The 50-30-20 budgeting approach

4 mins read

Create your budget plan using the 50/30/20 budgeting approach

Assuming that you’re already aware of the importance of budgeting, we can progress to a simple but powerful budgeting approach. The 50-30-20 budgeting approach recommends spending 50% of your after-tax income on needs, 30% on wants, while saving the remaining 20% each month. The technique is easy to follow and can help you achieve your financial goals by effectively managing your finances. But how does one distinguish needs from wants?

 

Needs, Wants, and Savings

In budgeting, needs are those items or expenses that are essential to your everyday life. Spending on these types of items is a necessity. The bills that you can categorize as ‘needs’ can include food, healthcare, transportation, utilities, among other indispensable daily expenses.

On the other hand, wants are those expenses that are not necessities, but make your life comfortable and more enjoyable. In other words, any other expenditures other than your basic needs can be defined as wants. Eating out, holidays, buying a new party outfit, or spending frivolously on fancy gadgets are some of the examples of wants. Without wants, you’ll still survive on your fundamental “needs”, but life may be a little bit dull.

Lastly, the approach suggests you should save and contribute 20% of your income each month to your emergency and sinking funds, which will allow you to meet your planned and unplanned expenses.

 

Benefits of the 50/30/20 approach

Here are some of the primary reasons why adopting the 50/30/20 approach to budgeting can be helpful.

 

Financial Discipline

The 50/30/20 rule defines spending thresholds, and also sets a savings target for each month. This approach can help you to be more financially disciplined. By being more disciplined with your spending and savings, you’ll have a better chance of achieving your financial goals. If your expenses on ‘needs’ or ‘wants’ breach the established limits, you can easily identify the areas that need cost-cutting. That can help you achieve your 20% savings target to ensure you can handle the unplanned challenges that life throws at you, or to plan for a more comfortable retirement.

Humaniti can help you understand your spending in great detail. When you connect your financial accounts, we do the heavy lifting to automatically categorise your spending, so you can better understand your spending, and learn where you can save. You’ll be able to quickly identify any areas where your spending too much, and our subscriptions feature allows you to easily review your “wants”, so you can decide if they’re really necessary.

 

Easy-to-follow Approach

Most people do not budget their income and expenses because they associate budgeting with complex calculations. However, the 50/30/20 approach is an easy technique to create a simplified yet effective budget, that you can implement immediately to get your finances in order. By combining the approach with a personal finance and budgeting app like Humaniti, you can easily monitor your spending.

 

Flexibility

The 50/30/20 budgeting approach gives you leeway to spend on your wants, instead of restricting you to spend on just needs. It assumes and accepts that we all have wants, and that not all of us can, or want to live a thrifty life without expenditure on the things that bring us joy. This means you have greater freedom with your budget. By allocating a portion of your budget to ‘wants’, this can also help you to stay motivated, while allowing you to have some fun.

 

How to create a Budget using the 50/30/20 budgeting approach

You can create a budget based on the 50/30/20 budgeting method by following the steps below:

 

1. Determine your after-tax income

Step 1 involves determining your after-tax income. If you are employed and have a regular income, your take-home monthly salary will most probably be your net income, as taxes are deducted by your employer. If you draw income from other sources as well, you should factor that income in too. In the event you are self-employed, your income may be variable. Deduct all business expenses and taxes from gross income to calculate your after-tax income figure. By doing this for a broader period like 6 months or a year, you can then work out an average that you can use on a monthly basis.

 

2. Allocate your income using the 50/30/20 ratio

After calculating your monthly after-tax income (also known as your net income), allocate 50% of it to meet your needs such as groceries, utilities, and rent; 30% on your wants such as eating out, going on holiday or buying gadgets; and lastly, save 20% of your income each month. Consider setting up automated transfers to dedicated accounts for needs, wants and savings,  aligned to your pay date.

 

3. Track your expenses

Key to this budgeting method is ensuring you track your expenses so that you don’t breach the limits you set in the previous step. You can use  expense tracking features available in a budgeting app like Humaniti to make your life easier. Humaniti facilitates a Link, Learn and Earn approach. By linking your financial accounts, you can monitor your expenses in close to real-time, without relying on any guesswork. Learn where you are spending by using the automated insights and dashboard. They also offer the ability to take part in surveys if you choose to do so, which can boost your earnings (see point 1).  By employing this method, you could be able to identify areas where you are overspending and make necessary adjustments.

