able to contribute early on, the more time that money will have to earn interest. The interest you earn gets added to the total, which then earns interest on itself.
If you know nothing about investing (like me), that’s ok. I use an app called Acorns that automates it all for me and it only takes a few minutes to set up.
Acorns Later makes it easy to open an IRA (individual retirement account), which provides tax breaks to incentivize you to save for retirement. After you sign up and connect your bank account, you can choose to set up auto-transfers for specific amounts or make one-time contributions.
You can open an IRA whether or not you have a 401k through your employer. There’s also an annual contribution limit of $6,000 if you’re under 50 years old.
Acorns has other investing options, too, like Acorns Invest (automatically invest your spare change) and Acorns Early (investment accounts for kids).
The Acorns Personal plan is $3 per month and includes Invest, Later, and Spend (a checking account), or you can get Acorns Invest for just $1 a month.
What personal finance tools or tips have worked for you? Let me know in the comments!