Money Saving Apps Can Help You Save

money saving apps
Apps can be used as money saving apps when downloaded from banks and investment accounts.

The internet is a wonderful thing, and with the explosion of money saving apps for smartphones and tablets you can save even faster.   That is right, you heard me correctly.  By reading below, you’ll get exposure to a few apps that can help you to boost your savings, and do it using an app.  Let’s not waste any time and get straight to the Apps:

1.)  Digit

Digit is a money saving apps that helps you by transferring money automatically into a FDIC savings account.  But the interesting part is how Digit goes about automatically making these saving adjustments.  From their website:

Digit analyzes your spending and automatically saves the perfect amount every day, so that you don’t have to think about it.

Pretty cool huh?  We’ll it is a great service that can help the forgetful saver.  All of us get busy from time to time, and with an app like this we’ll be able to stay ahead of our saving goals.  The cost for this great service is $2.99 per month so it is not free.  They also claim to have saved over 1 Billion dollars for their customers, so they are tested and not new at this.

2.)   Your Investment Account App

If you have an investment portfolio set up already, then you are off on the right track to saving more money.  Just the fact that you have an account is a great start, so feel good about that.  But there are always more small tricks that we can perform to save without really thinking about saving.  One great trick is to setup an automatic transfer from your money saving app into your investment account.  I have this setup from my banking app into my investment account.  It works seamlessly, it is great, and it is easy.

Here is how it works.

  1. You must first link your bank account to your investment account.  You do this by providing a routing number, your bank account number, and also the name of the institution.
  2. Review your budget to see what you can easily and affordably save on a monthly basis.  Based on your budget you’ll choose an amount that you can comfortably miss each month.  When starting out be sure to not choose an amount that is difficult to handle, instead choose an amount that is both meaningful and easily obtainable.  Remember, the goal here is to save money.
  3. Choose how often to make the automatic contribution.   Most budgets are monthly, and this typically corresponds to how most people think about their finances.  And in line with this, you will probably want to setup a monthly automatic contribution to your account.
  4. Review, revise, Update.  You should over time revisit your setup withdrawals, and make adjustments upward(not downward if you can avoid it.)  With this said, you don’t want to overstretch in either direction with this, but you do want to push yourself somewhat.  Saving is important, so make it a priority.

Your Savings Account or Checking Account App

This process is really similar to the investment account auto savings, with some slight differences.  In general the process is similar in that our goal here is to automate the savings, and get that money transferred and out of our sight before we think to spend it…right?  So here is how it works.

  1. Use a second savings/checking account : You will need to have a second account that is used for this purpose so make sure you have one setup.  With this second account, be sure that you don’t have checks for it, not withdrawal ATM card, only a deposit ATM card.  Be sure to request these things because this money, once transferred in needs to be out of sight and out of mind.
  2. Review your Budget :  As we all know this money is just in a different account at our bank so we really do have quick access to the money if needed.  Once you determine an amount to start with, go for it.  Don’t delay.  You will find over time that you don’t even think about the lost money.
  3. Up the Savings Amount :  Once you become comfortable with what you are savings, and you have totally forgot that you have setup to save this money, and you don’t see your savings account dropping, they boost the amount of your transfer into the savings account.  VERY IMPORTANT, make sure that you aren’t just switching your spending into another bucket.  This means that if you have decided to save $100 per month into a savings account, that you aren’t increasing your spending in another area, this is very important.  So, you still want to be paying off your credit card each month, not increasing your debts in buying a new car, or making other poor financial decisions.  The goal here is to save, and limit spending on items that you maybe can do without with the goal of boosting your savings.
  4. Revise & Review:  Once you have been at this for a while, make sure that you review and revise what is going on.  Increase or decrease the periodic savings amount as appropriate.

What if you need the Money Quickly?

Don’t worry, if you feel that you may need to have access to the money on short notice, because it will be easily accessible.  Be sure to double check with your counter party, or the bank you use, but with my Investment Account App I can without hassle withdrawal money back into my checking account just as easily as it was to take it out.

Tax Issues – And Taxable Accounts

In general, you must understand which type of account you will by moving the money from and where it will go to.  You will not want to transfer the money into a non-taxable account unless you plan on leaving the money there until retirement.  This is because if you are forced to pull the money out, you may be subject to taxes, and penalties for early withdrawal.  So, think about where you will be moving the money to and what are you saving this money for, and if this money will serve as backup for a rainy day fund.

Savings is a Crucial Part of Increasing your Wealth

In order to get ahead in life and become more wealthy, you need to make sure that you have a path to earning money and a way to save that money.  With this page, you been given a few great ways to think about saving money online using Apps to get the process started.  You can also implement these saving strategies over many years and over your lifetime.

Check with an Adviser or Accountant

Every person has a different situation, and almost no two situations will be the same.  Always check with your tax adviser, accountant, and investment professional before adjusting your finances.  Best of luck and please let us know down below in the comments if you have any suggestions for expanding our list of helpful money saving apps.