So, you’ve finally saved up a nice little nest egg. You’ve resisted the siren song of daily lattes, swiped left on impulse purchases, and watched your savings account grow like a proud parent. Now, you’re faced with a classic financial dilemma: should you use your hard-earned cash for a bigger down payment on your dream home, or keep it stashed away for those rainy days that Murphy’s Law promises are coming?

Let’s dive into this conundrum with some wisdom and a splash of practical advice.

The Case for a Bigger Down Payment

Ah, the sweet allure of a bigger down payment. It’s like the golden ticket to lower monthly payments, better loan terms, and possibly even avoiding the dreaded private mortgage insurance (PMI). Who wouldn’t want that? If you can put down 20% or more, you’re not just buying a home—you’re flexing your financial muscles.

But before you go all-in, ask yourself: is this your “forever home” or just your “for-now home”? Throwing every last cent at a bigger down payment might not be wise if you’ll move in five years. Remember, your house isn’t just a place to live; it’s also an investment. You want to balance building equity and keeping enough liquidity to sleep at night.

The Case for Keeping Your Emergency Fund

On the flip side, life is unpredictable. Just when you think you’ve got it all figured out, your car’s transmission gives up, your dog swallows something expensive, or your boss decides that your company’s “restructuring” doesn’t include you. That’s why keeping an emergency fund is non-negotiable.

Experts recommend setting aside three to six months’ worth of living expenses. Let’s be real. Those experts have probably never priced out a root canal or an unexpected flight home for a family emergency. So, it’s not just about math; it’s about your peace of mind.

If putting down a bigger down payment drains your emergency fund to dangerously low levels (or worse, wipes it out), you’re essentially gambling on nothing going wrong. And as we all know, life loves to throw curveballs.

The Third Option: Why Not Both?

Here’s a radical idea: why not split the difference?

Instead of depleting your savings entirely for a bigger down payment, consider putting down enough to improve your loan terms without compromising your financial safety net. For example, you might aim for 10–15% down and keep the rest as a cushion for life’s surprises.

Another option? Build a hybrid strategy. Use part of your savings for a bigger down payment, but replenish your emergency fund over time with aggressive saving. It’s not as instant-gratification-friendly as dropping all your cash on the house, but it’s a balanced approach that can keep you financially and emotionally secure.

Factors to Consider

1. Job Security: If you’re in a stable career with consistent income, you might feel comfortable leaning toward a bigger down payment. But if your paycheck depends on the whims of the gig economy or a flaky boss, prioritize your emergency fund.
2. Interest Rates: If interest rates are historically low (like they have been in recent years), a smaller down payment might make sense. Your money might grow faster in investments or a high-yield savings account than you’d save on interest payments.
3. Future Plans: If you plan to start a family, go back to school, or take a sabbatical, keeping some cash on hand might outweigh the benefits of a bigger down payment.
4. Your Risk Tolerance: Some people sleep soundly with just $500 in their checking account. Others panic if they have less than $50,000 in savings. Know thyself.

Final Words

Ultimately, the decision boils down to your unique circumstances. If you feel confident in your job and have a rock-solid budget, a bigger down payment could set you up for financial success in the long term. But if the thought of draining your savings gives you hives, it’s okay to prioritize your emergency fund.

Remember, buying a home is a big deal—but so is peace of mind. The key is to strike a balance between being financially responsible and not living in a state of perpetual anxiety. After all, what’s the point of having a house if you can’t afford to furnish it or, you know, fix it when the roof starts leaking?

So, whether you choose the path of the bigger down payment or the emergency fund, the goal is building a secure and sustainable life. And hey, if you’re still unsure, maybe it’s time to consult a financial advisor—or at least flip a really big coin.

The post Should You Use Your Savings for a Bigger Down Payment or Keep it for Emergencies? appeared first on MoneyMiniBlog.

Even the most budget-conscious shoppers have certain grocery items they refuse to give up, and these choices can be important for maintaining quality of life. Sometimes, spending a little extra on high-quality food adds value by supporting health, enjoyment, or family traditions. While saving money is important, making thoughtful exceptions for items that matter most … Read more

It pays to get the lowest price, even after you’d bought something. Shopping around is key to getting a decent price. You can do this by using comparison sites such as PriceSpy or Idealo. Now, you’d think the next step would be to buy the items at the cheapest shop. But actually it can be […]

The post Where to price match and save cash appeared first on Be Clever With Your Cash.

Welcome to the “Investing for Beginners” podcast, where we explore essential strategies for successful investing. In this episode, we introduce the PIVOT framework, focusing on portfolio management, diversification, and balancing risk and reward to enhance your investment journey.

• 00:00:00 – Introduction to podcast and unique episode format.
• 00:00:51 – Overview of the PIVOT framework for investing.
• 00:01:05 – Focus on portfolio management’s vital role.
• 00:02:00 – Importance of conviction and diversification in investments.
• 00:03:15 – Buffett’s punch card analogy for investment strategy.
• 00:04:00 – Difficulty in finding multiple great monthly investments.
• 00:05:01 – Discussion on position sizes and portfolio balance.
• 00:06:11 – Need for industry diversification in portfolios.

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The post Understanding the PIVOT Framework in Investing: Focus on Portfolio Management appeared first on Investing for Beginners 101.

Living alone has its benefits, but it also comes with the constant temptation to spend money just to break the quiet. A quick coffee run here, an online purchase there – it adds up quickly. I’ve been working on finding ways to occupy my mind without spending on unnecessary extras. After some trial and error, I’ve settled on three budget-friendly pastimes that are saving my wallet and giving my mind something engaging to do: puzzles, Legos, and Christmas movies.

Puzzles: Mindful Focus Without the Extra Cost

Puzzles are, hands down, one of the best ways I’ve found to keep myself entertained without a single dollar spent after the initial purchase. We’ve done puzzles as a family since the kids were little, little. I’ve even taken puzzles on our roadtrips. We have done them in hotels. Puzzles are a family favorite.  We do them, then we donate them. And I can typically pick them up for $5-8. And always have 1-2 in the board game closet. I pulled this one out when I got back from Texas.

