Do you want to buy a house but need to save money? Some apps can make the process easier, less stressful, and even fun if you wish to save money for a down payment or to pay off debt. Let's look at three apps to help you save money to help you buy your first house.
You Need a Budget App (YNAB)
The YNAB app might be the best way to organize your finances if you want to save money or pay down debt. According to YNAB's website, app users save an average of $600 within two months and over $6,000 over the first year. The app is free for the first 34 days then you can sign up for an annual or monthly plan ($8.25-$14.99/mo.).
- Recover from debt
- Save loads of money
- Crush financial goals
With YNAB, you learn how to Give Every Dollar a Job™ by assigning it to digital envelopes. You plan ahead, so you know where your money is going and your saving priorities (ex, a new house). As you save money, you'll learn how to spend money that's 30 days old, which will help reduce the stress many of us associate with money. The YNAB plan is flexible, so you can adjust where you're saving and spending money as needed, making it far more enjoyable.
"An estimate of income and expenditure for a set period of time."- Oxford Languages Dictionary
The EveryDollar app is a free budgeting tool created by Dave Ramsey, a personal finance consultant. EveryDollar makes it easy to track your expenses and spending habits while saving money. A premium paid version of the app goes beyond the basics, allowing you to link your budget to your bank account and get recommendations on how money should be spent based on your history ($6.66-$12.99/mo.).
- Zero-based budgeting
- Save with "sinking funds"
- Easily adjust your budget
EveryDollar has you organize your expenses into Four Walls (food, shelter, transportation, and utilities) plus other expenses that crop up (eating out, insurance, childcare, etc.). The app helps you determine a zero-based budget by adding in every source of income and then subtracting your expenses until your budget ends up at zero. Track your expenses and easily add surprise expenses when needed (ex., new car battery). If you're overspending in one area, you can adjust your budget in another area to stay on track with your savings goal.
You can also set "sinking funds" in the EveryDollar app to save small amounts of money towards significant future expenses, like the down payment on a house. You create a line item in the app, set the amount of money you want to save monthly, and by the time you need to pay your down payment, you've got the money saved. Dave encourages you to plan for three months to get used to budgeting through the app as you gain control of your finances.
"When you budget every month, you're giving your money purpose. You're telling it where to go so you're not left wondering where it went. You're. Taking. Control." Dave Ramsey
Rocket Money App
If you want to manage your money successfully and reach your financial goals faster, the Rocket Money app has you covered. The Rocket Money app will help you save for a house or anything else by helping you create a savings goal, choosing how often you want to contribute to it, and then putting your savings on autopilot. The system will help you reach your goals faster by analyzing your account and determining the most favorable time to save.
Let's say you want to save $200/month towards a down payment on a house. With the Rocket Money app, you set the goal and the monthly amount you'd like to contribute in savings. Your money is placed in an FDIC-insured account that you have access to if you should need to make an emergency withdrawal.
- Autopilot savings
- Track spending
- Free credit score
- Automatically manage subscriptions/bills
When you're trying to save money towards a down payment on a home, a money-saving app will help you get to your goal by helping you consistently spend less than you earn. Using one of these apps, you will learn to be intentional about every dollar you earn and finally gain control of your finances and your life. So, stop feeling guilty about spending money and try one of these apps to help you understand where your money is going and how to build up savings. You will no longer feel guilty about spending money on date night because you've budgeted for it while saving for a down payment at the same time.
Have you used any of the money-saving apps mentioned in this article? Please let us know the good, bad, and ugly in the comments.