Rather than an app that is too... easy. I find it more interesting to download my expenses from my one bank account at the end of the month and assign them to categories myself. I find it's a more intimate / thoughtful way to actually do it in excel. It's like the Japanese Kakaibo (spelling?) where its the physical interaction with your numbers that is essential. Writing down on paper, etc. I'm naturally cheap and old enough to not do this daily. Once a month is good. Just found this interesting sub.
Thank you for sharing, David. The extension to the budget app question is knowing how much you can spend in the future to maximize your living standard.
That “little app man on your shoulder” analogy was spot on. That’s exactly why some people avoid budget apps, they don’t want a digital nag reminding them of every latte purchase. But the reality is, financial literacy doesn’t always lead to better financial outcomes (as your research points out). High earners often outsource the hassle, while others just prefer a hands-off approach.
Your post got me thinking more about using a budgeting app. I wasn’t worried about sharing my data with third parties—it was more about not finding the right one.
After some research, I’ve found an app that allows me to integrate all my accounts and manage multiple currencies. I’m going to give it a try! You’ve convinced me—thank you!
I really enjoyed reading this and am surprised to learn about the underwhelming interest in budgeting apps! Building the Accountable budgeting app with my husband completely transformed our approach to budgeting and financial wellness. We set out to build an app that makes shared budgeting easy for couples, families, and groups. We wanted users to be able to personalize their budgets, set their own categories, and sort their own transactions. By using and testing the app I learned that it takes time to nail down a budget and understand your spending habits. After using Accountable for a full year I was able to see clearly where our money was going and felt empowered to make positive changes. I wonder if people don't stick with budgeting software for long enough for it to make an impact?
I would love to hear more about your vision for a personal finance economics app!
I would appreciate any thoughts or feedback you may have! You can email me at ellen@accountable.money or send me a direct message on Substack. Thanks so much for checking it out!
I've yet to meet anyone that likes budgets... except for maybe the occasional engineer-type.
Despite this, I think these apps are valuable beyond just their ability to create and track against a budget.
- They make it easy to monitor your accounts for fraudulent activity
- They make it easy to see and understand your cash flow, even at a high level.
I've met so many people over my 30+ years as a financial advisor that have no real clue how much they spend or where their spending is going
And while this technology makes it easy to create dozens of spending categories and get into the weeds quickly, I think it's best to keep it as simple as possible with fewer categories which makes it more manageable and less of a chore
Are you spending more than you're making? If so, where can you make adjustments?
Are you spending less than you're making? If so, how and where should you deploy your excess cash flow... to build up savings, accelerate debt reduction, something else?
The more we understand where we are (including our spending) today, the easier we can look ahead to where we want to go.
Regarding the level of interest in these apps, I've made multiple offers to my clients to use one of these apps at my cost, and have had virtually zero interest.
In the comments, "Neil," mentioned the reluctance to give financial information to a third-party. The reason is valid for many, but not a problem for me. Someway, somehow, third-party developers need to confront this objection heads-on during their sales process.
Most of my clients are in the 50s and 60s or older, so I suspect it's mostly resistance to change... so I would say it's more of a challenge to change up how they've been managing - or not managing - their personal finances
The apps have gotten super intuitive, so I don't think it's a learning curve issue
Rather than an app that is too... easy. I find it more interesting to download my expenses from my one bank account at the end of the month and assign them to categories myself. I find it's a more intimate / thoughtful way to actually do it in excel. It's like the Japanese Kakaibo (spelling?) where its the physical interaction with your numbers that is essential. Writing down on paper, etc. I'm naturally cheap and old enough to not do this daily. Once a month is good. Just found this interesting sub.
Thank you for sharing, David. The extension to the budget app question is knowing how much you can spend in the future to maximize your living standard.
That “little app man on your shoulder” analogy was spot on. That’s exactly why some people avoid budget apps, they don’t want a digital nag reminding them of every latte purchase. But the reality is, financial literacy doesn’t always lead to better financial outcomes (as your research points out). High earners often outsource the hassle, while others just prefer a hands-off approach.
My goodness, we are on the same page!
Your post got me thinking more about using a budgeting app. I wasn’t worried about sharing my data with third parties—it was more about not finding the right one.
After some research, I’ve found an app that allows me to integrate all my accounts and manage multiple currencies. I’m going to give it a try! You’ve convinced me—thank you!
I think one reason for the reluctance to use these apps is a concern about giving third parties access to our financial accounts.
A preference many have, especially those over 60.
I really enjoyed reading this and am surprised to learn about the underwhelming interest in budgeting apps! Building the Accountable budgeting app with my husband completely transformed our approach to budgeting and financial wellness. We set out to build an app that makes shared budgeting easy for couples, families, and groups. We wanted users to be able to personalize their budgets, set their own categories, and sort their own transactions. By using and testing the app I learned that it takes time to nail down a budget and understand your spending habits. After using Accountable for a full year I was able to see clearly where our money was going and felt empowered to make positive changes. I wonder if people don't stick with budgeting software for long enough for it to make an impact?
I would love to hear more about your vision for a personal finance economics app!
I'd like to learn more about your app, Ellen. Please point me to a good starting point, or is it in the App store?
Here is the link! https://apps.apple.com/us/app/accountable-budgeting/id1542898267
I would appreciate any thoughts or feedback you may have! You can email me at ellen@accountable.money or send me a direct message on Substack. Thanks so much for checking it out!
@Accountable, Ellen do you have a desktop version of your application, or mobile only?
Mobile only right now. Desktop and Android versions are in progress.
Will take a look. Give me a few days.
I've yet to meet anyone that likes budgets... except for maybe the occasional engineer-type.
Despite this, I think these apps are valuable beyond just their ability to create and track against a budget.
- They make it easy to monitor your accounts for fraudulent activity
- They make it easy to see and understand your cash flow, even at a high level.
I've met so many people over my 30+ years as a financial advisor that have no real clue how much they spend or where their spending is going
And while this technology makes it easy to create dozens of spending categories and get into the weeds quickly, I think it's best to keep it as simple as possible with fewer categories which makes it more manageable and less of a chore
Are you spending more than you're making? If so, where can you make adjustments?
Are you spending less than you're making? If so, how and where should you deploy your excess cash flow... to build up savings, accelerate debt reduction, something else?
The more we understand where we are (including our spending) today, the easier we can look ahead to where we want to go.
Regarding the level of interest in these apps, I've made multiple offers to my clients to use one of these apps at my cost, and have had virtually zero interest.
Thanks for another great article, Robert
They do not have zero interest, :)
Do you think it is difficult for them to use, or this habit is just not fit in their finance life?
In the comments, "Neil," mentioned the reluctance to give financial information to a third-party. The reason is valid for many, but not a problem for me. Someway, somehow, third-party developers need to confront this objection heads-on during their sales process.
My clients haven't shared any concerns about linking financial accounts to these types of apps, but it could still likely be a factor...
Most of my clients are in the 50s and 60s or older, so I suspect it's mostly resistance to change... so I would say it's more of a challenge to change up how they've been managing - or not managing - their personal finances
The apps have gotten super intuitive, so I don't think it's a learning curve issue