I'm a big fan of budgeting and tracking my finances, and it works well for me. So, you better start putting aside some emergency fund to help you get through any unexpected financial crises. It's also worth noting that budgeting helps you anticipate any future fund shortages and warn you ahead of time. Such hidden fees might not sound like much at first glance however, they can add up really quickly.
That's not all, as having full control over your financial accounts will help you avoid late fees and easily avoidable interests. We've already touched on how tracking your spendings can help you save more money. That's only one half of the story the other lies in compiling all your income channels and comparing the rate by which you're making and spending your money. Better Management of Cash FlowĬash flow management can be a bit tricky, especially if you have multiple credit card accounts with spendings dispersed across them. This way, you have a more comprehensive idea of your top spending categories and start to trim down the unnecessary expenditure. You also get a better understanding of your spending habits once you start to compile enough data over time.
By planning ahead, you'll know which money goes straight to your savings accounts and how much you can spend without hurting your monthly budget. Controlling Your Spendingsīalancing your income and expenses equation is key for better money management. Upon peaking at the bigger picture and seeing where the bulk of your money goes, you can cut on some short-term spendings, like for example, your daily donut on the way to work, to save this cash for a bigger investment down the line. In other words, through planning, you'll be more deliberate in the way you decide to spend or save your money. Taking Control of Your Financesīudgeting ensures you have full control over your money, instead of the other way around with your money stirring your hands.
Benefits of Budgeting and Tracking Moneyīudgeting is hard and boring. Without any further ado, let's dive deeper into some of the best budgeting apps and help you choose the best option that suits your lifestyle and needs. With our smartphones directly connecting us to our banks, credit cards, and even acting as a payment method through mobile NFC chips, budgeting apps can automatically pull all this data and organize it in an intuitive infographic interface that gives you the bigger picture of where your expenses are going. Remember the times when you realized you spent half your salary a couple of days from payroll day? Those days should only be in the past now, as you start using a budgeting app to keep track of your personal expenses.īudgeting is the process of planning your personal finances, so you can make the most out of your money and save for this one big thing that seems way beyond your lane for the time being.