According to the 2019 Choosi Dollar Report, 69.4% or seven out of ten Australians have strong financial knowledge, but only 30% or three out of ten are confident in making financial decisions. Half of Australians also worry about their money daily or weekly, making financial stress one of the main causes of stress.
The greatest risks to financial security for many Australians are unexpected events/accidents, the lack of savings, health issues and the inability to work. Budgeting and saving can reduce these risks significantly and set you up for a better future and a more relaxed retired life. Unfortunately, many do not have the savings that can protect them from financial danger. Only one in five Australians does not have emergency funds, whilst 31% do not have sufficient funds to sustain them for more than a month.
Most often, we overspend and end up struggling with our finance management because we do not set a budget and stick to it. Budgeting and saving are still the best ways to become debt-free and save more money.
Money-Saving App – What Is It?
A money-saving app is a smartphone application that is made to help individuals manage their finances and save money without exerting too much mental energy in tracking the cash flow. It is easy to use and can be customized according to your lifestyle.
Each app has its own features, but the goal of these apps is the same: to help you build your personal fund and eventually develop healthy financial habits. In general, a money-saving app offers the following:
1. Automatic Deposit
You get to decide how much you are willing to set aside for your monthly savings. Once you have set the value, the app will automatically do it for you. By doing this, you make saving money easy and avoid the temptation of not setting aside for your financial goal.
2. Micro Investment
Certain savings apps provide their users with the opportunity to invest their small money in stocks and bonds. It may not look as much, but the small amount will eventually grow and contribute to your financial goals.
3. Rewards
Other apps also offer rewards for their user’ shopping behaviour. This can be reward points or cash incentives when you shop with affiliated stores or restaurants.
4. Loyalty Programs
Being part of a loyalty program is another great way to save money. Some stores partner with money-saving apps by offering coupons, discounts and other incentives whilst helping you track your spending.
5. Cash Back
Other apps offer a straight cashback to users as their reward. When you take products that are part of the deal, you only need to send a picture of the receipt. The cash reward will then be deposited into your online account.
Money Manager as a Budgeting and Savings App
Money Manager combines money and psychology to help you stick to your budget. Golden Eggs created this money management app to help you set long-term financial plans and allocate a smaller allowance to cover regular spending. It also lets you save some amount for a monthly fun allowance so you can enjoy yourself more.
The Money Manager app recommends having separate transaction accounts for your savings and your bills. With one account allocated for fixed bills and one for savings, you can manage your cash flow better. This will ensure that what you’ll spend for fun won’t leave you short on your bills next month. When everything is in one account, you might end up spending everything on your immediate needs and without savings for your dream house.
How a Savings Tracker Can Help You Save More
Saving, particularly for an emergency fund, can be done with the help of a savings app. The more you save, the better it will be.
Keep your expenses low
Keeping your expenses low means you will be less likely to get into debt. Getting into debt or using your credit card when you are short on your spending will only cause you more money because you will have to pay for interests that can actually go to your saving and or investment.
Prioritise expenses
The savings tracker helps keep things in perspective by focusing on your priority expenses. When you know what your priorities are, it would be easier to avoid unnecessary spending and build your emergency fund or investment.
Financial insights
These saving and budgeting apps can help you make better financial decisions, thanks to their ability to gather data and provide a summary of your monthly or annual expenses. When you can see the pattern of your spending habit and where most of your money goes, the insight will help you make a better plan for your finances.
Staying organized
Tracking all of your transactions and keeping them organized is not easy. For many, this is one of the reasons why they lose sight of their financial goals. However, money apps can make your life easier and help simplify your financial records. You get to manage your spending properly as the information is accessible. You will be able to track and check all your transaction from multiple accounts. Everything can be accessed through your phone from your spending habits, debts, investments and savings.
Conclusion
Money management, especially saving, is not easy. Keeping track of your spending and other financial transactions also takes a lot of mental effort, and often, we can’t cope with all the details. Fortunately, money management apps now make money management easier. These apps are great tools that can help you develop healthy money management habits as you track where your money goes and save for the future.
If you need any help with money management, we can assist you. Golden Eggs can give you custom money management solutions that can help you get on track with budgeting and saving. Contact us today.