Robin Dinesh

Market Analyst

September 27 2018

How Budget Management Apps are Improving Personal Finance Planning

Managing your personal budget and spending habits is a great idea. But the process can be tedious, and worrying, especially if you’re managing the budget of a large household. Budgeting on a consistent basis can be difficult. However, thanks to apps like Mint, Clarity Money, and Monefy, it appears that tech start-ups are changing the way individuals manage their money.
Gone are the days of paper and pen budgeting, it seems. The mental labour of having to compare your income to your spending, painstakingly recording (and perhaps regretting) usual and unexpected expenses has been swept away by the force of budget planning and management apps. Instead, we now have access to apps with a plethora of capabilities: everything from basic income/expenditure breakdowns, to features that encourage habitual saving and generation of predictions for your next cycle of spending. Here’s why we think money management apps could be a great tool for any individual looking to take control of their finances.
Plan Accurately: A Smaller Margin for Human Error
Let’s face it: people make mistakes. The invention of calculators saved humans a lot of trouble when it came to mental math. Digital budget planning tools have taken this a step further, combining the calculating powers of machines with their ability to categorize and analyse information. For example, instead of manually adding different expenses from transportation costs to utilities, an application like Mint can do all of the work for you, with less potential for human error on your part. This means you can be more confident in your budget’s accuracy and effectiveness.
Financial planning and budgeting often extends beyond just day-to-day purchases. Long-term budgeting must consider credit commitments like credit-cards, loans and mortgages. This is one area where human error could be disastrous for your personal finance history. That’s why at Sqirl, we devised a system which allows users to accurately track their credit history and financial profile through the FINPASS. In an age where many individuals have more accounts and credit products than they can count, the FINPASS makes it easier to navigate the complexities of long-term financial planning and credit management accurately and effectively. We think managing your credit history should be simple.
Unlike basic budget planning tools, which offer a broad view of a user’s personal finances, the FINPASS allows the user to focus specifically on their relationship with credit, by creating a one-stop access point for all their credit information. Instead of manually keeping track of different credit products, customers can view everything from their credit score to the kinds of loan products they are eligible for, making the FINPASS a priceless tool for ensuring the most accurate portrait of a user’s credit profile.
Plan Effectively: Meet and Exceed Financial Goals
Another great benefit of digital financial planning tools is the ability to set and meet personal finance goals. With a basic pen and paper budget system, it can be hard to track expenses until it’s too late and the damage is already done. But nowadays, there are budgeting tools in place that let you know what you can and can’t afford before you’ve exceeded your budget. Take for example, Cleo, and AI based virtual assistant app that answers day to day spending questions based on your personal budget. This is such an innovative tool that exemplifies how personal finance apps can allow you to actively monitor and work towards progress on financial goals. These apps even encourage weekly saving quotas and makes the process of budgeting less about expensive hindsight, and more about proactive planning.
Here at Sqirl, we think the goal-oriented approach to finance is a productive one to have, especially when it comes to managing credit commitments. That’s why the FINPASS gives you a comprehensive portrait of what your credit profile looks like. This means you can monitor your credit score, credit products and commitments in real time, and base your goal-setting and progress on this information. Every customer has different goals, and making informed decisions about credit products based on your unique FINPASS profile can help you improve and maintain your financial health, in a way that is right for you.
Plan Completely: Connect Across Platforms for a Holistic Portrait of your Finances
The rise of digital financial planning tools has also made it much easier to keep track of expenses across a broad range of both virtual and physical spending platforms. Everything from Amazon and Netflix, to your purchase of gas can be tracked through personal finance planning apps. When it comes to finance, nobody likes surprises. With many apps, you can view exactly how and where you spend your money, and adjust your habits accordingly, all from glancing at a single platform. This has made the process of monitoring your expenses so much easier. A great example of this is Clarity Money’s mobile app, which allows users to view all subscriptions in their name and cancel subscriptions they no longer use from within the app. Innovations like these have made it much easier to keep track of spending which for many consumers is spread out across a broad range of vendors and platforms.
Here at Sqirl, we’ve made it possible to do the same with credit products. Consistently keeping track of all your credit cards, loans and commitments can be a daunting process, especially when the information is spread out across many channels. With the FINPASS, we make it possible to consolidate the entirety of your credit history and your credit products within one streamlined platform. Not only does this make it easier for you to monitor the status of your loans and financial health (without the hassle of navigating many channels of information), it also make the process of applying for new credit products much easier. Besides giving the user themselves a holistic portrait of their finances and credit history, the FINPASS also allows the user to easily pass on this consolidated information to banks. The goal of financial planning is to reduce uncertainty. The FINPASS does just that for its users. Instead of awaiting approval from banks when applying for credit products, the FINPASS allows users to plan ahead, based on knowledge of their own financial profile, and more confidently apply for loans, mortgages and other credit products.
We think the growing popularity of personal finance planning apps is great for consumers. It means they can more accurately, effectively and thoroughly manage their budgets. The FINPASS similarly fits into monitoring and managing personal finances, giving you a big picture outlook on your credit profile, making it easier to ensure your overall financial health and wellbeing.
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