Money remains one of the persistent stressors in many people’s lives. How common is money stress? It’s a major personal stressor for around 60 percent of Americans.
Some of that stress likely stems from recent uncertainties about jobs and income, courtesy of the pandemic. Yet, that’s not the only or even primary cause.
Many people worry about money because they think they aren’t saving enough for retirement, can’t cover their bills, or just have no idea about their financial health. If this sounds like you, then you could likely benefit from some financial planning.
Plus, technology is here to help. Keep reading for four practical reasons to use a financial planning app.
1. Budgeting
Most people don’t relish the thought of budgeting. Maybe you see it as a leash that will deny you things you love. Maybe you just hate the idea of dealing with all those numbers.
In the end, a budget shouldn’t feel like a noose or a leash. It should help you understand where your money goes and give you some control over your financial health. A budgeting app can provide you with budget planning help, budgeting ideas, and handle most of those pesky calculations.
Are you planning to settle in Australia? Here’s Top 5 reasons why you should!
2. Informed Decision-Making
When you don’t use a budget, budgeting app, or financial planning app, you do all your spending in a knowledge vacuum. You never know what any purchase means in terms of your financial health.
No, the occasional high-priced coffee or takeout dinner isn’t a disaster, but how often do you buy them? If you spend $50 a month on coffees or takeout, it’s very different from spending $350 a month on those things. It’s a difference of about $3600, which can get you over halfway to maxing out your IRA contributions.
8 Practical Tips for Simple Yet Memorable Party Planning
3. Goal Setting
A financial planning app also helps you set and meet goals. For example, maxing out your IRA contributions or setting aside money for your kids’ college educations. That doesn’t mean all your goals must relate to long-term responsibilities.
You can also use planning apps for shorter-term goals built around personal enjoyment, like a yearly vacation or buying a new camera.
3 Financial Planning Tips for a Startup
4. Building a Side Hustle
Maybe you started a side hustle to help relieve some of your financial stress, and you want it to grow. Businesses need financial planning just like you do with your personal finances. You can find business financial planning apps, such as Oracle Netsuite, to provide similar benefits for your side hustle.
Financial Advice for Retirement Planning – Secure Your Golden Years
Financial Planning and You
When you’re young, it’s easy to overlook or ignore financial planning. You assume that you’ll have time for that later. As you get older, though, the need for financial planning becomes increasingly obvious as you want to buy a house, send kids to college, or plan your retirement.
A financial planning app helps you get started by developing a budget. This gives you both knowledge about and a level of control over your finance.
Looking for more personal finance information? Check out the posts over in our Finance section for more tips and ideas.
Read Also: Get Your Books In Check: 5 Bookkeeping Tips for Construction Contractors