Puzzles give me something to focus on, piece by piece, and keep my mind active and absorbed. Plus, each puzzle stretches out for hours or even days, depending on my pace, which means it’s an investment in entertainment that lasts far longer than a one-time outing. When I’m puzzling, I don’t feel the itch to spend because my mind is too occupied to even think about shopping. Win-win.

Legos: A Creative Outlet That’s Surprisingly Affordable

Rediscovering Legos as an adult has been one of the best surprises in my quest for frugal entertainment. It started when my daughter’s boyfriend gave her a Lego flower bouquet. I thought it was so cute! And now I’ve got my own. I anticipate that after the hours I spend building and then admiring the end result. It’s a way to scratch that creative itch and stay busy without looking for distractions online. The act of building with my hands keeps me from looking for other ways to pass the time that could easily turn into impulse spending. And it’s really been working. (I realized yesterday that I haven’t had to get gas since returning from Texas.)

Christmas Movies: Cozy Entertainment at No Extra Cost

I’ve always loved Christmas movies, but now they’re more than just a tradition; they’re my go-to for affordable relaxation. I pull up the options, settle in with some tea and a blanket, and instantly feel that cozy holiday spirit. It’s an ideal way to pass the time without adding to my expenses. It’s amazing how much this cozy ritual calms the urge to browse online when I’m alone.

Protecting my Wallet…and my Sanity

Each of these activities keeps my mind engaged, my hands busy, and my wallet safe. Finding frugal joy in puzzles, Legos, and Christmas movies has been the perfect way to entertain myself without the usual spending pitfalls. They’re not just pastimes; they’re my defense against unnecessary spending and my go-to mental escapes. So, for now, I’ll happily settle in with my puzzle pieces, a stack of Lego bricks, and a holiday film queued up – because sometimes, simple, budget-friendly pleasures are exactly what we need.

Sidenote: One nice thing about living alone now is that I can leave them out on my kitchen table for days, weeks, even months without bothering anyone or prohibiting anything like a family dinner. How do you entertain yourself on a budget?

The post Finding Frugal Joy: Puzzles, Legos, and Christmas Movies as Budget-Friendly Entertainment appeared first on Blogging Away Debt.

THE JUNE 16, 2021, edition of The Washington Post carried this headline: “Cristiano Ronaldo snubbed Coca-Cola. The company’s market value fell $4 billion.”

The incident in question had occurred a few days earlier, at a press conference in Budapest, where the soccer star was set to play in a high-profile championship game. Coca-Cola was a sponsor of the tournament, so when Ronaldo sat down at the microphone, he found two bottles of Coke positioned in front of him.

Ronaldo wasted no time in moving the bottles out of the camera’s range. To make his point clear, he put a bottle of water down instead. “Agua,” he said in Portuguese. “No Coca-Cola.”

The press conference took place just as markets were opening in the U.S. and, as the Post reported it, “The simple gesture [of moving the bottles] had a swift and dramatic impact: The soft drink giant’s market value fell $4 billion.”

Coke’s share price did indeed drop that day. But in his book Trailblazers, Heroes & Crooks, Stephen Foerster offers a more careful examination of the incident. Looking at trading data, Foerster found that Coke’s share price had already declined before the press conference, and it actually rose afterward. In other words, Ronaldo didn’t cause the share price to drop.

What did? Stock prices can rise or fall for any number of reasons. But in this case, there was something specific. June 14, 2021, was what’s known as an “ex-dividend” date for Coca-Cola. This is an important but often overlooked dynamic that affects stocks and mutual funds.

When a company is getting ready to pay a dividend, it announces in advance the date that it will be paid. That’s called the “payable date.” For logistical reasons, it sets an earlier date as a cutoff for eligibility to receive that dividend. That earlier date is the ex-dividend date, or ex-date. The idea is that shareholders who own the stock on or before the ex-date will receive the upcoming dividend, while those who purchase the stock after the ex-date won’t.

As a result, all things being equal, stocks will typically fall on the ex-date by roughly the amount of the dividend. That’s because that cash is no longer in the company’s coffers and is thus no longer a part of its value. In the case of Coke’s stock on that ex-date in 2021, the drop wasn’t precisely equal to the dividend, but it was close.

This dynamic is more pronounced and more relevant when it comes to mutual funds and exchange-traded funds (ETFs). By law, mutual funds and ETFs are required to distribute the bulk of their income to shareholders on a pro-rata basis. A fund owning stocks, for example, is required to distribute all of the dividends generated by the fund’s stocks. Similarly, a fund owning bonds is required to distribute all the interest paid by its bonds. In this way, from a tax perspective, owning a fund isn’t too different from owning the individual investments in the fund.

Fund investors, however, face another category of taxes—one that holders of individual stocks and bonds don’t have to contend with. Fund shareholders also share in the capital gains generated within the fund. If the fund’s manager decides that he wants to sell one stock to buy another, and he sells the first stock at a gain, each shareholder in the fund will have to share in the resulting tax bill. And if that trade results in a short-term gain—taxable at a much higher rate—each shareholder will bear some of that cost.

As I described a few years back, these capital-gains distributions can have a surprisingly large—and adverse—impact. Because shareholders don’t know a fund’s trading plans, this tax bill is also generally unpredictable.

All that said, I always recommend investing in the stock market via mutual funds or ETFs, rather than buying individual stocks. But how can you guard against potentially negative tax results when investing in a fund? I have five recommendations:

1. While fund distributions are unpredictable and can vary from year to year, you can at least find out the date on which they’ll be paid. That way, you can avoid making a large investment just before a distribution is paid. This scenario is a problem for taxable-account investors because it means that a portion of their latest investment is immediately returned, along with a tax bill. Taxable investors will be on the hook for that tax bill even if they opt to reinvest the distribution in additional fund shares.