 

4. Ensure you meet your savings target

Another way you can keep your spending within the limit is to meet your savings target as soon as your salary is credited into your account. Consider setting up a dedicated savings account and set up an automatic withdrawal equivalent to 20% of your monthly salary from your salary account to that account. That way you can avoid temptation to dip into your savings during the month, while shifting your focus to managing your needs and wants.

 

Conclusion

The 50/30/20 method of budgeting is a popular method that you can easily follow, and does not involve complex calculations. If you’ve previously struggled to budget, this approach may be easier to follow. Consider combining that budgeting technique with a personal finance app like Humaniti, to quickly understand your spending, and learn where you can save. Humaniti also offers a multitude of other features that can help take the headache out of finances by helping you to track your net worth, view your income and expenditure summary, and better understand your super.

 

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

5 key steps to budgeting

3 mins read

5 simple steps to making a budget plan towards your financial freedom

Budgeting is the first step to attaining financial discipline, yet most people fail to budget and wonder why they can’t save money. Thankfully, budgeting is not complex – you can create your own budget by following a series of simple steps that will help you to get your finances in order. In this article, we will discuss five key steps to budgeting, which will allow you to achieve your long-term financial goals. You might also like to read our post on the 50-30-20 budgeting method, which offers a simple and intuitive approach.

 

1. Determine your income

If you’re employed and earn a fixed salary, you can record your take-home or net salary as your monthly income. However, if you are self-employed or are earning income from a variety of sources, you should add up all income sources to determine your cumulative income. If you own a business or are self-employed, your income will be variable. In that case, you should calculate your average income and record it as your monthly income for budgeting purposes.

Without the help of a tool like Humaniti, you could calculate your monthly income by gathering your financial documents, such as bank statements, pay slips, investment account statements, and any other record that can help you accurately determine your monthly income. Humaniti can make this process a lot easier. Once you link your financial accounts, we do the hard work for you to surface your income.

Once you’ve accurately calculated your monthly income, it will become easier for you to budget for your expenses and savings that you need to reach your financial objectives.

2. Calculate your expenses

The traditional way of calculating your monthly expenses is to prepare a list of expenses that will give you a rough idea of how much you spend each month. The list of expenses you include in your list could include rent payments, mortgage repayments, fuel, insurance expense, utilities, groceries, dining out, etc. While expenses, such as insurance, mortgage, rent will be fixed each month, you will have to estimate the variable expenses, such as fuel, dining out, groceries.

To estimate your variable expenses, you could view your bank statement, credit card statement, and receipts of previous months and calculate the average monthly expense incurred. However, the traditional approach is time consuming, inefficient, and inaccurate. There is another way!

Humaniti takes the hassle out of expense calculation by doing the hard work for you. When you link your financial accounts, our smart logic categorises your spending, identifies recurring subscriptions, and prevents a view of your expenditure that you can analyse in detail.

 

3. Set spending limits

After understanding your monthly fixed and variable expenses, you could assign spending limits to each category of expense. Further to understanding your expenses (step 2), you can easily analyse your expenditure for each category and determine reasonable limits to curtail any unnecessary expenses. This will ensure that you do not breach your spending limits, ensuring you remain disciplined and in line with your budgeted spending.

4. Compare income with expenses

After calculating your income and expenses, deduct total expenses from your income to determine whether your income is sufficient to pay off your expenditures. If your income exceeds your expenses, you will have a budget surplus. But if your expenses exceed your income, you will have a budget deficit, which you’ll want to avoid.

Personal finance experts advocate the 50-30-20 rule that proposes spending 50% of your income on essential expenses, 30% on your wants, while saving the remaining 20% of your income. By keeping your expenses lower, you can widen your budget surplus and invest your saved money to fulfill your long-term financial goals.

5. Track your progress with a budgeting app

Step 5 of the 5 key steps to budgeting is to consider using a budgeting app. A budgeting app can go a long way towards attaining budgeting discipline. Humaniti can help by providing a a 360° snapshot of your financial position and by ensuring you get a clear view of your spending. By using a free budgeting and personal finance app like Humaniti, it will be easier to ensure you’re on track with your budgeting plan and goals, while also understanding the bigger picture of your personal finances.

