5 Reasons To Use An Expense Tracker App

Here are 5 reasons why you should use an expense tracker app;

5 Reasons To Use An Expense Tracker App
5 Reasons To Use An Expense Tracker App
Anagh Pal - 14 September 2019

Do you maintain a monthly budget? If yes, do you use an expense tracker app? If not, you should use one right away. Why do we say so? Simply because, expense tracker apps are a great way to maintain a budget and stick to it.

Once you start the exercise, you will save more every month and use it on things that matter. Most importantly, it will help you invest for your future goals. Basically, an expense tracker is the best way to manage your expenses, right from your smartphone. You do not need to use an excel sheet or list your expenses in a dairy.

Here are 5 reasons why you should use an expense tracker app;

Track your spends automatically

These apps analyse your SMSs and track your spends. So every time you spend on your debit card, credit card through any wallet, the expenses gets recorded automatically.

Let us assume that you spend Rs 500 at a coffee shop or Rs 2,000 at a petrol pump. The app will read the SMS with the amount deducted and the merchant name and add it to your list of expenses. It also tracks your ATM withdrawals. You can enter cash expenses manually on the app.

Categorise your expenses

Not only can you track your expenses, you can categorise them too. You can select from pre-defined categories like bills, groceries, shopping, eating out, fuel and so on and also adds custom categories. Every spending is grouped into categories. When you play your electricity bills, it gets grouped under ‘bills,’ when you go out for dining, the expenses gets grouped under ‘Eating out’ and so on. So you know exactly how much of money you are spending under each of these categories.

Set spending limits

These apps also let you set spending limits for each category. Let us say you have put Rs 10,000 as the eating out budget in a month. At any point in time you can check out how much of the limit you have spent and how much is left. Setting spending limits are a good way to keep your spending within limits.

In the above example, if you have used up more than half of your limit by the 10th of a month, it would be a good idea to cancel your next eating out plan. One can of course be flexible but nevertheless it helps you stick your budget.

View charts and graphs

These apps represent your spending data in terms of pie charts and graphs, helping you to get a clear picture of your expenses. For example, your expenses under different categories in a month are shown in form of a pie chart. You can also compare your expenses every month through the help of bar charts. Visual representation of data gives you a bigger picture of your finances and helps you to make appropriate decisions.

Never miss a payment

The app will track all your payment dates, whether it is for credit card dues, phone bills, utility bills and so on. It will send alerts to your phone so that you do no miss any payments. Advance alerts help you manage large payments like credit card dues. This means that you do not have to pay late payment charges.

Most of these apps are free, though you can purchase pro versions. Start using an expense tracker app today and get control over your expenses.

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