What are budgeting apps and how to use them?

We’ve done a bit of research and can try to help you make the decision of which to choose. Below is a list of budgeting apps and their niches:

Chip

Voted as the best finance app in 2022, this app is suited for a broad range of people. Powered by AI, it calculates how much money you can spend and also save. It removes small amounts of money into a savings account from your current account periodically to help you save.

Honeydue

For people with shared bank accounts, Honeydue allows you to see one another’s bank accounts, loans and transactions with the freedom of choosing what you allow the other person to see. The app also has a built-in texting feature where you can discuss your expenses.

Emma

“Sign up for a FREE one-week trial”… we all know how this story goes. You end up paying for the subscription along with all the others, it all adds up. Emma can help remove all that mess, a powerful app that helps cut down on wasteful spending and also allows for commission-free stock trading on the companies you love.

Mydus

The go to tool to manage your Cost of Living, Mydus can automatically categorise your finances into the 50/30/20 rule (see below), and in doing so help you end up with more at the end of the month, in term more at retirement.

Cleo

Has the world’s first AI assistant dedicated to personal finance, you can ask questions at any time and learn about your finances in a stress-free, easy way.

Snoop

Receive notices about upcoming bills, suggestions on where you could be saving money and track spending across multiple accounts.

They all have their unique features but you have to find the right app for you. Here’s a few things to consider when picking a budgeting app:

• Ease of syncing with bank accounts
• The way it categorises your expenses- visual charts etc
• Your financial goals
• Fees
• Security and privacy
• Ease of access
• Check customer reviews

If you decide on using a budgeting app, or just decide to wing it, these tips on how to best use a budgeting app will be of use regardless:

• 50/30/20 rule: see the section below for more information.
• Understand your income: so you can set yourself goals on how much is a fair amount to save and what for.
• Be mindful when purchasing things
• Separate needs from wants
• Consistency and patience- it is hard to cut down on spending and it won’t come easily, but will get better with time
• Familiarise yourself with the software – some apps have very cool features or features that are hard to wrap your head around.

The 50/30/20 rule is a simple rule that is helpful when managing your spending. The table below explains each section.

% of Salary	Name	Description/Examples
50	Needs	rent, car payments, groceries, insurance, and health care
30	Wants	things that are not absolutely essential such as gym instead of at-home workouts, eating out, going to the cinema, expensive clothes
20	Savings	this includes investments and creating emergency funds

The pros of using this rule are that it is useful for long-term savings and retirement, it can be simplified by setting up automatic payments and it isn’t too restrictive, so it is sustainable.

Mydus integrates this rule into its core niche of Cost of Living, it automatically breaks a users’ spending into Committed spending, Everyday spending, and Savings, which can be aligned with the 50/30/20 rule (Needs, Wants, and Savings) respectively. If you’re looking to integrate this approach into your life, Mydus is a great place to start, and it just takes a few minutes to sign up.