 

Conclusion

Budgeting provides you with greater control on your finances, while allowing you to save the desired amounts to finance your larger purchases and minimise unnecessary debt. By following the 5 key steps to budgeting mentioned in this article, you can create a successful budget for yourself that will help lead you to achieve financial independence.

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

4 ways to stick to your budget

3 mins read

If you have already made a budget, you’re well on track to getting ahead of most people who fail to budget. However, sticking to your budget is another challenge entirely. By doing so however, you can achieve your financial goals. Here are 4 ways to stick to your budget.

After you have prepared your budget, you might find it difficult to follow during the first few months. However, with a little help from Humaniti, you can more easily stick to your budget and stay on the path to achieve financial wellbeing.

1. Track and curtail your expenditure

One of the top reasons people struggle to control their burgeoning expenses is their failure to track their expenditures accurately. By reviewing and understanding your expenses, you will be able to determine your primary expenditure categories, which will help you curtail unnecessary expenses.

Humaniti can help simplify this process by doing the work for you. When you connect your bank accounts, the app does the work of categorising your expenditure. That way you can concentrate on understanding your behaviour and habits and decide if you need to reduce your expenditure. A small recurring expense can add up to a sizeable total at the end of the month. (Coffee anyone?!)

2. Reduce your reliance on credit

It may be tempting to use your credit card for discretionary expenses, but you can easily overspend your budget if you are not careful. Paying in cash (or by debit card) instead of buying on credit can help you avoid breaching your budget. By using your hard-earned cash as opposed to credit, you’ll think twice about purchases and will also avoid high interest repayments.

When you link your debit accounts and credit accounts with Humaniti, you’ll be able to track how you’re spending and learn where you can save. A transparent view of your monthly incomings and outgoings are presented on your dashboard, so you can easily monitor your use of credit. Another benefit of linking all your accounts, is that you’ll be able to monitor any debt you owe, including credit card debt. Having a clear understanding of your debt is a critical step to building a better financial future.

3. Consider automatic deposits to your emergency and sinking funds

Personal finance experts recommend setting up emergency and sinking funds to prepare for emergencies and to finance large purchases. When you are reckless with your expenses, your emergency and sinking funds can get underfunded, which might create financial problems for you in the future.

To ensure that you save some money each month from your paycheck, consider establishing an automatic deposit to a dedicated emergency fund savings account. By establishing an automated savings plan, your bank will automatically deduct your specified amount to your savings account on a recurring basis, which will help you avoid the temptation to spend stay beyond your budget.

4. Minimise debt

If you need to borrow money to finance your purchases, think twice before making your purchase. The proliferation of buy now pay later services and easy to access credit make it all too easy to buy items that you can’t afford. Avoid falling into a debt trap by avoiding incurring debt where possible. Consider paying in cash (by debit card) instead, and if you can’t afford the item, think twice.

Conclusion

Humaniti can help you stick to your budget by surfacing the key information you need to help you keep your expenses in check and remain disciplined. The more money you can save and invest today, the better off you will be in the future.

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

How much do you need to retire comfortably in Australia?

3 mins read

Planning is essential if you aim to be able to live comfortably at the time of retirement. That said, understanding how much you need to retire is challenging. Most Australians struggle to determine the amount required to retire comfortably. How much do you need to retire in Australia?

While there is no one-size-fits-all answer to the question, lets discuss various scenarios that can help you understand how much you will need at retirement.

 

Your lifestyle after retirement

The amount you will need to retire really depends on the kind of lifestyle you aspire to after your retirement. The Association of Superannuation Funds of Australia’s (ASFA) has determined yearly budgets for single and couple households (aged around 65). Their guidance is based on leading what they classify as a ‘modest’ vs. a ‘comfortable’ lifestyle.

Comfortable lifestyle:

ASFA defines a ‘comfortable’ lifestyle as one in which you can afford regular leisure activities, frequent dining out, occasional overseas trips, ownership of a ‘reasonable’ car, and premium private health insurance.

Modest lifestyle:

On the other hand, a ‘modest’ lifestyle has been defined as one in which a retiree occasionally indulges in leisure activities, eats at home or occasionally dines out, owns a basic car, and basic health insurance, among other things.

