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Business Insider
24-05-2025
- Business
- Business Insider
The very first thing to do if you want to spend less, according to financial planners
Even if you know you need to spend less, it can be hard to know where to start. Learning how to budget can be overwhelming without guidance, and not going in with a strong plan can lead to frustration and difficulty sticking to your goals. Business Insider asked CFP® professionals what their first response would be if their clients asked them how to spend less. Their responses fell into three major groups, all focused on understanding how you can make your budget work for your savings goals. Understand your motivation to spend less When asked the first thing they'd say if a client wanted to know how to cut spending, multiple financial planners said they would first want to dive into the client's motivations. Understanding your motivations will not only keep you dedicated to spending less, but it will also help you determine what cost-cutting steps you should take going forward. "I think understanding the why is really important, right?" says Christopher Stroup, CFP® professional, founder and financial advisor at Silicon Beach Financial. Stroup says the cause could be credit card debt, a dwindling bank balance, or just wanting to be more proactive about saving. "Ask what's behind their reason for that, so we can better understand what to do next." Once you have a firm grasp of why you want to save, you can start diving into your current spending habits. See if your current spending matches your priorities Before you can start cutting down on expenses, you need to know what expenses there are to cut. "The first thing I tell them is to understand what they're spending now; to really get clear on, OK, what are you currently doing? Let's make a list," says Angela Moore, CFP® professional, financial guide at Fruitful. She says that doing this can help you spot easy places you can save, whether by cutting subscriptions you aren't using or negotiating bills down. Valerie Rivera, CFP® professional, founder of First Gen Wealth, says it's important to review your spending and make sure it's aligned with your priorities. "So I ask them, do you feel like, now that you've reviewed your spending, that your money is going to where you prioritize? And a lot of times, what I hear is, 'Oh my goodness, no, I had no idea that I was spending this much on takeout.'" If you're struggling to know where to start on sorting your spending, a budgeting app can help. Apps like Rocket Money, Monarch Money, or the YNAB App can auto-sort your expenses and categorize them for you. You'll probably have to go through and manually sort your expenses afterward, but budgeting apps give you a place to start if you're overwhelmed. Apps like Rocket Money even offer concierge services, which will do things like cancel subscriptions or negotiate bills for you. These services come with fees, so you'll have to decide whether those fees are worth the money you'll save. You'll also want to consider whether you're willing to pay money for a budgeting app, or if you'll want to use a free one. Free budgeting apps are hard to find, but many apps, including the YNAB App and Monarch Money, offer free trials. If you just need help getting started, you could start a free trial with one of these apps and copy the information into a Microsoft Excel sheet before the trial is done. Choose one or two areas to focus on cutting spending in your budget Once you know what you're spending on, you'll need to actually start cutting spending. Adrianna Adams, CFP® professional, head of financial planning at Domain Money, says that once you know what you're spending on, it's time to choose one or two places to cut spending. "The very first thing is you have to do a deep dive of where your money is going, because you need to pick one or two things to focus on," says Adams. "When clients just try to pare back everything, it's very hard to really make any habitual changes," she adds. Choosing budgeting areas to concentrate your energy on also lets you keep discretionary expenses that are meaningful to you while cutting spending in areas that aren't as important.
