The pros and cons of budgeting apps.

There are some people who prefer to do things the old-fashioned way, from writing their grocery list on a piece of paper, to having a little book with everyone’s phone numbers written down. However, there are many who take advantage of every technological advancement that fits their lifestyle, from using notes on their phone to make a grocery list, storing all contact information in their phones, and more recently, taking advantage of apps that are intended to make everyday life easier. As people find themselves in a position to put together a financial plan, where to create a budget is a starting point. Again, some people may prefer the simple budgeting method, where they create a budget written out on paper, while others may prefer to find a budgeting app that helps them track their income, expenses, and savings all in one place, and able to have on hand at all times. As budgeting apps are becoming more popular, and as people are deciding what budgeting method is right for them, there are some pros and cons to take into consideration. 

Pros:
- Convenience – Budgeting apps have the capabilities to automatically track your income and expenses by linking your bank accounts and credit cards. This saves you from having to remember every transaction to jot down later.
- Improved financial awareness – Because you are getting spending and saving updates in real time, you are constantly being reminded of the budget you are trying to stick within, and the goals you are trying to reach. 
- Customizable – Many budgeting apps let you set multiple goals that you can update whenever needed. Seeing progress you are making towards those goals can also be a motivator to stay on track. 
- Better budget management – To be able to better manage your budget and stay on track, you are able to set spending limits for different categories and receive alerts when you’re nearing your limit. If you’re financial situation happens to change, your budget can be easily adjusted. 
- Automated Savings – Some budgeting apps that are connected to your bank account have the capabilities to set up automatic transfers to your savings account, or round-up savings (round up purchases to the nearest dollar and saving the difference).
- Educational resources – Many of the budgeting apps provide articles and tips to help you improve your financial knowledge. Some goes as far as having forums or communities for advice and shared experiences. 
- Security – Reputable apps use encryption and secure connections to protect your financial data. Many have additional security measures such as two-factor authentication which help safeguard your personal information. 

If a budgeting app seems like a budgeting method you would like to utilize, there are a few top-rated budgeting apps to consider such as Money Manager Expense & Budget, YNAB, EasyBudget, MyMoney and more. With a simple search in your app store, you can easily find these and many more. The reviews will give you insights into what people find works great, and some areas where the app may be lacking. It may take some time, and trial and error, but with a little hunting, you can find an app that works best for you. 

Cons:
- Privacy concerns – While there are security features to ensure secure connections, some might be uncomfortable sharing financial information with third parties for marketing or other purposes. Although the apps use encryption, there is still always a risk of a data breach.
- Cost – While it might be free to download the app, you may only get a free trial, or some might charge a subscription fee for premium features. 
- Learning curve – Many of the budgeting apps come with numerous features, some may be applicable while other’s may be of no use, but understanding all the features and effectively using the app may require some time and effort. 
- Over reliance on technology – Taking advantage of using budgeting apps and avoiding managing your finances manually can cause issues if the app becomes unavailable, or the app experiences bugs, glitches, or connectivity issues that can disrupt your financial management.
- Limited customization – Depending on the budgeting app you have chose, you may find some of the apps do not offer the flexibility to fully customize your budget categories or financial goals. 

Not all budgeting apps are suitable for every financial situation. While the apps can offer numerous benefits, they can also have obvious drawbacks. If you think you would like to transition from simple budgeting to a budgeting app, it’s important that you take the time to read the reviews, features, associated potential costs, and weigh the pros and cons to ensure it is right for you. 

If debt has made budgeting a daunting task, there are options to tackle your debt.

If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options. Every financial situation is unique and viable options can differ from person to person. A conversation free of judgment is the first step to determine options for debt that make sense to you. For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.