 

ASFA’s guidance on retirement budgets

To lead a ‘comfortable’ post-retirement lifestyle, as per ASFA, a single household would require $43,687 per year, while a couple household would need $61,909 per year.

On the contrary, a single household would require $27,902 per year to lead a ‘modest’ post-retirement lifestyle, while a couple household would need $40,380 per year.

You can view ASFA’s detailed benchmark reports here.

 

Consider your current position

Understanding your current financial position and net worth is also crucial. If you have outstanding debt or are still paying off your mortgage, you will need to factor debt into your retirement calculations. By ensuring you have a clear view of your current position (including any debt), you’ll be able to plan appropriately and determine your post-retirement needs.

 

Factor in your post-retirement life expectancy

As per the Australian Bureau of Statistics Life Tables, an average Australian aged 65 is expected to live to at least 90 years of age. Accordingly, you can expect to live for roughly 25 years after retirement. This means that you’ll need to plan to have sufficient finances for at least 25 years post your retirement.

 

Use a retirement calculator/planner

You can also use a retirement calculator/planner to get a rough idea of how much money you will need for your retirement. You will need to input figures such as your age, income, retirement age, relationship status, super balance, employer contributions, etc. However, calculations are only estimates that are based on some assumptions. You should exercise due diligence while calculating your retirement income and adjust the figures according to your situation.

 

How Humaniti can help

Humaniti’s mission is to help people to get more organised and plan a brighter financial future. By linking your banking and superannuation accounts, Humaniti will provide an up to date view of your net worth. In addition, you’ll be able to view your current superannuation balance and understand your outstanding debt. A clearer view of your personal financial position is crucial to budgeting and planning for retirement. 

In the case of your super balance, from your dashboard you’ll be able to understand how your balance compares to other Australians like you. You’ll be able to monitor your net worth and superannuation balance over time. That can help you understand whether making additional super contributions is appropriate to your circumstances. 

As an added benefit, once you have linked your accounts, Humaniti also categorises your spending so that you can understand where you are spending and identify any additional opportunities to save. Additional savings and investments can help you have a more comfortable retirement.

 

Conclusion

Calculating the amount required for retirement is different for each individual and household. The financial circumstances of each individual or family are different. The lifestyle you wish to maintain, your own financial health, your relationship status, and many other factors can collectively determine how much you would need to save to ensure a comfortable retirement.

 

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

 

Benefits of a savings plan

3 mins read

4 key benefits to saving money for the future

A savings plan is a roadmap to save and invest money to reach your specific financial goal.  Depending on your objectives, there are many benefits to a savings plan. You can consider following well a established and tested approach to saving and budgeting, like the 50-30-20 method, or come up with an approach that is suitable to you. Whatever approach you follow, establishing a savings plan can help you achieve a brighter financial future. Below are 4 key benefits to a savings plan in place and some tips on how Humaniti can help.

 

1. Be more prepared for irregular expenses

You can create a savings plan to fund your irregular or one-off expenses. Irregular expenses can spring up at any time, leaving you in a financial predicament if you haven’t planned for the unexpected. One common way to save for irregular expenses is to set up a sinking fund. You could use your sinking fund to cover planned expenses as well as some extra buffer for unplanned expenses. Any additional savings you add to your sinking fund can enable you to tackle unplanned expenses without a major dint to your financial plans.

 

2. Fund your big purchases

Savings plans are most commonly used to fund large purchases that would otherwise require getting a loan. You can save significant amounts on the interest you would otherwise incur, when you fund your large purchases using your savings instead of loans. Taking on a loan can be costly, and you also need to maintain a good credit score for most financial institutions to approve your loan.

As a practical example – consider if you expect you’ll need to buy a new car in 3 years. You can start saving today to accumulate the expected cost of purchase. When invested wisely, your savings will earn interest. As such, you can grow your savings and beat the impact of inflation, while benefiting from the magic of compound interest returns as well. With savings at hand, when you’re ready to make a purchase, you may be able to negotiate a lower cash price for your car.

  • Humaniti can help by providing a view of your net worth. With a simple dashboard to get a 360° view of your finances, it will be easier to ensure you’re on track with your savings plan and goals, while also understanding the bigger picture of your personal finances.

 

3. Fund your retirement savings account

With a savings plan, you can fund your superannuation to be more comfortable during your retirement.  You can consider doing this by supplementing your super with additional contributions. There may also be tax benefits for doing so.  Planning for a comfortable retirement  as early as possible can make a huge impact on the amount of money you will accumulate at the time of retirement.