Hamilton Spectator
20-05-2025
- Business
- Hamilton Spectator
New to finance apps, trackers and spreadsheets? My pro tip guide to getting started
It doesn't matter how simple or fancy your financial tools are, the only way your money situation will improve in these turbulent economic times is through consistent effort to try to make it better. That means developing good spending and savings habits. If you're committed to that, selecting the right tools for your situation gets easier. Here's what you need to consider as you wade through the thousands of options. Different tools are designed to excel in specific areas, and that's a good thing. Are you wanting to focus on budgeting, which involves tracking daily expenses, income, bills and recurring subscriptions? Is your priority saving? Perhaps you have specific targets for an emergency fund, down payment or vacation. Is debt reduction most important? There are tools for managing loans, paydown calculators and even your credit score. Do you want to start investing, or simply progress the investments you already have? Once you're clear, your search for the best tools becomes easier and you're less likely to end up with one that only does part of the job you need it to do. I've supported students with math degrees who can't work through simple budget spreadsheets, and artists who leverage AI to paint themselves a literal picture of future retirement income. Everyone is unique. The right tools are out there for your style, in your preferred colour scheme, level of detail, degree of automation and more. How do you thrive when learning something new or trying to get better at a skill? Are you a mobile-first or desktop user (small screen vs. big screen vs. face ID or not)? Do you like to manage money daily, weekly, monthly? My pro tip here is that you should be looking at your money situation a minimum of once per week. Do you like when you get to DIY a lot of the inputs, or prefer it to be automatic? Are you someone who appreciates incredible detail (YNAB and Monarch Money do that, btw), or are you better served with basic overviews like in the free version of Goodbudget? When in doubt, start with a more simple tool. Some tools directly connect to your bank accounts so they can pull balances, transactions and other data that help formulate key insights, like categories of spending that seem to be problematic or investment portfolios that appear off-balance. But you might not be comfortable sharing your personal data with these tools and apps. Perhaps you are, but need to do a deep dive on how security measures work, like bank encryption and t wo-factor authentication . If you're worried about security, you can always take the path of manually updating your own data into a spending tracker, budget or net-worth spreadsheet, and deduce things like investment performance via quarterly and annual performance reporting from the financial institution that holds the accounts. The same goes for debt-payoff calculators; updating remaining balances each week as you crush the highest interest ones first. If you need a hand figuring out what all the numbers mean, a financial adviser or money coach can help you digest this information and provide you with customized insights. They'll almost certainly charge a fee for this service, so keep that cost in mind. No matter your comfort level, I recommend automating as many of your bill payments as possible so they never get forgotten. If you're up for some personal reflection, keeping a money journal can be super helpful as a place to jot down goals and process any big feelings you might be having about your finances — it's nearly impossible for an app to help with that! Some tools are free and others are paid, and certainly if you're leveraging any kind of investment platform you'll be paying fees associated with the particular investments and level of service you've subscribed to. Factor the costs into your budget just like you would for a subscription to Netflix. I also recommend taking advantage of the free trial period before you sign up. Paid budgeting and net-worth monitoring apps typically cost about $100 over the course of a year, but fees vary widely, promo periods end, service tiers change. Keep in mind these tools should be giving you powerful insights to help save you money; if they're not doing that, especially if they're not even covering their costs, they, or your habits, aren't working for you. If you've had a hard time sticking with programs or tools in the past, choose simpler, free financial tools rather than feature-rich platforms you'll abandon quickly and waste money on. Now it's time to search for tools that will work for you, and AI can really help. Input prompts like 'highly detailed spending tracker for a hands-on learner' or 'seeking best free mobile app for checking credit score in Canada' or 'insights-driven net-worth trackers for ETF investors under $15 per month.' Compare the results with recent user reviews on Reddit, Google, app stores and in community groups. As an example, I belong to 'Moms at Work' on Facebook and we are always chatting about money, new personal finance tech and more. Consistency with budgeting, spending wisely, investing and saving is the secret ingredient to financial success. And consistency, though not easy, is free. There is no app required for that.
Toronto Star
20-05-2025
- Business
- Toronto Star
New to finance apps, trackers and spreadsheets? My pro tip guide to getting started