Consider a new investor in American Funds’ Growth Fund of America. Last December, that fund made a distribution equal to 6.9% of the fund’s value. You wouldn’t have wanted to invest in advance of this payment because it would’ve resulted in an immediate but avoidable tax. Distribution schedules are available on fund company websites. Here are links to the 2024 schedules for Vanguard Group and Fidelity Investments.

2. Funds like the Growth Fund of America tend to make sizable distributions because they’re actively managed, which means these funds can engage in significant trading that then results in realized capital gains. Some funds are even worse. In a recent roundup, Morningstar identified dozens of funds slated to distribute 10%, 20% or more of their value this year. Index funds, on the other hand, engage in far less trading, resulting in far fewer gains. Look through the distribution history of Vanguard’s popular Total Stock Market fund, for example, and you won’t find a single capital-gains distribution in the past 10 years.

3. Within the world of index-based investments, exchange-traded index funds tend to be the most tax-efficient, owing to their structure. I described this in some detail a few years back. Long story short, the difference between traditional mutual funds and ETFs is that ETFs are baskets of stocks that are traded among investors but are almost never sold. Result: They generate very little, if anything, in the way of capital-gains distributions. The idea of a 6.9% distribution, like the one described above, would be unheard of for most ETFs.

4. If, for whatever reason, you choose to invest in an actively managed fund, check its historical distribution rate. Look back several years to see what distributions have looked like during both up and down years in the market. If a fund has a history of being tax-inefficient, and you still want to invest in it, try to make the purchase in a retirement account, where the distributions won’t be taxable in the year they’re paid.

5. Regardless of the type of fund you choose, don’t automatically reinvest distributions back into the fund, even in a retirement account. This is often a default setting, but it can cause unforeseen results. The wash sale rule, for example, can cause a negative tax result under certain scenarios.

A final note: Some funds carry very high distribution rates and advertise it as a feature. Here’s how T. Rowe Price describes its Retirement Income 2020 Fund: “Turn your investments into automatic income…. The fund’s managed payout strategy is designed to provide a stream of predictable monthly distributions throughout retirement, targeting 5% annually.”

Funds like this, however, are playing a bit of a shell game, in my view. That’s because they employ another kind of distribution known as a return of capital. As its name suggests, these distributions are simply returning a portion of a shareholder’s investment. They don’t represent income or capital gains. It’s as if you handed a fund company $100, and it turned around and handed $5 back to you. I see this as a gimmick. These return-of-capital distributions are shown on T. Rowe’s website. It isn’t the only fund company that does this sort of thing.

Adam M. Grossman is the founder of Mayport, a fixed-fee wealth management firm. Sign up for Adam’s Daily Ideas email, follow him on X @AdamMGrossman and check out his earlier articles.

The post Danger: Taxes Ahead appeared first on HumbleDollar.

Many financial experts believe introducing the new tax regime (NTR) has destroyed the habit of saving. But does this make any sense? The NTR has no section 80C benefits like the old tax regime. So they believe that those who were forced to buy tax-saving products and forced to “save tax” (that is lower than…

The post Has the new tax regime destroyed the habit of saving? appeared first on freefincal.

Mint, one of the best budgeting apps, shut down early in 2024.  As longtime budgeting fans, we’ve had a difficult time finding a replacement with in-depth net worth tracking that’s both affordable and easy to use. In order to find our ideal budgeting software, we spent hours researching the best budgeting apps on the market, and this round-up is the result.

Our top pick ended up being Lunch Money, but this article has reviewed a variety of software options to help you find a solution that works for you, whether you’re a flexible budgeter or envelope method enthusiast.  Check out the list below, and let us know if there are any noteworthy budgeting apps we missed by leaving a comment or emailing me. 

1. Lunch Money

Lunch Money is the newest and perhaps most interesting budgeting app on the scene. The app is the brainchild of Jen Yip, an experienced Silicon Valley developer. One of the main features that makes it unique is crypto integration, which allows you to track the value of your digital currencies alongside your other investments. There’s also multi-currency support for digital nomads and other users who spend and save in more than one currency. 

The platform has a streamlined, intuitive design, and allows you to create unlimited budgets with custom categories. Lunch Money can suggest budget amounts for you based on past budgets or spending. Unspent funds from last month can even be rolled over automatically and added to your spending targets. Automatic expense tracking is another area where this software really shines because it’s so accurate. You can even fine-tune the rules used to categorize your purchases and add tags to batch transactions purchases together, such as travel costs for an upcoming vacation.  Best of all, its basically automatic.  You don’t have to do data entry.

For easy viewing, you can filter your transactions using criteria like category, account or payee name, tags, and date ranges. Lunch Money even compiles reports on patterns it notices within your spending. You’ll receive a monthly email that summarizes your transactions and highlights your most expensive purchases. Plus, you can use the analytics tool to spot trends in your financial behavior, like which categories you tend to spend the most on. 

Getting Started

Lunch Money is web-only, which means there isn’t an official smartphone app. However, Lunch Money’s community of developers has created unofficial add-ons, including a smartphone app and Zillow integration to track real estate values. Lunch Money offers a 30-day risk-free trial and a pay-what-you-can pricing model that costs between $50 and $150 per year. If you don’t want to pay annually, there’s also a $10 per month option. Once you’re signed up, you can securely sync your bank account information using Plaid. 

You can sign up for Lunch Money here

2. Windfalls AI

While technically not a budget app, Windfalls AI, known as Windfalls, is the latest  “we negotiate your bills for you in return for a cut of the savings” company.  The model is basically tried and true, with established players like Billtrim being available.  However, what makes Windfalls interested in they have managed to work up a very slick AI which actually negotiates on your behalf.  This is interesting because the AI basically deals with doing all the calling and negotiating.

The reality is big service providers like Comcast or your credit cards are constantly looking for ways to raise prices on you, so you might as well have technology on your site that lets you reduce your costs automatically and passively.