  • By linking your superannuation account to Humaniti, you’ll get rich insights on how your super balance compares to other Australians like you. By keeping a closer eye on your super and how you compare, you can decide whether allocating additional savings to your superannuation is appropriate to you.

 

4. Pay for the down payment of your house

Buying a home requires a significant down payment. By saving enough money to cover the down payment, you can qualify for better interest rates on your mortgage while maintaining some equity in your home.

  • Humaniti allows you to link both transactional and savings accounts. This helps you to better understand your spending, while also having a clear view of your savings over time. In addition, if you own a home and have a separate mortgage account, you can link your account and add your property, so that you have a clearer and up-to-date view of your net worth.

 

Conclusion

There are many benefits to a savings plan. Humaniti can help you understand how you are tracking against your savings plan. When you link your accounts, we automatically categorise your transactions for you, so you can better understand your spending and learn where you can save. The 360° view of your finances can help you manage your finances, budget better, and build a brighter financial future.

 

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

Why budgeting is important

2 mins read

Top 5 reasons why personal budget planning is important

The road to financial security often starts by taking the time to sit down and create a budget. A budget puts your income to work by strategically allocating money to expenses and savings. In other words, a budget is a spending plan that will enable you to live within your means. At the same time, budgeting can be a powerful way to help you save enough money to achieve your long-term financial goals.

 

In this post, we discuss five reasons why budgeting is important, and why you should start budgeting to make the best use of your available income.

 

1. Budgeting helps you manage and minimise debt

Budgeting helps prevent the accumulation of new debt. By strategically allocating your income you can lower your debt. When you prepare a budget, you aim to allocate a portion of your income to finance your expected expenses, without taking on new debt. In addition, budgeting helps you focus on saving money each month. By doing so, you will be able to pay off your existing debt if you have any. The 50-30-20 approach is a popular budgeting method, but there are many others too.

 

2. You’ll be more prepared for emergencies

With an appropriate budgeting plan, each month you can aim to contribute a certain portion of your income towards your emergency fund. Most experts suggest that to ensure that you stay financially sound during a crisis, your emergency fund must have enough money to provide for your living expenses for three to six months. When you create a budget and stick to it, you can prepare for unplanned emergencies in a better way.

 

3. Budgeting helps you be more disciplined with your spending

When you create a budget, you keep a close watch on your spending to identify the areas of improvement and where you can lower your expenses. When shopping, you will be inclined to follow the spending limits specified by you in your budget. This can help you to be more  disciplined with your spending and keep you on track to achieving your financial goals.

 

4. You can build your retirement savings

When you follow your budget, every dollar you save will contribute towards achieving your financial goals. For example, after allocating your savings to emergency and sinking funds (for any major upcoming expenses), you can elect to invest any remaining portion of your savings to your superannuation fund. This can help ensure you’ll be more comfortable during your retirement. By contributing a certain amount of money each month to your super fund on top of your employer’s contribution, you can supplement your retirement income.

 

5. Budgeting helps you achieve your financial goals

By closely following your budget, you can achieve your financial goals. Whether you want to buy a car or finance your child’s education, you can tailor your budget accordingly to achieve your desired savings amount each month. Budgeting is by no means a golden egg, but a clear plan is half the battle.

 

Conclusion

Budgeting can give you complete control over your finances and help you devise a plan to achieve your financial objectives. Your financial health can markedly improve once you make a budget and stick to it. If you don’t have a budget, take the first step and improve your financial condition by discovering how Humaniti’s personal finance and budgeting app can help you build a brighter financial future.  

 

 

* Disclaimer – the information in this post is general only and does not constitute financial advice. 

 

Calculate your net worth

3 mins read

Understand and learn to calculate your net worth

What is your net worth?

Simply put, your net worth is what you own less what you owe. Or, in other words, calculate your net worth by summing the value of all your assets and then subtracting the sum of any liabilities you have. E.g. The total value of your house, your car, any savings or funds in your bank account, shares you own and any other assets, LESS any debts – e.g. your credit card debt, mortgage debt, short term loans or any other liabilities.

Just because someone has a high net income, that doesn’t mean that they have a high net worth. They could have a number of liabilities that reduce their net worth.