It doesn't matter how simple or fancy your financial tools are, the only way your money situation will improve in these turbulent economic times is through consistent effort to try to make it better. That means developing good spending and savings habits. If you're committed to that, selecting the right tools for your situation gets easier. Here's what you need to consider as you wade through the thousands of options. Figure out your financial priorities Different tools are designed to excel in specific areas, and that's a good thing. Are you wanting to focus on budgeting, which involves tracking daily expenses, income, bills and recurring subscriptions? Is your priority saving? Perhaps you have specific targets for an emergency fund, down payment or vacation. Is debt reduction most important? There are tools for managing loans, paydown calculators and even your credit score. Do you want to start investing, or simply progress the investments you already have? Once you're clear, your search for the best tools becomes easier and you're less likely to end up with one that only does part of the job you need it to do. ARTICLE CONTINUES BELOW Honour your learning style I've supported students with math degrees who can't work through simple budget spreadsheets, and artists who leverage AI to paint themselves a literal picture of future retirement income. Everyone is unique. The right tools are out there for your style, in your preferred colour scheme, level of detail, degree of automation and more. How do you thrive when learning something new or trying to get better at a skill? Are you a mobile-first or desktop user (small screen vs. big screen vs. face ID or not)? Do you like to manage money daily, weekly, monthly? My pro tip here is that you should be looking at your money situation a minimum of once per week. Do you like when you get to DIY a lot of the inputs, or prefer it to be automatic? Are you someone who appreciates incredible detail (YNAB and Monarch Money do that, btw), or are you better served with basic overviews like in the free version of Goodbudget? When in doubt, start with a more simple tool. Check your comfort level with certain features Some tools directly connect to your bank accounts so they can pull balances, transactions and other data that help formulate key insights, like categories of spending that seem to be problematic or investment portfolios that appear off-balance. But you might not be comfortable sharing your personal data with these tools and apps. Perhaps you are, but need to do a deep dive on how security measures work, like bank encryption and t wo-factor authentication. If you're worried about security, you can always take the path of manually updating your own data into a spending tracker, budget or net-worth spreadsheet, and deduce things like investment performance via quarterly and annual performance reporting from the financial institution that holds the accounts. The same goes for debt-payoff calculators; updating remaining balances each week as you crush the highest interest ones first. If you need a hand figuring out what all the numbers mean, a financial adviser or money coach can help you digest this information and provide you with customized insights. They'll almost certainly charge a fee for this service, so keep that cost in mind. No matter your comfort level, I recommend automating as many of your bill payments as possible so they never get forgotten. If you're up for some personal reflection, keeping a money journal can be super helpful as a place to jot down goals and process any big feelings you might be having about your finances — it's nearly impossible for an app to help with that! ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Paying for tools won't guarantee results Some tools are free and others are paid, and certainly if you're leveraging any kind of investment platform you'll be paying fees associated with the particular investments and level of service you've subscribed to. Factor the costs into your budget just like you would for a subscription to Netflix. I also recommend taking advantage of the free trial period before you sign up. Paid budgeting and net-worth monitoring apps typically cost about $100 over the course of a year, but fees vary widely, promo periods end, service tiers change. Keep in mind these tools should be giving you powerful insights to help save you money; if they're not doing that, especially if they're not even covering their costs, they, or your habits, aren't working for you. If you've had a hard time sticking with programs or tools in the past, choose simpler, free financial tools rather than feature-rich platforms you'll abandon quickly and waste money on. Now it's time to search for tools that will work for you, and AI can really help. Input prompts like 'highly detailed spending tracker for a hands-on learner' or 'seeking best free mobile app for checking credit score in Canada' or 'insights-driven net-worth trackers for ETF investors under $15 per month.' Compare the results with recent user reviews on Reddit, Google, app stores and in community groups. As an example, I belong to 'Moms at Work' on Facebook and we are always chatting about money, new personal finance tech and more. Consistency with budgeting, spending wisely, investing and saving is the secret ingredient to financial success. And consistency, though not easy, is free. There is no app required for that.
Business Insider
25-04-2025
- Business
- Business Insider
The sneakiest places people tend to overspend, according to a financial planner
Overspending can derail a budget and get in the way of smart financial planning. By planning ahead, you can cover everyday and emergency expenses, while leaving room for your wants. Budgeting apps can help track hidden expenses and give you a clear picture of your spending habits. Overspending can significantly impact your budget. However, more often than not, it's not one big splurge, but several smaller purchases, that quietly derail a budget. Understanding where budgeting tends to go astray is the first step in learning how to save money effectively. Once you're aware of the sneakiest places you tend to overspend, you can start making intentional changes that get you back on track. 