Issue #42: From budgets to nuggets, there's an app for that

Just like how my Chick-fil-A app aims to make ordering nuggets easier, budgeting apps aim to make tracking my spending easier. Press said the primary benefit is that they categorize my expenses — “give you a really good visual on what you’re spending on.” 

Sure, in theory, I don’t need an app for that. I could make my own visuals by printing out my last three months of credit card statements and using different-colored highlighters to classify the different line items. 

But I know myself, and I know I’m a lazy millennial, so it might be faster to just have an app take care of it for me. Mint, for example, will hook up to my accounts and instantly sort my recent expenses into a nice rainbow-colored pie chart with slices for gas, utilities, shopping and more. 📈📈📈

Whether I make a budget by hand or by app, the goal is the same: to become more conscious of my money decisions.

“When you can break down and look to see that you're spending $500 a month at Starbucks, that might be an eye-opener for people to say, ‘Oh boy, maybe I shouldn’t go every day,’” Press says. “‘Maybe I should be putting that into an emergency fund or retirement account.’”

The issue with apps comes when they start charging for their services. Mint is free, but You Need a Budget is a hefty $11.99/month (or $84/year).

Now, paid services do have some impressive bells and whistles. YNAB, which brags that new users save an average of $600 in their first two months, offers goal tracking, personal support and reports. Press said these can help me get on my feet when I’m first starting out. They can teach me financial tricks I might not know about, like the importance of setting up my emergency fund or taking advantage of my employer’s 401(k) match.

But Press brought up a good point: If I’m splashing out like $100 a year for an app, it’d probably be wiser to use that money to get individualized attention from an expert. (Here's one option.)

“People would be much better suited to have a financial advisor to help them in person rather than just an app that they’re paying to use,” Press says. “We can really tell what you’re frivolously spending on your actual needs versus your wants.”

(but please don't tell me you scrolled past all of my hard work)

I should download a budgeting app because I’ve got nothing to lose, and it may give me a kick in the pants to start spending smarter. (Example .) Paying is fine, but if I find I’m spending a lot on subscription fees, I might want to contact an IRL financial planner.

This is especially true as my money situation grows more complicated with investments, spouses, kids or houses. 

“There’s so many great apps out there where you might not need to pay for them,” Press says. “I would much rather someone spend on a qualified financial advisor.”

via GIPHY

check out this crazy celebrity purchase

via Getty

Actor Ryan Reynolds was supposed to give the commencement speech this month at his Vancouver alma mater, Kitsilano Secondary School. But the coronavirus had other plans, so Reynolds addressed the class via video — and bestowed a delicious parting gift. Reynolds is buying each of the 385 new grads a large pizza from a nearby restaurant. That adds up to more than $8,000, so I’d say Reynolds is doing Nat’s Pizzeria muuuch more than a simple favor.

five things I'm loving online right now

send me cute pictures of your pets, please

CREDIT: KELLEY ICE

This is Bolt, a pine cone fiend with amazing eyes. Bolt was a puppy when this was taken back in October, but now that he’s grown up he realizes the importance of budgeting his kibble.

Gotta go update my apps. All 87 of them.

See you next week.

Julia

P.S. Thank you for the 401(k)9 and (k)itty contributions last issue! I'm stocked up for now. I also got a recommendation for Ozark on Netflix. 😎 As far as money-related replies go, Scholar Jay is keeping three months of expenses in an online high-yield savings account, with another three to six months in a balanced money market fund. Scholar Robin has kept emergency funds in CDs for years. Scholar Jim says to check out depositaccounts.com to make sure I'm getting the best rates possible on my savings.

P.P.S. Do you use a budgeting app? Do you think it helps with your spending? How long would it take you to eat $8,000 worth of pizza? Send me a Dolla Scholla holla at julia.glum@money.com or @SuperJulia.