 

Why it can help to understand your net worth

To get a better understanding of your personal finances, it’s can be very beneficial to get a solid understanding of your financial position. With a view of your net worth, you’ll understand your baseline and be able to get a better gage on your current financial position. Better still, once you have your baseline, you’ll be able to track your position over time.

  • Understand your baseline.
  • Determine if you have enough savings to cover emergencies.
  • Better understand any debts you need to reduce.
  • Track how you’re progressing over time.

 

How to calculate your net worth

There’s no major rocket science to this one. Rather, it requires that you take an inventory of everything you own and everything you owe. Once you’ve collated your list, determine the values of each asset and liability and subtract total liabilities from total assets.

Total assets – total liabilities = Net worth

 

Assets and liabilities to consider when calculating your net worth

When creating an inventory to calculate your net worth, consider the following  when creating your asset and liability inventory.

Assets:

  • Your savings balance in your savings accounts.
  • The balance in your checking/current accounts.
  • Balances in any retirement accounts you have created.
  • Superannuation balance(s).
  • The market value of your home (if you own one).
  • If you own any investment properties, the market value of the property.
  • The balance of any share investment accounts.
  • The market value of any cryptocurrency, gold, art, jewellery, or any other alternative assets that you own.
  • The value of any transportation assets you own – cars, motor bikes, boats, etc.
  • Value of your ownership stake in any businesses you own, or part own.

Liabilities:

  • The balance of any loan you have (mortgage, car loan, student loan, or any other loan).
  • The value of any cash debt you may have.
  • Any outstanding balance on credit cards.
  • Tax liabilities you may have incurred that are outstanding.
  • Any other debt you may have.

 

How Humaniti can help

Humaniti’s personal finance and budgeting app can take the hassle out of calculating your net worth and tracking it over time. When you connect your financial accounts, the total values of your assets and liabilities will be automatically populated for you on your dashboard. If you have other assets or liabilities, you can add the values manually. Once all your assets and liabilities have been added, Humaniti will automatically calculate your net worth and track it over time.

Net worth calculator
Your net worth is automatically calculated.

 

Check out this article to learn more about how Humaniti can help you manage your personal finances.

 


Disclaimer:

Humaniti is a personal finance and budgeting app, not a financial advise solution.  This article is provided for general information purposes only. Consider seeking independent financial, taxation or other advice from a qualified advisor where you require assistance relating to your unique circumstances.

 

Track your spending to learn where you can save

3 mins read

Spend less and save more by understanding where you’re spending

Take control of your personal finances by understanding where you’re spending. Track your spending to budget better and save more. Budgeting is important, but difficult without help. That’s where Humaniti makes things much easier. .

 

1. Understand where you’re spending

Without the help of smart tools, knowing where and when you’re spending can be harder than it seems. Your banking app will show you the detail of your transactions, but most banking apps lack the smarts to automatically categorise your spending (other than at a high level). What’s more, most banking apps don’t offer a simple way to view your spending over a chosen period and to dive into the detail of each transaction.  Without the help of a personal finance or budgeting app, it’s hard to know exactly how much you’re spending and on what you’re spending on.

How Humaniti helps

To help you better understand how and where you’re spending, when you link your financial accounts with Humaniti, your spending will be automatically categorised for you. The vast majority of your transactions will be automatically categorised, and you can manually categorise those that aren’t once you understand what the transaction relates to.

spending categories chart

 

By getting a better understanding of the categories of your spending, you’ll know where your money is going. To dive into the detail of each category, simply select the category you want to review.

 

2. Evaluate how you’re tracking

Once you’ve connected your accounts, simply review how you’re tracking for the period. Check if this is in line with your expectations, or whether there are areas of your spending that you are concerned with. By having a clear view of when and where you’re spending, you may find that it’s easier to budget and identify areas where you could save.

 

3. Review your recurring subscriptions

Subscription services are the norm these days, but do you know exactly how much you’re spending on them, and which ones you’re not using? Most services hook us in easily, but unless you review your banking statement, it can be hard to identify your recurring subscriptions from other transactions, and you may end up paying for services you’re not using.

How Humaniti helps

Once you’ve connected your financial accounts, the Humaniti app will automatically identify and show you your recurring subscriptions. That way, you can quickly identify if you’re paying for any services that you’re no longer using. In fact, one of our founders saved $480 a year by identifying subscriptions that he didn’t need.

