New polling by market researchers at Ipsos suggests that 90 per cent of Canadians are plan to use at least one method of cost-cutting in 2024, in response to sustained cost of living pressures felt throughout the country.
If you find yourself among that 90 per cent, trying out a personal finance budgeting app might be one way to get started trying to organize your finances.
Although Intuit Inc. announced late last year it was shutting down its popular Mint budgeting app, there are still plenty of other options available to Canadians.
The YNAB (You Need a Budget) mobile and desktop software is one such option.
Founded by United States accountant Jesse Mecham in 2004, YNAB is a subscription-based product that offers a hands-on "envelope" style of budgeting.
The envelope method, as described by Capital One, is a “system that focuses on discretionary spending — basically the money that's left over after necessities and fixed expenses... are paid.”
Although envelope-styling budgeting is quite common, YNAB tries to distinguish itself by applying four rules to the system for users to keep in mind when budgeting.
The first rule is to “give every dollar a job,” the company's website explains.
“Every time you get paid, ask yourself, ‘What do I need this money to do before my next paycheque?’ and assign every dollar you have available to an expense category until there are zero ‘unemployed’ dollars left.”
The second rule in YNAB's program is to “embrace your true expenses.”
“Future-proof your finances by anticipating large, non-monthly expenses ... and breaking them down into smaller, manageable chunks of monthly saving instead,” the company's website reads, adding this rule is helpful when it comes to managing holiday gift-giving.
“Turning those big, scary expenses into smaller monthly bills helps you make fully informed spending decisions.”
YNAB's third rule is to “roll with the punches.”
“If you run out of money in one category but still need to make a purchase, just move money from another category to cover it.”
“Plans change. Managing your money shouldn't feel punitive or restrictive.”
YNAB's final rule, or suggestion, is to try your best to make your money last longer.
“Increase the time between when you earn your money and when you spend it,” the company says online. “Eventually, you'll be paying bills with money you earned more than 30 days ago. The end result is more breathing room in your financial plan.”
Although YNAB's software comes with a 34-day free trial, annual plans cost $99 USD, or $14.99 USD per month.
Financial forecasting
If the envelope method of personal finance planning isn't for you, another option is Pocketsmith, a software that, among other things, provides its users with financial forecasts up to 60 years into the future based on "what-if" scenarios.
Although Pocketsmith is also a subscription-based product, the company does offer a free version.
The free version of the software allows users to have two customizable dashboards, which can be used “to highlight what matters most to you,” the company's website says.
“Whether it's tracking a side hustle, or overseeing family spending, make it your own.”
With each successive level of subscription comes access to more and more features with the software; however, any level of subscription (including the free version) comes with a transaction tracking and overall budgeting feature, as well as reports and visualizations.
“Basic, ‘cookie-cutter’ solutions may not have felt right for you,” Pocketsmith boasts online. “This is why we designed a comprehensive set of features to give you the flexibility you're looking for.”
Pocketsmith's free version limits financial forecasting to just six months ahead, which is significantly less than the 10-year forecasting provided in the cheapest subscription option of $119.88 USD per year, or $14.95 USD per month.
Talk to your bank
If an app just isn't something you're interested in — or the idea of paying for one is antithetical to your financial goals — an easy place to start is to meet with a financial advisor with your bank.
All banks with branches in St. Albert have advisors on staff with whom customers can book appointments.
For example, TD Bank allows existing and potential customers to schedule an appointment with an advisor online, and you can select from a list of topics you'd like to discuss, such as retirement planning, investments, and overall financial goals.
