The need to save money has been emphasized time and time again — whether it is for financial independence, achieving certain goals, or emergency preparedness. And in the middle of today’s current health crisis, more and more people are heeding the call.
According to the U.S. Bureau of Economic Analysis, Americans’ personal saving rates, or the percentage of people’s income left after taxes and personal expenses, increased to 27.6% in March from 13.9% in February 2021, up from 13.5% in December. This can be partly attributed to the pandemic cutting down daily consumption. And while we can hope that these good habits stick in the long run, we can all use a little nudge in the right direction to remain consistent. Luckily, there are apps that can guide novice savers.
If you are having trouble determining how much money you can afford to save every month, you can lean on Digit to do the work for you. This app acts as an algorithmic financial assistant and automates your savings based on your bank account, monthly income, and spending habits. After it analyzes your transactions and sets a goal for you, it will automatically transfer this amount to a FDIC-insured Digit savings account. While this process is automated, you still have the option to press pause or check your savings at any time.
If you enjoy online shopping, this money-saving app is for you! Honey works as a browser extension that automatically searches for and applies coupons and discount codes as you shop at all applicable websites. It also notifies you of discounts on items you saved to a personal wishlist. This can help you cut down on the time and effort you would have used in scouring for vouchers, and enables you to treat yourself while not going over the limit you set.
3. Petal Card
Some apps connect directly to your credit card to let you understand your financial habits and your credit score even better — and the Petal App lets you do just that. The Petal Card app offers an Insights feature, which shows you exactly how much you are spending, comparing this data with your set budget and providing advice on how you can boost your credit score. This commitment towards transparency is what makes Petal special, as it allows you to make wiser financial decisions based on real data and does away with often confusing credit scoring companies. This can help you plan out your financial future in the long-term, as good credit can help you get better interest rates and discounts on financial products down the road.
A 2019 Bankrate report showed that most Americans fail to save because they have too many mismanaged expenses. This is an issue that Chime, a fully featured mobile banking app, aims to address. Once you sign up for an account, you will receive a debit card, a checking account, and an optional savings account. These features will help you manage your money and prioritize your purchases. The app gives you the option to automatically deduct 10% of your paycheck and deposit it in your savings account. Moreover, every time you make a transaction with your Chime debit card, it will automatically round it up and then transfer the change into your savings account.
Saving money has always been a struggle. But as we are now making small strides towards improvement, we have to exert more effort into keeping it a consistent priority. Here at Tricksndtips, we believe that apps should be handy companions as we strive for financial wellness.