Lots of people make New Year’s resolutions, and one of the most common themes is improving their personal finances. Whether they set out to better manage their debt, invest more in savings, or budget their spending better, a quick and easy-to-use app on their phone can make that goal much more attainable. Here are five of the best tools to track your spending: MINT CNBC rated this gem of an app the best free budgeting app! Along with extensive budgeting features Setting and Maintaining Budgets in 2023 THE 5 BEST APPS TO TRACK YOUR SPENDING
that sync your checking accounts, savings accounts, loans, credit cards, investments, and bills, Mint can track your expenses and categorize them for budgeting. You can even set limits for each personalized category. The app is helpful for paying down debt, checking your credit score, and saving money. YNAB Instead of tracking past transactions, YNAB is one step ahead and follows a “zero-based budgeting system,” which helps you plan for each dollar earned. When you’re paid, the app assists you in mapping out how much of the income you can spend in each category you set, helping you become more intentional with your spending habits. PERSONAL CAPITAL Used mainly for investments, you can also get some budgeting assistance with this app! Checking accounts, savings accounts, credit cards, 401(k)s, loans, and mortgages can all be tracked and monitored on Personal Capital. The app even offers a net worth and
portfolio tracker to help you get more out of your money.
resulting in no tax savings. It can also be sobering to realize how much your investment account will lose value upon withdrawal. Investing post-tax contributions indeed leaves less money to grow in your nest egg. But after compound interest does its magic, the results are often not as stark as you might believe. Further, someone with $800,000 in tax-free investments will almost always walk away with more money in their pocket than someone with $1 million the government still needs to tax. Of course, tax-deferred accounts have their place, so you should always discuss your circumstances with a professional who can give personalized guidance. When making financial decisions, just remember that conventional wisdom may not be as wise as you think. The Pitfalls of Tax-Deferred Retirement Accounts HONEYDUE Honeydue is an excellent app for couples because it allows each partner to see and track their finances, either separately or jointly. It can sync up bank accounts, investments, and loans and organize expenses into custom categories with personalized limits for each. The best part is that despite being made for partners, privacy can be toggled to each user’s specifications. FUDGET If you’d rather not sync up all of your financial accounts, Fudget may be right for you. The app is straightforward, with lists of incoming and outgoing money and a balance tracker. There aren’t any budgeting categories or graphs to interpret — it’s finance at its simplest. No matter what financial goals you strive to achieve this year, an app is an easy and accessible way to get you on the golden road in 2023!
PAYING THE PIPER
In financial planning, a lot of conflicting advice makes its way to the general public. It’s a result of different investors using different strategies and the uniqueness of each person’s financial situation. But sometimes, even the most established guidance misses the mark. In honor of Opposite Day on Jan. 25, we want to discuss one of the areas where we commonly see confusion and regret: tax-deferred vs. tax-free retirement accounts. Tax-deferred retirement accounts are those like a 401(k) that allow you to contribute non-taxed money. The result is an ability to invest a larger portion of your income into the retirement plan and lower your taxable income simultaneously. But, crucially, taxes are later taken out upon withdrawal from the account. Tax-free retirement accounts refer to accounts like IRAs where already-taxed income
is invested. Of course, the money is therefore not truly “tax-free,” but your distributions during retirement will be (if you follow the rules). People generally invest in tax-deferred accounts because it’s easier. You set it up through your paycheck and forget about it — and better yet, your work may match a portion of your savings. Further, standard financial advice has long held that you’re better off waiting to pay your taxes. Those who espouse this viewpoint argue that you’re likely to be in a higher tax bracket during your working years, and your tax rate will be lower when you take your withdrawals. Many people have discovered it’s not necessarily the case. While countless retirees set out to downsize, they often find it more difficult than expected. As a result, their retirement income is the same as when they were working,
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