Getting Started

Windfalls is web only.  Web only which means if you want to sign up, you’ll have to use your browser, there isn’t a smartphone app. Sign up is pretty easy.  What you need to do is navigate to their site and open an account.  Then upload all the bills you want to save money on.  The website pretty much takes care of the rest.  When their software has done its work, they’ll notify you and send you a bill.

The whole process is effective and a fresh take on an established savings model. There is some manual work, but it’s only like 20 minutes worth of effort, and you can actually save money with the software, so its worth it.

You can sign up here.

3. YNAB

You Need a Budget is one of the best budgeting apps for people who prefer zero-based budgeting, which involves giving every dollar you earn a specific job. YNAB allows you to create separate line items for your recurring bills, variable expenses, savings goals, and debt repayments. Throughout the month, you’ll assign money to each of these line items to ensure they’re all fully funded by the due dates.  YNAB also syncs with your bank account and credit cards to automatically keep track of and tag your transactions. If you overspend in a certain area, you’ll be prompted to reassign funds from other categories to avoid a financial shortfall. 

Some users say that the software is complex and has a bit of a learning curve. New users must put in some legwork to understand the methodology behind YNAB in order to use it. For example, the app has jargon you’ll need to learn, such as age of money, wish farm, and true expenses. YNAB publishes instructional articles to help you get started, and there’s an active Reddit community that can answer your questions. 

Getting Started 

YNAB has a web version and apps for your smartphone, tablet, and even your smartwatch, allowing you to budget from anywhere. You can sign up for a free trial on YNAB’s website. The app will ask you a few questions about your expenses, debt, and savings goals to set up an account tailored to your finances. Then you can further customize your budget from there. After the free trial period, YNAB costs $14.99 per month or $109 per year if you pay annually. This puts it on the expensive side of the best budgeting apps. 

You can get YNAB here. 

4. Quicken – Simplifi

Another notable mention in this list of best budgeting apps is Quicken Simplifi. Quicken Simplifi automatically creates a budget for you based on your income, recurring bills, savings goals, and planned spending. Your spending plan will adjust throughout the month based on your transactions, which the app reconciles and categorizes for you. At a glance, you’ll be able to view how much money you can spend during the rest of the month based on your purchases and savings targets. 

The app also has  in-depth financial reporting. You can track your spending patterns over time and filter transactions by payee or tags you create. There’s also an investment portfolio page that shows the value of your current holdings, investment gains and losses over time, and news updates related to your assets. Users appreciate the tax planner, which allows you to keep track of your refunds and view your projected tax liability. 

Getting Started 

Quicken Simplifi has both a web and mobile app, but no free version. The subscription costs $5.99 per month when billed annually. However, Quicken reportedly runs frequent sales, so you may be able to score a discount. It’s worth noting that Quicken Simplifi can be difficult to set up properly. One of the main complaints from reviewers is issues linking bank accounts and credit cards. Luckily Quicken offers a 30-day money-back guarantee so you can try it risk-free. 

The link to Quicken Simplifi’s website is here.

5. Rocketmoney

 

Rocket Money analyzes your spending history and automatically creates a budget for you. Plus, the app will categorize your transactions for you and alert you if you come close to exceeding any of your budget categories. You’ll also receive notifications about upcoming charges and low balances in your accounts, which helps prevent overdrafting. Rocket Money can even determine the best time of the month to set aside savings based on your cash flow. If you set up a savings account with Rocket Money, you can take advantage of the auto-savings feature, which deposits money into savings on your behalf. 

Like other top budgeting apps, Rocket Money provides spending reports and insights to help you optimize your finances. You can also view your credit score and link investment accounts to track your net worth right in the app. There’s even a bill negotiation service that saves you money on car insurance, cable, subscriptions, and more. However, you’ll be charged a percentage of the first year’s savings as a fee, which reduces the financial benefit of the program. 

Getting Started 

Although Rocket Money has a free version, it doesn’t allow you to access certain features, such as net worth tracking and custom budget categories. So you may need to upgrade to the premium subscription, which has a pay-what-you-can pricing model. Subscribers can choose a fee of anywhere from $6 to $12 per month based on their financial means. There’s also a 7-day free trial, allowing you to test the waters. Rocket Money has both a desktop and mobile version, allowing you to budget on the go.

Rocket Money’s website is here.

6. EveryDollar

EveryDollar was created by financial guru Dave Ramsey and utilizes the zero-based budgeting method, making it similar to YNAB. In the budget tab of the app, you can forecast your expected income, planned spending amounts, and savings targets. Throughout the month, EveryDollar will keep a running tally of your actual spending totals and remaining funds. 

Users with a free plan must manually input their transactions, whereas premium subscribers can connect their bank account for automatic syncing. EveryDollar also has an insights section with graphs and charts that break down your spending patterns and income fluctuations over time. This feature enables you to easily see how well you’re sticking to your budget and identify areas for improvement. Premium subscribers can also set financial goals within the app, tracking their progress and net worth along the way. Plus, they get access to a paycheck planning feature to help them manage their cash flow throughout the month as bills come due. 

Getting Started 

EveryDollar has a web version and a mobile app if you’d prefer to budget on your phone. To get started, simply create an account and answer a few questions about your goals and finances. You’ll also be asked if you want a free or premium subscription, which costs $17.99 per month or $79.99 per year. EveryDollar offers a free trial, allowing you to test out the premium features before committing. If you have questions during setup, you can visit the help center or call the support hotline.

You can find EveryDollar here. 

7. Empower Personal Dashboard (Personal Capital)

Empower Personal Dashboard is the best budgeting app for retirement planning. The software allows you to track your net worth and investments, including alternative assets like artwork and gold. Empower also displays your portfolio’s performance over time and analyzes your asset allocation to help you diversify your holdings. Plus, the app can estimate whether or not you’re on track to hit your retirement goals. It considers factors like the value of your investments, your household composition, location, projected Social Security income, and more. 

