Saving money using Mobile apps with added Benefits
“Worried about taking a financial step in your life? Are you worried about finding the right way to save money and make great returns to travel, retirement, and your future? The article conveys the same. Furthermore, a comparison has been made with a different mobile savings account, and traditional savings account offered by financial institutions.”
Why Should You Save Money?
We’ve grown up from adding coins in the piggy bank to depositing greenbacks in the bank. Warren Buffett said that the money you save is the earnings of the future. Many might contradict this, as they believe in living at the moment. While this is true, what harm does it do by reducing miscellaneous and useless expenses and saving them for the future? Imagine working ten years straight in a co-operative sector and then getting fired, you are cut out of your salary, and you are left with a few dimes and nickels here and there.
At this moment, the only thing that will be your savior is your SAVINGS. There are many instances where this is true. One needs to understand that things aren’t permanent in life. To avoid falling into trouble, build up your foundation to avoid spreading your hands when in need of something. Be independent and save that money, because it is the tower on which you will stand one day. Thus, the three fundamental pillars for spending money are wealth building, future purchases, and funds for emergencies.
Being a hardcore earner has its drawbacks; you might spend a lot on shopping and fancy dinners, investing in recreational activities, and frequent foreign trips. It is hard when someone tells you to stop spending and start saving because you have developed a habit, and to avoid this habit, one needs to take a brave step forward. We are fortunate to live in the 21st century, as you can start saving Money hassle-free and get out of your bad habit of savings. Saving money can be quickly done with the advancements in net banking technologies like PayPal, google play, and many more. Applications have been developed to make things easier and offer a great deal for keeping your saved money safe and ready for future withdrawal with interest.
Taking A Step Forward
Signing up on these savings and investing apps might be the beginning of you being a millionaire. The first and primary step for saving money is understanding your budget and evaluating how much of it you spend on useless stuff. Identify essential costs, like money, tuition fees for your child (if you have one), rent, essential utility bills, and keep aside some change for personal use. After doing this, you identify the amount of spare cash you have each month and then take the next step. Here the next step would be keeping a target. Here the target could be saving money for a wedding, a foreign trip, or a fancy car; it could be anything, but you need to set the target. Your final step would be creating an account and beginning your saving money mission with the following apps’ help. Here is the list of shortlisted mobile apps making savings easier at your fingertips;
ACORN works on an exciting concept, which makes life easier and saving easy. It uses the difference of change money and invests it in recommended companies diversifying your portfolio. For instance, when you purchase a Starbucks coffee for 6.75$, the 0.25 cents will automatically get debited in your ACORN account. Therefore, you need not worry about losing your nickel here and there, and rounding off figures, making the amount look good on the swipe machine. There are three types of accounts that you can create depending on your needs. The cheapest maintenance fees start with 1$/month, which is the basic plan, then comes the 3$/month plan, followed by the Family plan costing 5$/month. The Personal Plan and the Family Plan are similar; the only difference is that you can open accounts in your children’s name in the 5$ Family plan if you are a family person. The 1$ program is the best for beginner investors and shopaholics, as the change money is automatically debited. If you want to commit and take the next step, you should try the 3$ Personal plan, where you would get money advice and retirement benefits as an additive feature along with a meta credit card.
SavedPlus works on an exciting idea. The target users are individuals looking for short term targets like dream vacations, creating an emergency fund, or investing in the latest technology. An account in SavedPlus can be created easily by a single tap and linking your bank account. The idea is that for every purchase you make, say, for instance, purchase air pods, a percentage (say 10%) of the money spent will be deduced and put into your savings account. Thus, you can pay quickly without worrying about savings, as spending will be directly proportional to your savings. The more you spend, the more you save.
If you are lazy to evaluate your funds, then DIGIT is for you. DIGIT uses an algorithm that predicts your monthly savings based on cash inflow, monthly spending, and more. An added benefit for creating an account with Digit is that it uses FDIC insurance with an upper limit of 250,000$. There isn’t a mandate to have a minimum balance as well. There is also no monthly withdrawal limit and has partnered with over 2,500 banks. The app charges a maintenance fee of 5$/month and authorizes a penalty of 99 cents on instant withdrawals but can be avoided by delaying a day or two. A drawback with Digit is that since it uses an algorithm, it demands personal information from the user and utilizes a third-party application. Average customers of Digits make around 2100$ every year; the amount is subjected by subtraction of the monthly subscription of 5$.
Chime had been awarded as the best mobile banking app. Chime can be used to wire money, bill payments, and deposits. The best feature about Chime is that there are no hidden fees associated with the features offered. Checking your bank balance is often tiring, Chime does well in this aspect as well. Just like you get Instagram notifications, Chime keeps you updated about the deposits and spending via notifications straight on your mobile device. Features offered by Chime makes banking easy. You can disable your Debit Card by a swipe on your device.
Transaction alerts are also sent, adding to the security. To avoid depositing physical checks in the bank, Chime has introduced a feature where you can click the picture of the check and upload it on your app. This reduces long queues and deposit slips, saving your time. Transaction fees are null. Chime also has a feature for locating ATMs nearby for cash withdrawals avoiding the fuss in need of emergency. Apple Pay, Google Pay, and Samsung Pay can be easily used. High-yield savings account on Chime offers a 0.5% annual percentage yield. You can make a recurring deposit, which directly gets deducted from your salary, and rounds off the pay system as seen with Acorn.
Stash offers a beginners account at 1$ and Stash Growth account at 3$. The benefits afforded by both type of funds is generous. There is 1K$ life insurance by Avibra in the 1$ plan and tax benefits and best retirement plans. Stash+ account at 9$ per month includes added benefits like 10k$ insurance and Stock-back card. Don’t stash your savings in the attic, but instead use the stash app.
Other mobile apps like Stash and Empower finance will help you have a handsome sum of money. The only thing left now is to start saving. Every dime counts!
Going the traditional way and investing in high yield savings accounts in financial institutions.
The federal government issued a federal reserve emergency cut to stimulate the frozen economy during the pandemic in march 2020. Due to this, many financial institutions made a significant change in their APY. NerdWallet was able to shortlist top banks offering above-average rates. Financial institutions like American Express, Ally, Marcus by Goldman Sachs, Alliant offered an average APY of 0.52%. Alliant requires a minimum balance of 100$ while the others don’t. Tab bank and Live Oak bank offers a higher APY at 0.65% and 0.6% with zero minimum balance
Savings accounts are safer and secure. The account is secured by Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), making it safe to invest with guaranteed interest rather than investment accounts.
Saving now is a guaranteed way to be a millionaire in the future. Not being able to save money is just an excuse; take the brave step ahead and dissolve your bad habit of spending. Make the right choice and keep saving, for what comes next is a future with fortune.