Ways Online Budgeting Software Can Save You Money
If you've ever forgotten to make a credit card payment on time, you've felt the sting of late fees. If it happens several times throughout the year, it can cost you a significant amount in fees plus added interest. Better budgeting software, like Quicken, can save you money by sending you email and text alerts for upcoming payments. You'll be in a position to avoid late charges because the software notifies you far enough in advance to make payments in a timely manner.
Lower Your Credit Card Costs
Budgeting software can save you money by showing you the benefits of using less costly credit cards, according to registered investment adviser Elisha Zarecki. "After answering a few questions about your spending habits, good online budget programs recommend the best credit card to meet your needs, whether that means higher rewards, lower interest (APR), or cards for people with poor credit." The software might ask about your monthly credit card spending, your primary purchases, how you want to be rewarded, your payment habits and your credit score. The software's recommended credit cards should show you annual fees, rewards and the average annual savings you could enjoy. A cheaper card lets you budget fewer dollars each month for interest payments.
Cheaper Financial Services
Budgeting software sometimes has built-in recommendations for cheaper financial services including: • Checking accounts; • Savings accounts and CDs; • Home loans; • Brokerage and retirement accounts; and • Insurance. Zarecki says, "A savings account with higher interest and lower fees could save you money every year. When it comes to car insurance, you could often get the same coverage from a different company and save hundreds if not thousands a year."
Credit Score Reporting
An important tool offered by some budgeting software providers is credit reports. Zarecki says, "Checking your report annually is a great way to identify mistakes in your credit history or even spot identity theft. Making sure your report is in order can help ensure you get the lowest rate on everything from a mortgage to a car loan."