Nobody needs a lecture in need to limit spending to what is being earned. In other words, balancing expenses is not just thrifty but also the most desired thing to do. Unless a budget is balanced correctly, the chances of the person getting into debt increases dramatically. We shall now look at the five most essential steps to keeping track of expenses. Also, we will find out what are the best expense tracker apps.
Steps for keeping track of monthly expenses of tracking apps
Tracking your expenses regularly can have a lot of benefits. It gives the individual a handle on how money is being spent. It also gets the person to have a surplus at the end of the month. For many people, tracking expenses regularly could mean having an account taken every day, whereas it could track the cost weekly for others. But it is generally accepted that you must track the expenses at least once a month for the best benefits.
Checking account statements Accounts must be reviewed and tallied every month. It includes all the checking accounts as well as the credit cards that the person owns. An excellent close look would reveal where the money is coming from and where the money is being spent. It would be best to get a sense of where the money is being spent. You should also know where the income comes from.
Create categories of best expense tracking apps
It is an important step in keeping track of expenses. That is to create expense heads. It would reveal at the broader level how money is being spent. When speaking of monthly expense statements, it becomes superfluous to have it micromanaged, and the more comprehensive picture would often be more convenient.
There are often the fixed spending heads and the variable ones. It is really not easy to cut down on the fixed spending, but you can achieve a fair amount of flexibility on the variable. They are also less likely to change from month to month and are usually consisting of rent or mortgages, insurance, utilities, and debt repayments.
Using budgeting tracker apps
Many budgeting apps allow monitoring of how much is spent while on the go. It will enable the user to allocate certain sums to specific activities and keep spending on a check as far as possible. There is little doubt that these apps work if a habit is made to logging expenses and sticking to a budget.
Using a budgeting tracker app could often cost a sum of money. There are always the free to use platforms, but they tend to be less of a utility than otherwise.
Explore different tracker apps
There is nothing that says a customer must stick to the first app that he tries out or to the most expensive one either. It would be worthwhile to explore the different apps available on the market and find the most suited one among them. Some apps give a feel of the traditional spreadsheets, whereas some modeled on the envelope type of budgeting and so on. It is for the customer to choose the most suitable one for use and the long term.
Be flexible with tracker apps
As people get to using an expense tracking app, it is always important to remain flexible. If you can minimize a spending head, then it must be done and at the earliest too. If it is possible to lower the budget spent like the mortgage or the car loan, it will improve the person’s financial health.
You can see that you cannot have financial prudence in one go, and it takes a concerted effort to make financial planning a part of your daily routine.
But the result is that people practicing frugal spending tend to have the extra cushion and financial freedom.
Best expense tracker apps
The first expense trackers came into the market in the 1980s, and the field has come a long way since. Today, it is possible to have a range of activities and actions all rolled into the expense tracker software and more than just the convenience alone. It is possible to save time and reduce expenses. Let’s check some of the best expense tracker apps.
If someone wants to keep track of expenses and maintain a balance with the help of charts and better graphs, then Personal Capital could be just the one app for you. The platform is one of the most proactive investment managers that could be had for hire. There is also on offer a free dashboard that offers more than just simple bookkeeping as well.
Talking of expenses, Personal Capital tracks and keeps an account of every transaction on the credit and debit card. It categorizes the spending, and it is possible to link up several cards at the same time. It is possible to have a monthly cash flow chart and the expenses chart at any time.
Those who would suit this application are the folks that tend to mix up their finance with their business accounts. It helps with payroll management and leaves quite a bit of power in the expense manager’s hands. There is enough flexibility on hand to offer just more than the basic accounting needs, which helps those seeking something more than mere bookkeeping.
Quickbooks comes in different versions that depend on the configuration of the computer. It also depends on users’ use and the package that the person is subscribed to.
Clarity Money comes with the convenience of providing a web-based platform and a mobile app. The easy to navigate interface makes this application one of the most used ones for expense tracker software.
A range of activities that includes cancellation of credit card subscription, tracking of credit card score, and even having a savings goal are all to be done on the application.
The tracker software does more than just provide the user with a budget, it would have affiliate programs with many partners that offer many conveniences and features.
When it comes to using high technology, then Wally does take the cake.
With elements of Artificial Intelligence and other trendy pieces of technology, it tries to be predictive with the expense tracking. People can share budgets among a family and other groups and thus is social in its approach. An interactive feedback system ensures that the user is kept informed of all his spending habits as it happens.
As Wally does not have access to bank accounts, it is an added security against cyber-crime. The product is graphics-rich, which is something that the Millennials would love to use. All in all, a trendy application that can do more than just keep tabs on the expenses.
If there were a contest among the expense tracker apps, then the clear winner would probably be Mint from Intuit. It supports a wide range of bankers and financial institutions, choosing another means of keeping track all the more redundant. With the app, you can get help with expense tracking, budgeting, bills, and credit monitoring.
One of the reasons for the huge fan following with Mint is the sheer simplicity of the user interface that one can use. Since the software comes compatible with Android and iOS phones, it adds to the program’s versatility.
You Need A Budget
As it is popularly abbreviated, you Need A Budget or YNAB can be just the expense tracker app that most home users are looking for. A host of features make this a one of a kind application that can be put to use by practically everyone. Each penny earned is given use from the time of the earning. If people need to save up on cash, they need to allocate money directly for the purpose.
The latest updates allow for the linking and import of bank accounts so that you can tally expenses. It is done automatically for the most parts. YNAB could be just the app for those wanting to learn as they earn. A mentoring system ensures that people are coached to managing their money as best as possible.
Mvelopes uses a series of digital envelopes to keep track of all the incomes and expenditures. It applies to have envelopes to denote the spending heads, and money is budgeted for each use by putting it in the respective envelopes. As the envelopes get drained as money gets used up, a warning is sounded to let the user know that the spending limits are nearing exhaustion.
The straightforward approach has been taken from the age-old custom of keeping money in separate envelopes for the various spending. Despite the somewhat rustic principles, Mvelopes can be just as powerful to have around for home budgeting needs.
Those were some of the best expense tracker apps.