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Finance apps are quickly taking over the market, and it isn’t hard to see why. Only 30% of Americans have a long-term financial plan, and only 1 in 3 people have a personalized budget at all. But with financial apps, Americans can start saving and tracking their expenses easily.
6 Personal Finance App Categories You Need to Try
Mobile finance isn’t all about depositing and withdrawing money; it’s about utilizing your financial information to make better choices. Here are 6 app categories that can help you with that.
1. Personal Finance Apps
Personal finance is all about planning and managing your personal finances. For example, personal finance app SoFi allows users to track spending, income generation, savings, and investing. They’ll even go the extra mile to protect your personal information from hackers.
In the past, you’d need to pay a financial consultant to manage all of these tasks. But with personal finance apps, you can track all of your bill payments, soft check your credit score, and diversify your investment portfolio. Everyone can benefit from using one of these apps.
2. Cash Flow Apps
Apps like Quickbooks are marketed to Americans that need a bird’s-eye view of cash movement. Whenever cash moves to and from your checking and savings account or your personal and business accounts, you’ll instantly know how much cash is available to you.
Cash flow management is essential for businesses that hire employees or freelancers. If you don’t have a steady cash flow, you won’t be able to pay salaries on time or grow your company.
3. Building Wealth Apps
Most Americans dream of the day they’ll be financially free, but that won’t be possible without investments or savings. You’ll need to build wealth as soon as possible to generate long-term income from multiple sources. A building wealth app, like Robinhood, can help you do just that.
While you already receive income from your current job, you may not know how to invest it accordingly. At the same time, you probably don’t have access to an investment broker who can manage these funds for you. Thankfully, these apps can help you invest where it counts.
4. Payoff Apps
Staying debt-free isn’t easy. In fact, 77% of American households have at least some kind of debt, with an average of $58,604 per family. Whether you separate debt into categories (good vs. bad debt), that’s still a lot of money that most of us could put towards our retirement.
Payoff apps like Debt Free can help you put more money towards your debts. When you have less debt to pay, you’re more able to accomplish your future goals, like buying a house.
5. Budget Management Apps
As stated, most Americans don’t have a budget. You’re more likely to find someone that spends more than they make or spends according to their income tax bracket. While that isn’t always a bad thing, debt can start piling up if you spend frivolously and don’t save enough for necessities.
Even people who make six figures can quickly fall behind without a budget. But with budget management apps, you can track your income and expenses and utilize several budgeting and bill monitoring tools. Plus, you’ll receive a notification if you’re close to overspending.
6. Expense Tracker Apps
Although most of the above app categories also include an expense tracker for free, they aren’t always as detailed as you’d expect them to be. Apps like Expensify specifically track your expenses, allowing you to stay on top of your cash flow and prepare for the yearly tax season.
If you’re self-employed, you’ll really need an expense tracker. Quarterly tax payments can be a pain, but you can estimate what you own directly from an expense tracker app.