'The ostrich approach' makes your money disappear When thinking about cutting back on spending, you might consider skipping out on takeout or a few shopping trips. But some of the most overlooked money drains aren't one-off expenses like these. "Some of them wind up being in their streaming services and charges associated with their technology," said Eric Brotman, CFP® professional and CEO at BFG Financial Advisors. "Some of them are places like insurance, where a lot of consumers don't understand what they own, and they're kind of over-insuring for little things. A lot of people are also overpaying on taxes because they're not doing the right kind of tax planning." Expenses like monthly subscriptions, excessive insurance policies, and tax inefficiencies tend to fly under the radar because they're often baked into everyday life. Unlike impulse purchases, they're recurring or embedded in essential systems, making them harder to spot and cut without a closer look. "A lot of this comes down to what I call the ostrich approach, burying your head in the sand and not being aware," Brotman said. "I think most of us overspend by accident. And so the biggest mistake I see is people spending whatever comes in from their paycheck and hoping there's money left at the end of the month so that they can save some." Ways to regain control of your spending Review your statements A smart starting point is reviewing your bank statements and credit card balance regularly. Look at your statement balance each month to understand where your money is going and if you need to adjust your spending. Track expenses Tracking hidden expenses is key to gaining control over your finances. Using one of the best budgeting apps such as Monarch Money or YNAB can make these costs visible by automatically categorizing transactions and highlighting patterns over time. When you can see exactly where your money is going, it becomes easier to make informed decisions and adjust your spending habits before things get out of hand. "One way is to use personal finance software that will download all of your expenses, categorize them, and help you see trends," said Brotman. "I've been using that religiously for a long time, and I think it helps me find where there are either sudden changes or where there's a trend going the wrong direction." Other tools like Rocket Money can also help identify and cancel unnecessary subscriptions, a common outcome of lifestyle creep. Catching those creeping costs early can make a big difference over time, especially if they're draining money you could be saving or investing. Prioritize savings It's easy to let discretionary spending eat away at your paycheck, especially when you only think about saving what's left over. But a better strategy is to treat savings like a bill you pay to yourself first. When your bills and savings contributions are set on autopilot, you can make consistent progress toward your goals before the rest of your money is spent on non-essentials. This strategy helps reduce the mental load of money management while preventing late fees, missed payments, and overdraft fees. "I advise everybody to pay themselves first," said Brotman. "Then, no matter what your income is, take the first 10 or 15% or whatever that number is for you, and automate your savings and your investment." Regaining control of your budget While sneaky overspending can derail your budget, the key to regaining control is awareness. Achieving your savings goals, paying bills on time, and still having discretionary funds is possible, but it requires consistency and a proactive approach. Regularly reviewing your finances and making adjustments as needed ensures that you're staying on track to meet both short-term and long-term financial goals.
Yahoo
04-02-2025
- Business
- Yahoo
AI, your money: Tools that can help you save, invest
(WSPA) – We all hear a lot about artificial intelligence, but are you taking advantage of it? When it comes to your finances, there are a lot of AI-fueled tools that could help you save more, even make more. In this consumer exclusive, how AI can help you grow your wealth. In 2025 it's no longer a question of simply a digital divide, there's now a growing separation between those using artificial intelligence and those who won't touch it. Mark Henry, CEO of Alloy Wealth Management in Greenville, said when it comes to personal finance, avoiding AI may be akin to wasting money. 'First off, the genie's left bottle. AI is here. I encourage people to embrace it because I think you'll find when you start adapting to it you're going to really like it. When you have a partner in an app let's say that is AI-driven, that can encourage you, help you stay on your goals, give you good tactical things that can help you, well that's brilliant,' Henry said. There are a growing number of AI-fueled apps that can help you financially. Take budgeting for instance. Cleo is a top-rated AI money coach that helps you save more and build credit. Monarch Money won the best budgeting app of 2024. It simplifies finances by bringing all your accounts into one easy view. There are dozens more that help you save, just search 'AI budget', but what about making money? Henry said that one is tricky, but he believes you can use AI to better inform your decisions on investments, as long as you do your research. Some notable AI-powered investment apps include: Magnifi connects to your brokerage account so you can use AI to analyze your portfolio. Trendspider which has real-time scanning where you can search for market opportunities. To choose the best AI personal finance app for you, read the reviews and look for specific functionalities that meet your goal. Also, research the app's accuracy: Data privacy Ease of use Pricing Compatibility with your device Keep in mind, AI apps may answer your questions, but they won't ask you important questions back, like a personal finance professional. Kylie Felker, President of the wealth management firm Foster Victor, said either way, AI is transforming the industry. 'In the past I think we've all needed to leverage very expensive software to find information about the markets or about different allocations, different metrics etc. Now, a lot of that stuff is available at your fingertips,' Felker said. Henry couldn't agree more. 'AI is going to take everything that's been written, published, analyze it instantly, and put it back on your phone or laptop,' Henry said. However, he said people should not use AI when they solely rely on it to make financial decisions. So instead of avoiding the new tech, the take-home is to take advantage but with common sense. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
