Staying on top of your money is essential—life can feel simpler when you know how to manage personal finances. However, handling finances is easier said than done. Between bills, saving, and budgeting, money management takes time and effort.
But what if you could build a simple, always-on system for budgeting? With the right technology for managing finances, that’s exactly what you can do. As a result, you’ll notice that:
- Using the right budgeting app gives you a clearer picture of your financial health
- Establishing practical budget frameworks and buffers makes spending more predictable
- Leveraging artificial intelligence (AI) helps personalize your financial plan
- Following security best practices keeps your money safe and protects your accounts
In just 10–15 minutes, you can set up a money-management system on your smartphone or tablet. It’s a convenient way to set a budget, track your spending, plan ahead, and even manage your investments to make the most of your money.
Pick a budgeting hub that syncs to your accounts
It’s helpful to track all your spending and savings in one place. A budgeting app that tracks your income puts you in the driver’s seat.
There are dozens of budgeting apps. Look for ones that sync with your credit cards, checking accounts, and savings accounts so you can track every cent. Also, choose apps that sync across devices (smartphones, tablets, laptops) so you can check your accounts anywhere.
Many apps group your purchases into categories like dining out, entertainment, and transportation. Some let you personalize categories, so you can start budgeting for the holidays or set aside money to travel on a budget. Knowing where you spend your money keeps you informed.
Any app is more helpful when you have a budget framework, such as the 50/30/20 rule. Let’s say you make $3,000 a month. You’d allocate 50% ($1,500) to needs (rent or mortgage, utilities, groceries), 30% ($900) to wants (dining out, concerts, hobbies), and 20% ($600) to savings or debt payoff (credit cards, student loans).
If you’re a gig worker and your income fluctuates, create a conservative monthly average. Calculate it by reviewing several months (or a year) of income and using your lowest-earning month as the baseline. Set aside money for essentials first, and when you have a higher-earning month, move the extra money to savings as a buffer.
Regardless of your income, you can set up sub-accounts in your financial app for “sinking funds.” This method works by:
- Putting a small amount from each paycheck (or as you earn) into separate sub-accounts
- Using the money to cover future expenses like travel, car maintenance, and holiday shopping
- Estimating each expense and the time frame to fund it
Together, the right apps and budget frameworks make it easier to understand your finances. From a single app, you can see how your money moves, set up spending alerts, create financial goals, and more.
Next up: automate.
Automate savings and bill payments
Automation is a major time-saver. Rather than spending hours every month paying bills and setting aside savings, create rules in your apps to move money automatically.
Recommended options for streamlining your finances include:
- Direct deposit – Automatically send a set amount, like $200, or 10% of your paycheck to savings, and the rest to checking.
- Round-ups – A simple way to save without extra work. Look for apps that round each purchase up to the next dollar—some automatically invest the difference.
- Scheduled transfers – Use your banking app to transfer a specific amount to savings on a schedule—like $100 each payday.
- Automated bill payments – Use your bank’s app or the biller’s website to schedule payments for credit cards and other monthly bills. For your wireless bill, use AutoPay to pay it each month and avoid late fees. For credit cards, set AutoPay to the statement balance to avoid interest.
These features make it easier to manage expenses and save. However, there are a few things to consider.
Minimum monthly credit card payments can change. If your AutoPay is a fixed amount and the minimum increases, you could incur late fees and extra interest. Also, keep enough money in your account to cover automated payments and avoid overdraft fees. It’s also a good idea to periodically review subscriptions and services and cancel any you no longer use.
You can also automate debt payoff methods:
- Snowball: Pay your smallest debt first for motivation. Once it’s paid off, roll that payment into your next-highest debt to create a “snowball” effect. For example, if your lowest debt is $1,000, set an automated payment for the $100 minimum payment plus an extra $100 to pay it off faster. After it’s paid off, add that extra $200 to the next-largest debt’s payment.
- Avalanche: Tackle the highest annual percentage rate (APR) first to save interest. Say your highest-APR card is 20% with a $10,000 balance. Paying $300 per month takes approximately 49 months and costs roughly $4,700 in interest. Instead, an automated $500 per month takes about 25 months and totals around $2,500 in interest.
Automation is a definite time-saver, and when you combine it with AI, you can take your money management to the next level.
Use AI-powered insights to spot trends and optimize goals
Back in the day, you might’ve needed a financial advisor to answer, “How can I budget my money better?”
Now, you can ask AI virtually any personal finance question. It all starts with the right prompt. What if you want to know how to pay off your credit card debt in a short time frame?
Try: “I have $10,000 in credit card debt and want to pay it off as soon as possible. I make $50,000 per year, and here’s a list of my monthly expenses. I have four credit cards with the following balances, interest rates, and minimum monthly payments. Provide three reasonable plans to eliminate my debt, including different payoff methods, a monthly payment schedule, and timelines for when I’ll be debt-free.”
With some apps, you don’t even need prompts—built-in AI technology can help take the guesswork out of budgeting. These AI tools can recognize patterns, forecast cash flow, flag unexpected activity, create monthly spending summaries, provide personalized advice, and adjust financial goals.
This is helpful when:
- Categorizing your past two months of transactions with the 50/30/20 rule to recognize overspending
- Finding ways to cut $200 per month without affecting essentials
- Projecting your next six weeks of cash flow based on your average spending
Whatever you use AI for, remember that it has limitations, including “hallucinations”—when a model presents false information as true. Always double-check before approving suggested changes or transferring money.
Regardless of the AI tools you use, following security best practices is essential.
Secure your money: Passwords, MFA, and device safety
Using technology to manage your personal finances comes with risks like data breaches, hacks, and privacy issues. To protect your accounts and sensitive information, follow these security best practices:
- Use unique passwords (a mix of numbers, letters, and special characters) for each account.
- Turn on multi-factor authentication (MFA) on all banking and finance apps.
- Set alerts for large or international transactions.
- Read the privacy policies for every account you create to understand how your information is stored and used.
- Update your apps and operating system (OS) regularly to patch security vulnerabilities.
- Learn how to remotely wipe your device in case of loss or theft.
With these security tips in place, you can focus on maintaining your routine.
Build your “money routine”
Setting up your accounts is the most time-consuming part of tech-based money management. Once that’s done, it’s all about maintenance.
Consider separating your money routine into three categories:
- Daily – Check notifications for unusual activity and approve any time-sensitive payments. Keep an eye on balances and upcoming bills.
- Weekly – Spend about 15 minutes recategorizing purchases and confirming next week’s cash flow.
- Monthly – Take 30-45 minutes to review trends from your app’s dashboard. Review credit utilization and credit score trends. Adjust your goals and automated transfers as needed.
This money routine covers the essentials of personal finance management. With your all-encompassing budget app, you can track your spending and automate your savings. Meanwhile, AI insights keep you informed, and the right security protocols help keep everything safe.
Whatever your budget or situation, you can use technology to manage your finances—it all starts with the right device. Check out deals on brand-new devices with built-in AI that make it easier to implement your financial plan. Paired with the right wireless plan, you can receive alerts, adjust your budget, and find the best financial apps—anytime, anywhere. Plan for—and reach—your financial goals with smart budgeting tips and the right tech from us.