You can even test different annual savings rates to see how they’ll affect your progress. Empower also offers a savings planner to help you set concrete goals and build an emergency fund. Last but not least, the budgeting tool automatically tracks your transactions and breaks down your top spending categories to identify potential money leaks. 

Getting Started 

Empower is completely free and easy to use and works on both mobile and desktop. Keep in mind that some features are not available on the mobile app, such as the investment performance tracker. Additionally, Empower may try to upsell their premium wealth management service to certain users.

You access Empower here.

8. Pocketguard

PocketGuard is easy to use and customizable, allowing you to create 70 or more budget categories if needed. When you use up 50% or more of your budget in a certain category, you’ll get an alert to prevent overspending. PocketGuard also helps you plan for annual expenses in advance by scheduling them to recur on a yearly basis. You can even set SMART savings goals and get notified when you aren’t setting aside enough money to reach them. 

If you have debt, you can create a debt payoff plan using either the snowball or avalanche method. PocketGuard will generate a payoff schedule based on your debt balances and available funds after living expenses. You can even adjust this plan and play around with different scenarios to see how your spending choices affect your debt-free date. Additionally, PocketGuard has personal finance courses, a subscription canceling feature, a bill negotiation service, and analytics tools to help you manage your cash flow. 

Getting Started 

PocketGuard has both a web and mobile version and offers a 7-day free trial so you can test it out. If you decide to become a paying subscriber, you’ll be charged $74.99 annually or $12.99 per month. It’s also worth noting that the bill negotiation service  takes a cut of your savings as a fee.

To navigate to PocketGuard’s website go here.

9. Honeydue

Honeydue is a great solution for couples who split expenses and have multiple accounts to manage. You can link your loans, bank accounts, credit cards, and investment platforms to view your full financial picture all in one place. Couples who haven’t fully combined their finances can choose what to share with their partner. If there are certain transactions or accounts you’d rather keep separate, you can hide them to maintain your privacy. 

Honeydue makes household budgeting easy by allowing you to set spending limits for each category. You and your partner will receive alerts when you’re close to exceeding your budget. The app automatically tracks and categorizes your spending, even indicating which partner made each purchase. If you owe your partner money for takeout or other everyday expenses, you can settle the balance right in the app. The main downside is the lack of technical support. Some reviewers were frustrated that the app was buggy and no one was available to help troubleshoot. 

Getting Started

Honeydue is completely free to use. Simply download the mobile app, personalize your profile, and invite your partner to get started. Keep in mind that there’s no web interface, so you and your significant other will both need a mobile phone. 

Honeydue can be found at the Apple app store. 

10. Greenlight

Greenlight is one of the best budgeting apps for children and parents. Paired with the accompanying debit card, Greenlight teaches kids how to save and spend responsibly. From the app, guardians can set spending limits and block unsafe transactions to establish guardrails. Greenlight also allows kids to request and receive funds from their parents as needed. Plus, parents can assign chores and automatically send the payment to their child’s debit card. 

Kids can use the app to set savings goals and earn interest on their funds. They can also play fun financial games to learn more about how money works. Premium Greenlight plans come with additional safety features, such as location tracking, SOS alerts, and driving reports. There’s also an investing feature to help your child learn the power of compound interest. With your permission and guidance, they can trade stocks to get a head start on building wealth. 

Getting Started 

Greenlight’s most basic plan costs $4.99 per month and includes debit cards for up to five children. However, if you want your kids to be able to earn cash back on their purchases and begin investing, you’ll need to upgrade to the Max Plan for $9.98 per month. To access the teen driving reports and safety features, you must subscribe to the highest Infinity tier for $14.98 per month. 

Greenlight can be found on the company’s webpage. 

11. WallyGPT

WallyGPT is one of the best personal finance apps powered by AI, allowing you to manage your finances with ease. Wally can automatically track your income, spending, and upcoming bills, even reminding you of due dates to help you avoid late fees. It can also calculate your net worth to keep you updated on your financial progress. You can even ask Wally questions about your finances and receive detailed, accurate answers. For example, Wally can help you create a personalized savings plan for a big upcoming purchase, such as buying a home or car. 

You can also ask Wally to explain trends and changes in your spending to help you understand and modify your financial behavior. The app is even capable of breaking down complex financial topics like sequence of returns risk into simple terms anyone can understand. Although Wally boasts some impressive features, it gets a low rating overall. Wally received 1.7 stars on the Google App Store and 1 star in the Apple Store. Some users reported tech issues and bugginess that prevented the app from working correctly. 

Getting Started

WallyGPT has both a desktop version and a mobile app. It has wide compatibility, linking with over 15,000 financial accounts in 70 countries. You can take advantage of the free version to level up your finances without having to make room for another subscription in your budget. However, you’ll be limited to about 50 questions per day. So if you anticipate needing more support than that, consider upgrading to one of Wally’s paid subscription plans. 

12. Fudget

Fudget is a simple budgeting app that doesn’t sync with your bank accounts or automatically track your transactions. You’ll have to input each of your purchases individually, just like you would on paper or in Excel. This can help you be more mindful of your purchases and reflect on your spending. Fudget allows you to carry over recurring income and expenses from month to month, so you won’t have to waste time reentering your fixed bills constantly. 

The app also enables you to add notes to your transactions, easily search and filter through your entries, and visualize your spending through charts. There’s even a calculator and running tally of your purchases to help you avoid overspending. Due to its pleasant user experience, Fudget received a high rating of 4.7 stars with over 600 reviews. But the lack of automatic expense tracking could wreak havoc on your finances if you slack on entering your purchases or “fudge” your spending. 

Getting Started

Fudget works on IOS, Android, Windows, and Mac. The basic version gives you 5 different budgets and 250 entries for free. If you need more entries, you can upgrade to the premium version for $19.99 annually. Not ready to commit to a full year? You can take advantage of the 7-day free trial or opt for the six-month plan instead, which costs $14.99.

You can download the app for Android or Iphone on their website. 

