Sarah Spencer
If so, you’re part of the 32% of people in the U.S. to do budget.
Although the majority of us can probably agree that budgeting is a good idea, very few people actually create, regularly update, and follow a consistent budget… which may be part of why almost 80% of us are living paycheck to paycheck.
Whether you budget each week or haven’t touched a budget in months, chances are your personal finance habits could use an update or an upgrade! Here are a few basic tips to get you started.
- Make a budget. Use a budgeting app, a spreadsheet, or even a simple pen and paper – it doesn’t really matter what tools you use, just start planning and tracking how you’re spending those dollars and cents! You may be surprised to see exactly where your money is going, as opposed to where you wish it was going.
- Open a high-yield savings account. You can do a lot better than the 0.0001% interest rate you may be used to! Discover offers a fully online high-yield savings account that offers 1.15% APY, distributed monthly to account holders. This is one of many options! No matter which bank you choose, a high-yield savings account can make dollars of difference year over year compared to a traditional savings account, so consider opening one to make the most of your savings.
- Use the high yield savings account to build an emergency fund. Do I even need to explain why this is a good idea? From a fender bender to an unforeseen health issue, you want to be prepared for whatever major and minor emergencies may be ahead. Even if you can only save $10 a paycheck, that’s better than no savings at all! Ideally, your emergency fund should be able to cover at least 3 months of basic expenses (rent or mortgage, groceries, utilities, and any minimum monthly payments on debt).
Okay, now that we’ve covered the basics – what are some apps that can help to automate and streamline the process of getting your personal finances in order?
Apps
Lucky for you, there are a TON of apps available for free or with fees that can help simplify your money management. Here are a few of the most popular personal finance apps that can help you track your spending, reach major financial goals, and finally start investing.
Mint by Intuit. Love it or hate it, there’s a reason that Intuit’s programs are staples! You may have used one of Intuit’s other programs, like QuickBooks or TurboTax. Mint in particular was made to help people see and manage all of their financial information in one place. Mint is free to use, making it a great place to start. Connect as many of your accounts as you want, and get a clear, visual glimpse of your current financial picture.
YNAB, aka You Need A Budget. This is a great app for people looking to intentionally pay down debt or build up savings! It’s free for 34 days, which is good, because you may need to budget that long to save up for the $84 a year subscription. This app has a few more bells and whistles than Mint does and is meant for the focused budgeter who wants to plan where each and every dollar of their paycheck will go.
Acorns. Feel like you have budgeting down, but wish you could save or invest a little more? Acorns is here to help with that. This app takes spare change from your transactions and invests it in the stock market for a small monthly fee. If you struggle with actually putting away money for the future, this app can take the mental work out of it in a way you probably won’t even notice.
At the end of the day, personal finance is personal and always will be. Without knowing every detail of your situation, no one can tell you what is “right” or “wrong” to do with your money, but these are some great tips and resources to help you manage your money in a way that feels right to you!
