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5 Surprising Benefits of Tracking Your Spending

5 Surprising Benefits of Tracking Your Spending

Quick: How much money did you make last month? Too easy? Okay…how much money did you spend last month, and on what, exactly?

If you’re struggling to answer that one, you’re in good company. According to a poll from Gallup, two-thirds of Americans do not track their monthly spending. This blind spot may seem benign, but it’s often to blame for problems like snowballing credit-card debt, family fights, daily stress, and anxiety about the future.

The solution might be easier than you think: taking a few minutes each day to monitor and think about where your money is going can improve your life in dramatic ways. Tiller Money recently announced the results of a survey that asked 100 people, all spreadsheet users, about what they’ve gained from tracking their finances for at least 3 months.

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1. 93% Agree – You’ll Have Better Insight into Your Spending Habits

Most of us have only a vague idea of where our money goes each month. But look around: Are you surrounded by overflowing closets, fitness devices gathering dust, and cosmetics spilling out of bathroom drawers? These are a result of your spending decisions.

In an era of one-click purchasing and automatic billing, it’s easier than ever to spend mindlessly: while we’re at work, eating dinner, sitting on the couch, or even sleeping. But when you pay attention to each and every outlay of cash – just a few minutes a day is all it takes – you’ll see trends, identify waste, and notice expenses that are misaligned with your values and priorities. Before long, you’ll find yourself questioning your spending decisions before you hand over your credit card.

2. 80% Agree – You’ll Have a Better Relationship with Your Spouse or Partner

Money is the leading cause of relationship stress, according to a survey by SunTrust Bank. Not kids, affairs, or household chores – money! It’s only natural that you and your partner will have different approaches to spending and saving, but this doesn’t mean finances have to cause friction. Eliminating this particular stressor demands open, transparent communication about money. Take the time to sit down with your partner and agree on savings goals. Then look back on your spending decisions together, without judgement or recrimination. This will force you to have a healthy discourse about your respective priorities and make compromises as a team.

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3. 79% Agree – You’ll Spend Less Impulsively

We all spend impulsively from time to time — that’s not a bad thing. But making frequent or large or purchases on impulse — “What a cute car! I’ll take it!” — can ruin you. So before you make each purchase, pause and ask: “Did I come to the mall looking for a new pair of boots or did they catch my eye as I was walking past the store?” “Do I really think an Apple iWatch will make me more productive, or am I just trying to keep up with my friends?”

You may be spending more impulsively than you realize — and using money that was earmarked for more important uses. No one, regardless of wealth, likes to waste money! Tracking your purchases will force you to acknowledge unconscious spending, and with time, you’ll find yourself naturally spending in ways that don’t leave you feeling guilty later.

4. 81% Agree – You’ll Be More Confident About Reaching Your Financial Goals

We all have goals for the future. Perhaps yours is to retire early, travel around Europe, or take a year off to write a book. But while our goals often depend on money, few of us know exactly how much we’ll need or how much we have to save each month to get there.

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People who track their spending know how much they’re earning, spending, and saving. So when they’re faced with a pay cut or unplanned medical expense, they know what levers to pull to keep saving at the right pace to achieve their goals.

5. 75% Agree – You’ll Feel Less Anxious About Money

Most of us avoid discussing or even thinking about money because it makes us uncomfortable. According to a survey by the American Psychological Association, the vast majority of Americans reported feeling stressed about money during the past month. We feel stressed about bills that are due and things we want to buy for ourselves or others that we can’t afford, and we feel anxious about our future financial security. But burying your head in the sand isn’t the answer. As Tiller’s survey shows, facing your financial fears head-on by owning up to and taking control of your spending is a proven way to reduce anxiety and stress.

If you’re among the majority of Americans who don’t have a process in place for keeping tabs on your cash flow, take a few minutes each day to adopt this powerful new habit. There are many, many tools out there that make it quick, easy, and yes – even fun. You can use a slick app with pre-built reports like Mint or YNAB, or create your own custom dashboard with Tiller, which lets you link your bank accounts to Google Sheets.

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Featured photo credit: alejandroescamilla.com via hd.unsplash.com

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Sharen Ross

Marketing Strategy Consultant

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Published on July 4, 2018

Top 10 Recommendations on Money Management Apps

Top 10 Recommendations on Money Management Apps

Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

The solution is simple, save more and spend less. But, we all know it’s easier said than done.

One problem is finding quality apps that save you time and money, and aren’t just hype.

Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

1. Personal Capital

    When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

    Here are some of its main features:

    • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
    • Discover hidden fees and how much they’re affecting your retirement plan
    • Wealth management for investors requiring a long-term strategy

    With Personal you’re free to track your expenses and net worth.

    Available for: iOS and Android

    2. Mint

      If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

      Here are some of its main features:

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      • Effortlessly track all your bills and balances in one dashboard
      • Categorized expenses to understand where you spend your money
      • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

      Feel at ease with managing your money by a reputable company that isn’t going anywhere.

      Available for: iOS and Android

      3. YNAB

        Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

        Here are some of its main features:

        • Easily sync all bank accounts in one place
        • Visually see your debt paying progress with eye-catching charts and notifications
        • Customized categories setting saving goals

        The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

        Available for: iOS and Android

        4. Wealthfront

          Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

          Here are some of its main features:

          • Variety of investment account options including IRA, Roth IRA, and more
          • Your portfolio composed of 7 different asset classes
          • Automatically rebalanced portfolio
          • Daily tax loss harvesting

          Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

          Available for: iOS and Android

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          5. Clarity Money

            If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

            Here are some of its main features:

            • Easily cancel subscriptions with one click
            • Synchronize bank accounts fast
            • Transfer money effortlessly between different accounts

            Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

            Available for: iOS and Android

            6. Acorns

              What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

              Here are some of its main features:

              • Automatic contribution option
              • Customized portfolio tailored to your needs
              • Low management fees ranging from $1-$2 per month

              Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

              Available for: iOS and Android

              7. Albert

                Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                Here are some of its main features:

                • Receive notifications for overpayments, hidden fees, and low balances
                • An Automatic budget that’s built around your spending and income
                • Easily track debt and set new financial goals

                While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                Available for: iOS

                8. Prism

                  Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                  Here are some of its main features:

                  • View all your account balances in one glance
                  • Bill due dates are automatically pulled and tracked
                  • Receive early reminders for upcoming bills

                  If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                  Available for: iOS, Android, Windows, Amazon

                  9. Mvelopes

                    Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                    Here are some of its main features:

                    • Connect unlimited bank accounts
                    • Real-time budgeting with auto transaction syncing
                    • Low monthly $4 fee or $40 annual

                    Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                    Available for: iOS and Android

                    10. Wallaby

                      Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                      Here are some of its main features:

                      • Automatic recommendations for the best credit card to use for each transaction
                      • A friendly user interface, displaying credit cards with their corresponding images
                      • Free to use

                      If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                      Available for: iOS and Android

                      Take control of your finances and experience financial freedom

                      Picture yourself staying on budget and saving more money than you’d ever imagined.

                      It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                      You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                      Featured photo credit: Pexels via pexels.com

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