13. CountAbout

CountAbout is one of the best budgeting apps for solopreneurs, allowing you to manage your company’s finances and your own in one place. For an extra fee, you can send invoices to customers and upload receipts to track your business expenses. You can also create a bill payment schedule to help manage your cash flow. 

The premium version of the app automatically downloads data from your bank accounts, credit cards, and investment accounts. However, it doesn’t categorize transactions for you, so you’ll have to manually reconcile them. Users can create as many budget categories as they want and split transactions as needed. There’s also a useful savings projection tool that shows you how small spending reductions can speed up your financial progress. 

Getting Started 

CountAbout has a web version and a mobile app. You can try the software risk-free for 45 days to make sure it’s a good fit. The basic plan costs $9.99 per year, billed annually. If you want automatic bank syncing, you’ll need to upgrade to the premium plan for $39.99 per year. Invoicing costs an additional $60 per year, and the ability to upload receipts to transactions costs $10 per year. 

CountAbout can be accessed at the apps webpage.

14. Qube Money

 

Qube Money aims to provide a more regimented budgeting system complete with an app, bank account, and debit card. The app utilizes the envelope budgeting method to help you plan your spending in advance. You’ll create envelopes called “qubes” for each of your bills, discretionary spending categories, and savings goals. Then you’ll fund these envelopes using the cash in your Qube bank account. If needed, you can transfer money between qubes at any time. Qube’s proactive spending feature helps ensure you stick to the plan you create. The linked debit card maintains a $0 balance until you select which envelope to spend from. 

Qube’s premium plan also allows you to add a companion to your account. Your companion will receive their own debit card so they can spend from the joint bank account and shared qubes. The premium subscription also allows you to create unlimited qubes, schedule recurring transfers, and set up a plan to fund your qubes automatically every month. If you want to add more than one companion to your account, you can sign up for Qube’s family plan. It allows you to give debit cards to up to five people in your household. 

Getting Started 

After creating your account, you can choose the level of features you need. While there is a free option, access to premium features such as subscription management and the ability to add a companion can be unlocked for $12 per month. If you have a larger household, consider upgrading to the family plan for $19 per month. Keep in mind that each card holder will need a smartphone with the Qube app to select the appropriate envelope and load their debit card. The Qube app works with Apple and Android.

QubeMoney can be found here. 

15. Buckets 

Billed as a “Private Family Budgeting App”, Buckets is one of the best budgeting apps for the envelope method. It allows you to set aside money in various “buckets” for recurring bills, discretionary spending, savings goals, and debt repayments. As you spend throughout the month, you’ll manually enter your transactions or upload your bank statements. Then you’ll reconcile each transaction by indicating which “bucket” the purchase is associated with. Keep in mind that Buckets doesn’t automatically sync with your bank unless you sign up for SimpleFIN Bridge, which costs extra. 

Getting Started 

Buckets has a very flexible free trial that they advertise as having no time limit. When you’re ready to buy the software, you’ll only owe a one-time payment of $64. The software is designed for local computer use for increased data privacy. It’s compatible with Macs, PCs, and Linux machines. There’s also a mobile app that allows you to input your purchases on the go, which can be synced with your computer software for real-time tracking. 

Buckets can be found at budgetwithbuckets.com.

16. Tiller

One of the best budgeting apps for Excel lovers is Tiller, which connects your bank accounts to your spreadsheets. Tiller automatically transfers your financial data to Excel or Google Sheets, allowing you to easily track your transactions, income, debt, and savings balances. Tiller categorizes your purchases for you based on rules you set and comes with custom templates to help you personalize your spreadsheet. You’ll also receive a daily email that summarizes your recent transactions and balances, giving you an updated picture of your finances. 

Tiller is completely ad-free and has a collaboration feature that allows you to share your budget with a partner in real-time. There’s a library of help guides, a customer care team, and a peer community to support you if needed. 

Getting Started

Tiller can be integrated with Google Sheets or Microsoft Excel depending on your preference. You can access your budget spreadsheet via your desktop or the mobile app version of Excel or Google Sheets. Tiller has a 30-day free trial and charges $79 per year thereafter.

Tiller can be found here. 

17. Goodbudget

Last in the list of the best budgeting apps, Goodbudget is home budgeting software based on the envelope budget system.  The main idea is you use the software to make digital “envelopes” for all your budgeting categories – housing, food, automotive, insurance, etc.  Then you use the app to allocate an amount of money up front for each envelope.  This allows you to plan your spending, not just track it.  Planned spending is usually a good idea, especially for large savings or debt reduction goals. 

While Goodbudget is well reviewed (4.6 stars out of 5 in the App Store), the app is high maintenance.  It doesn’t automatically update your bank account and handle transactions for you.  But, data categorization and some other features are semi automated.  The software does have features that lets two people synchronize budgets, making the app good for couples.   It is available on the web, or on Android or iPhones.

Getting Started

Frequently Asked Questions

Are budget apps worth it?

You probably want to create and stick to a budget to save money. So it may seem counterintuitive to pay for budgeting software and add another subscription to your monthly expenses. However, many people find that they actually come out ahead, saving more money than the app costs. For example, You Need a Budget says that new users save an average of $600 in their first two months, which more than covers the $109 annual fee.

According to an Intuit survey, more than 60% of respondents didn’t know how much they spent in the previous month. The best budgeting apps sync with your bank account and credit cards to automatically track and categorize your transactions. They also have handy charts and graphs that can help you understand your spending at a glance, enabling you to stay on top of your finances. Although it’s possible to manage your money with just an Excel sheet, the additional time-saving features make the best budgeting apps worth the cost.

What is the best alternative to Mint?

Still grieving the loss of Mint? Many people loved the app’s streamlined interface, which showed them their whole financial picture in one place, from investments to average monthly spending. Lunch Money is one of the best budget apps for former Mint users due to its pleasing design, ease of use, and comprehensive financial tracking. Lunch Money automatically syncs with all of your important financial accounts, allowing you to keep tabs on your spending, investments, and bank account balances. You can even monitor your crypto holdings and outstanding debt all from the same app, giving you a bird’s eye view of your finances.

