An easy way to track discretionary spending is with the use of a personal finance app. A daily latte purchase will really add up – these apps can help you realize how much you’re actually spending. They can also examine behavior around your bank accounts and credit cards to alert you of any issues, such as data breaches.
However, there is one major drawback. Mitchell Lee, cofounder of finance app Penny explained, “Most personal finance apps are built by technical people, for technical people. They have tons of graphs and tables and budgets, which can be overwhelming to people who are just starting out or don’t care to get a degree in finance.” The apps track trends in your spending, but often don’t consider that the average user may not understand how to draw insights from that data.
These apps are certainly a great way to monitor your everyday spending, but don’t put all your eggs in one basket. Personal finance apps should serve as a supplement to thorough financial planning with a trusted advisor. Together, they can help make a comprehensive preparedness plan for your finances. Contact the financial planners at FCG to schedule a consultation today.
Any opinions are those of Darren Olivio, CRPC and not necessarily of Raymond James.