Budgeting and taking control of your personal finances are intimidating tasks for many of us, especially when we are trying to save for a big purchase, such as a car or the deposit for our first home. Young people in the United Kingdom, for instance, are losing the savings habit so deeply ingrained in older generations. According to official figures, more than half (53 percent) of 22- to 29-year-oldshave no money set aside in savings accounts or ISAs, which makes them less likely to get on the property ladder.
Technology can give us a hand to make a sense of our personal finances. These tools will help you get a hold of your budgeting and reduce your monthly bills, especially when you are trying to secure a (re)mortgage deal.
These apps are a fantastic way to learn to live on last month’s income and start putting some money aside. You can add your own transaction categories, track bills and set budgets that send an alert when they are close to maxing out. Most apps update automatically, so you have a clear picture of your spending habits in real time. Depending on your needs and the type of features you are after, some options will be free and others will require a yearly subscription. Take your time to test a few apps to see which one works for you. Money Dashboard, PocketGuard, Yolt and Squirrel are popular choices.
If saving has always been a challenge for you, then you need to slowly start getting into the habit. And what could be easier than a tool that does it for you? These tools help you save money by automatically setting aside the change every time you buy something with your card. For example, if you buy a cup of Americano for £2.45, these tools will round the transaction to £3 and send those 55p to a Stocks and Shares Individual Savings Account (ISA). It is a mindless way to put your spare change to work. These micro-investing solutions are not free but are very reasonably priced. Moneybox is a popular service in the UK.
These tools could help you supplement your deposit, but there are additional tools that can take your money even further. Getting advice from a remortgage expert such as Trussle, which bases its searches on your circumstances, could increase the likelihood that your (re)mortgage deal will save you even more money over the longer term.
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