What’s the best budgeting app to help with finances?

The best budgeting app for you depends on your financial needs and money management style. If you and your partner are trying to get on the same page about money, apps designed for couples like Honeydue and Monarch Money may work for you. For individuals who want to keep tight control over their spending, zero-based budgeting apps like YNAB and EveryDollar are worth considering. They help you decide how to spend each dollar you earn in advance, helping you create a strict game plan for your money. People who prefer a flexible app that works with any budgeting style will enjoy Lunch Money, our top pick.

What is the best budgeting method?

One of the best budgeting methods to help you reign in your spending is the 50/30/20 rule. It involves setting aside 50% of your income for needs like housing, food, and utilities. Roughly 30% of your income can be allocated toward wants like vacations and hobby purchases. The remaining 20% of your salary should be funneled into savings and investments. If needed, you can adjust these percentages to suit your unique financial situation. For example, if you have outstanding student loans, you might consider reducing your entertainment spending to clear your debt faster.

The Bottom Line 

Most of us don’t have enough time to meticulously comb through our bank statements and figure out exactly what we’re spending. Many of the best budgeting apps will automatically track and categorize your transactions to make it easier to manage your money. Even if the budgeting software you choose is pay-to-play, it will likely save you more than it costs by giving you better financial clarity and control. 

Author’s Contact Information: 

Vicki Munroe

Email: [email protected]

James Hendrickson

Email: [email protected]

Phone: (202) 468-6043

Material Connection Disclosure: Some of the links in this article are “affiliate links.” If you click on the link and make a purchase or sign-up, Saving Advice will receive an affiliate commission – which will help keep the site going. We only recommend products we think will add value to savingadvice.com readers. We are disclosing this in compliance with Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Let’s be honest, no one likes paying income tax. And you definitely don’t want to pay more than your fair share – but many people do. Taking advantage of income tax deductions is one of the best tax-saving strategies that you should know about to lower your tax bill every year.

Here’s how you can do that.

Do You Even Know What a Tax Write-off Is?

Tax deductions reduce your taxable income. Less income means lower taxes. Seems simple, right?

Deductions don’t mean you’ll get a dollar-for-dollar reduction in your taxes. A $100 tax deduction means that you’ll pay taxes on $100 less income, not that your tax bill will be $100 less. But it still lowers your taxes, and that’s a win.

Everyone who files an individual income tax return gets at least one deduction—the standard deduction—but many people have more deductions than that. 

Different types of deductions have different effects on your overall tax bill, and knowing the differences between these types of deductions can help you prioritize those that will deliver a bigger tax-saving impact.

Above-the-Line Deductions: What They Are and How to Use Them

The most valuable income tax deductions are above-the-line deductions, meaning they reduce your income before the calculation for Adjusted Gross Income (AGI). 

That’s why they’re called “above-the-line”: They appear on your tax return above the line for adjusted gross income. 

Since many other tax deductions and credits are limited by AGI, using these special deductions to lower AGI may help you gain eligibility for other lucrative tax-saving measures. 

Some examples of these above-the-line deductions are:

• Student loan interest: Taxpayers with qualified student loans may be able to deduct the interest paid on those loans, up to $2,500 per year. The IRS has a tool for this called “Can I claim a deduction for student loan interest?” on www.irs.gov.
• Retirement contributions: If you contributed to a traditional IRA, you can deduct that as an above-the-line income tax deduction. This deduction might be limited if you (or your spouse, if filing jointly) have access to a workplace retirement plan and your income exceeds the IRS limits.
• Educator expenses: Educators can deduct up to $300 ($600 if married filing jointly and both are teachers) of the money you paid out of pocket for classroom supplies or similar expenses. This deduction is available for K-12 teachers, counselors, and principals who work at least nine hundred hours during the school year. Qualifying expenses include things like books, software, equipment, and professional development courses.
• Self-employed health insurance: If you’re self-employed and pay for your own health insurance, you may be able to deduct the full year’s premiums with this income tax deduction. You can’t take it if you had access to an employer-based plan (including through your spouse). But if you had no other option and paid your own health premiums, you can deduct your medical, dental, and vision insurance and possibly long-term care premiums.
• Half of self-employment tax: Self-employed taxpayers get hit with the 15.3% self-employment tax, and half of that can be taken as an above-the-line deduction. If you file Schedule SE (the form that calculates and reports any self-employment taxes due) with your tax return, you’ll be able to deduct 50% of the calculated tax here, with no restrictions based on income or outside factors. 

You can claim above-the-line deductions along with your standard or itemized deductions.

The Standard Deduction – What It Is and Why You Want To Use It

If you’ve ever done your own taxes, you probably know about the standard deduction. It reduces adjusted gross income by a specific amount set by the IRS so that every household will have at least some income that’s not subject to federal income taxes—no questions asked. 

The amount of the standard deduction depends on your filing status (like single or head of household), age, dependency status, and whether or not you’re blind. The deduction gets subtracted from your AGI to get to your taxable income.

For tax year 2024, the tax return you’ll file in 2025, the standard deductions based on filing status are:

Single taxpayers who are over sixty-five or blind get additional standard deductions including an extra $1,950 standard deduction, and an extra $3,900 if they’re over sixty-five and blind. Married taxpayers who are over sixty-five or blind get an extra $1,550 standard deduction each, and an extra $3,100 each if they’re over sixty-five and blind.

Dependents—meaning people who are claimed as dependents on someone else’s tax return—get a reduced standard deduction. The reduced deduction is either a flat $1,300 or their earned income (such as from a job) plus $450, up to the amount of the regular standard deduction.

In some cases, a taxpayer may not be allowed to take the standard deduction. The most common situation is for those who are married filing separately, where if one spouse itemizes, they both must itemize. 

