Money Saving Phone Apps
Money saving phone apps are very popular these days. We spend a lot of money online via credit cards. Either shopping, movies, or making significantly bigger purchases. Most of us swipe shop online using our phones and our credit cards. But wouldn’t it be nice if we could save some money while we spend on our credit cards?
You may like: Money Saving Tips
There are several mobile apps designed to help you save money — and make saving a bit more interesting, to boot. Some of the most popular money saving apps include:
- Grocery iQ
- Amazon Local
- Millitary Cost Cutters
- Hotel Tonight
- Compare Bookings
- Campus Special
Money saving phone apps: How do savings apps work?
Also known as “microsavings platforms.” Savings apps pull small amounts of money from one account and transfer them to a savings or investment account. Additionally some apps draw these small amounts of money by rounding up transactions to the next dollar amount. Or by analyzing your spending habits to calculate a “safe” amount of money to move into savings.
The goal of automated savings apps is to make saving money simple, automatic, and mindless.
In reality, you should be paying yourselves first. Automated savings apps help you save money throughout the month. So you are essentially paying yourself as you go.
A common barrier to saving money is that many people think they need to make some giant monthly deposit. Which is intimidating if you’re trying to create a new habit. Rather than large deposits, automated savings apps break things down into easy to digest chunks of money. $0.75 here, $0.43 there, and so on. It’s like saving the spare change that’s in your couch.
Money saving phone apps: Where automated savings apps fall short
Not saving enough
I honestly think these apps have a lot of good in them. However, if you solely rely on automated savings apps for all of your savings, then you probably won’t be saving enough.
While I wouldn’t say this about Acorns (being that it’s an investment account). The other automated savings apps however are really best for working towards smaller savings goals. For instance a vacation. Although you could use these apps to boost other ways you save money; still, saving on a much smaller scale.
The fees might be high
When you look at automated savings apps, one of the things you’ll want to pay attention to are the fees. While many companies charge flat fees, these fees can be high for accounts with low balances. You’ll also want to look into any costs associated with transfers or withdrawals.
Overdraft charges are the worst
I’m happy to see that some of these automated savings apps have some overdraft protections. Because I would think twice about any app that didn’t have something like that in place. If you choose to go with an app like Digit, keep a close eye on your linked account. Especially in times when you are spending more.
Mindless is cool, but being proactive is how you’ll really grow your savings
At their core, money savings apps are showing you that it is possible for anyone to save money. By demonstrating that every penny counts. Eventually, though, make some conscious decisions to actually save enough for larger goals, like buying a house or retirement.
One way to use these automated savings apps is to see what your average monthly savings are over a few months. Once you’ve estimated an amount, open a high-interest rate savings account and set up an automatic deposit into that account. You could continue using the apps, then realizing that it is possible to set even more aside.
Be wary of the linked debit or checking account options
One of the features that many automated savings apps offer is a debit card. However, this makes it easy to spend what’s in your savings account. Try not to treat these funds like extra spending money. While this could be your short-term goal for saving, saving money is how you can actively protect yourself from debt.
i.e. having the needed money for emergencies, vacations and how you’ll be able to plan for retirement, etc.
How do you save money? share in the comments below 🙂