A lot of home buyers find it hard to save for that all-important down payment on a home. It’s something that you should start doing a couple of years before you start house hunting. It also requires you to set out a budget to follow. Thankfully, there are a number of tools and apps for budgeting that you can find online. Our Edmonton mortgage broker team is here to explain which apps are best for you.
Overview of Budgeting Apps
A budgeting app can be a really powerful tool that helps you save, improve and monitor your finances. Many of these can be customized for your preferences and needs. Most financial institutions in Canada offer their own spending apps and mortgage calculators, which can be used in conjunction with other budgeting apps for your smartphone. From planning for your down payment to making sure you don’t overspend, here are some examples of the apps that you can use in 2021.
Mint Budgeting App
This is a free app that is user friendly and can link up with your bank account. The main feature of this app is to track your budget and expenses. It lets you set up a savings goal, will alert you to bills that are due, and warns you if you are going over your budget limit.
You Need A Budget
Also referred to as YNAB, this is another popular app to help you save. You can set financial goals, track your spending, and monitor bank accounts. It’s a user-friendly app that offers tips for saving and budgeting that will help you to live within your means so that you can save or get yourself out of debt. It’s good for beginners because it teaches you how to make each dollar count, develops your awareness of what you spend when you spend it, shows you how to create a rainy day fund, and overall money mindfulness. Keep in mind that the app isn’t free. You have a 24 day trial period and then pay $6.99 a month.
The Wally app offers a savings slider tool that can be really helpful when it comes to tracking your money. It allows you to set up a percentage of your income to set aside for savings. It also offers the standard tools for tracking your budget and learning how to use your money better.
Mylo is another app that connects to your bank and will help you save by rounding up your debit and credit purchases and depositing the extra into an account. You are able to set customized goals or choose one of the three basic goals the app offers. It also offers you cashback perks if you buy from one of its partnered businesses.
Some may feel more comfortable using the mortgage and budgeting tools offered by their lenders. These can work alongside savings apps because they let you set up your budget and allow you to use different scenarios to see how much you could be spending or saving each month. For example, choosing to refinance your mortgage can help you lower your monthly repayments and get you a better interest rate. The extra funds that you save can be implemented into the budgeting app on your smartphone and put into a savings account for a down payment on your next home. There are many ways to start saving for your down payment and the tool that is right for you will depend on your own needs. They definitely can help you get your budget under control and keep track of where your money goes. Just being more aware of your daily spending can make a huge difference.