Itemized Deductions: These Things Can Add Up 

Unlike the standard deduction, which is the same for everyone, itemized deductions vary greatly by each taxpayer’s personal situation.

These itemized deductions capture expenses paid for during the year that can be used to reduce taxable income and taxes owed. They get listed—itemized—on Schedule A and filed along with your Form 1040. 

Depending on the expenses you have each year, itemizing deductions can add up to quite a bit of savings on your final tax bill. 

You can choose to take itemized deductions in any tax year that would give you a bigger tax break than using the standard deduction. Plus, you can switch back and forth from year to year.

As of 2024, the most commonly taken or “big five” itemized deductions are: 

• Unreimbursed medical expenses in excess of 7.5% of AGI
• State and local taxes (SALT) up to $10,000 
• Charitable donations up to 60% of AGI 
• Interest on mortgage loans (up to $750,000 used to buy, build, or substantially improve your home)
• Unreimbursed casualty and theft losses from federally declared disasters that exceed 10% of your AGI

There are some other allowable itemized deductions that may apply in certain situations. 

For example, you can deduct gambling losses to the extent of gambling winnings included in your income. And people with disabilities can deduct impairment-related work expenses.

There are additional rules for all of the itemized deductions and details on what can and can’t be included in each category, and what records are required by the IRS (in case you get audited). 

You can find full details in the instructions for Schedule A on the IRS website at www.irs.gov.

Little Known Deductible Medical Expenses

Along with payments for doctors, dentists, and prescriptions, a lot of other eligible expenses qualify for a medical expenses deduction. 

They include:

• Glasses or contacts
• Purchase, training and maintenance of service animals
• Mileage for going to appointments
• Travel and transportation costs related to medical appointments and procedures
• Acupuncture
• Chiropractors

Make sure to include everything you can to get the most out of this deduction, especially in years you know you’ll have extra medical expenses (like the year you have a baby, for example, or have a surgery scheduled). 

Understanding Your Taxes Saves You Money

Taxes are inevitable. But you can use these income tax deductions to legitimately have a lower tax bill and keep more of your hard-earned cash every year.

I explain how you can use more tax-saving strategies, as well as how the tax system works and how it relates to your overall financial state in my latest book, Taxes 101. 

I show you how different tax laws apply to you and how they can lead to deductions and credits that will reduce your tax bill. I also show you how to use information about the tax system to make better choices for your overall financial wellness.

Click on the button below to learn more about Taxes 101 and get your copy now.

The post How Income Tax Deductions Can Save You Money This Year appeared first on Michele Cagan, CPA.

If you’re looking to cut costs without sacrificing quality, buying in bulk can be your secret weapon. Amazon offers a wide variety of items that come with bulk discount options, making it easier than ever to save money on essentials. From household staples to pantry must-haves, purchasing these products in larger quantities helps you get more bang for your buck. Here are eight Amazon products you should always consider buying in bulk to maximize your savings.

Household Cleaning Supplies

Cleaning supplies are items you’ll always need, so why not take advantage of bulk discounts? Amazon often has great deals on items like paper towels, toilet paper, and multipurpose cleaners. Buying these in bulk not only reduces the per-unit cost but also means fewer trips to the store. Plus, you’ll never have to worry about running out when you need them the most.

Pet Food and Treats

If you have a furry friend at home, you know how quickly pet food and treats can add up. Purchasing these products in bulk on Amazon can help you score significant savings. Brands often offer discounts when you buy larger quantities, and the convenience of having them delivered to your door is a bonus. Your pets will be happy, and so will your wallet.

Pantry Staples

Pantry staples like pasta, rice, and canned goods are perfect for bulk buying on Amazon. These non-perishable items have a long shelf life, making them ideal for stocking up. Buying in larger quantities helps you take advantage of bulk discounts while ensuring your pantry is always full. Plus, it’s a great way to save time and avoid the hassle of frequent grocery store runs.

Baby Essentials

Parents know that baby products like diapers, wipes, and formula can quickly become a major expense. Amazon’s bulk discount options on these items can be a lifesaver for families. You can stock up on essentials without breaking the bank, and the convenience of home delivery makes it even easier. With these savings, you’ll have a little extra room in your budget for other baby needs.

Office Supplies

Office supplies like printer paper, pens, and sticky notes are used constantly, whether you’re working from home or at the office. Buying these items in bulk on Amazon ensures you always have what you need on hand. It also helps you save money by taking advantage of lower prices for larger quantities. The next time you’re running low, consider buying a bulk pack instead of single items.

Coffee and Tea

For those who can’t start the day without their morning cup, buying coffee and tea in bulk is a smart choice. Amazon offers bulk discounts on popular brands, letting you save money on your favorite beverages. Whether you prefer whole beans, ground coffee, or tea bags, you’ll enjoy a better price per unit when you buy in larger quantities. It’s a great way to keep your kitchen stocked and your caffeine cravings satisfied.

Snacks and Beverages

Snacks and drinks are easy to buy in bulk, especially when you’re shopping for a family. Amazon often offers great deals on bulk packs of chips, granola bars, and bottled water. Stocking up on these items can save you time and money, making it easy to grab a quick bite when you’re on the go. Bulk buying means fewer trips to the store and more savings in your pocket.

Vitamins and Supplements

Vitamins and supplements are another category where buying in bulk can lead to big savings. Amazon frequently offers bulk discount options on popular brands, making it easier to stick to your wellness routine without overspending. By purchasing larger bottles or multi-packs, you reduce the overall cost per pill or serving. Plus, you won’t have to worry about running out and needing a last-minute trip to the store.

Start Saving with Bulk Buying

Buying in bulk on Amazon isn’t just about convenience; it’s a smart way to save money on the products you use every day. By planning ahead and taking advantage of bulk discount options, you can keep your home stocked and your budget intact. Make a list of your essentials and see how much you can save on your next Amazon haul.

The post 8 Amazon Products You Should Always Buy in Bulk for Big Savings appeared first on Grocery Coupon Guide.