No need to take any manual steps. We’ll do all the work for you. Simply review your subscriptions from your dashboard.

subscriptions

 

Key takeaways on tracking your spending

Understanding where and how much you’re spending is key to identifying where you can save more. Humaniti’s automated tools can help make this process easier, by doing the heavy lifting for you. Track your spending and improve your savings with our personal finance app.

Use a personal finance app to improve your financial position

6 mins read

Using a personal finance app can greatly help you understand and improve your financial position. This post introduces the topic of a personal finance app. It explains how using one can hugely assist you on your journey towards greater financial freedom.

Humaniti offers a free personal finance app


Getting a handle on your financial position so that you can improve it, has always been important. The challenges we’re experiencing right now make it even more important than ever. With the continued challenges posed to the Australian and global economy by the corona virus, understanding and improving your financial position is becoming a hot topic for a growing number of Australians.

Improving your personal financial position can give you greater security during challenging times. That’s truer again when the risk of a job loss, reduced hours, or a lay off is all too real. Even if you’re in a different stage of life, and are thinking ahead about retirement, understanding your financial position is also critical. A personal finance app can help!

 

Understand your financial position with a personal finance app

If you want to complete a jigsaw, you’ll need to piece together all the pieces to create the finished article. The same concept applies to understanding your financial position. Traditionally, getting an understanding of your net worth and financial position required a lot of manual effort. Piecing together your financial footprint in excel or with a financial advisor isn’t easy.

 

These days, many of us have more than one bank account. We may have a credit card (or cards) or a savings account with a different institution to our transaction bank account. Then there’s a mortgage or shorter term debt. More again with multiple superannuation accounts, share trading accounts, or other financial and non-financial assets or liabilities. We invest in different asset classes compared to ten years ago like cryptocurrencies. Our personal financial situation is no longer limited to one institution. This can make piecing together the pieces of the puzzle to create a holistic view of your financial situation very difficult….until now. Enter the personal finance app!

 

How a personal finance app can help

A personal finance app is exactly what it sounds like. It’s an application (iOS, Android or a website), that should help you get a better understanding of your financial position. It should ease understanding your spending, and help you manage your personal finances. Beware however, as not all apps are equal.

 

What you should expect

The ability to gain a holistic view of your net worth

Without a personal finance app that’s easy to use and facilitates a clear view of the entirety of your personal financial situation , it’s likely that you’d need to piece this together in excel. Or maybe on old school pen and paper! You’ll need to login to many different financial institutions to understand your assets and liabilities. Then you’ll need to capture the balance at that point in time. With an app, instead of doing that manually, you should expect to be able to easily collate a 360 view of your financial position, in a fast and easy manner.

An up-to-date view of your financial position

The problem with manually collating a view of your financial position, or apps that require manually inputting your assets and liabilities, is that it’ll be out of date the second you close that excel sheet and head for a coffee. An app with connections to your financial institutions however, will always have an up to date view of your position, without requiring manual input.

Transparency on your spending

Understanding where you’re spending, and what you’re spending your hard earned cash on is important. While your banking website or app may show you the transactions, it probably won’t help you easily understand exactly how and where you’re spending. Remember that subscription service you signed up for a few years ago that’s deducting quarterly fees? Maybe you don’t. You should be able to see a summary and the detail of your spending. That will ensure you’re crystal clear on your expenses and ongoing subscriptions.

A coherent summary of your income and expenses

Managing your personal cash flow can be difficult. Without a logical and uncomplicated summary of your cash flow situation, you’re likely to be flying blind. The best personal finance apps should help you by summarising your income streams and your  expenses.

A secure and safe solution

As with any situation that involves your financial information, you should expect extremely high security standards, similar to that of a bank. A secure solution will ensure any prying eyes can’t gain access to view your financial position.

Free or paid solutions

Last but not least, expect most services to offer a free or paid service. Those that offer free solutions will likely try up-sell alternative products to you. Paid services will require an ongoing subscription for access to their ‘premium’ add-ons.

 Humaniti is free, safe and secure and will never try to sell you anything.

 

Build a brighter financial future with Humaniti!

Humaniti offers a personal finance app that is free, safe and secure, and can help you get a greater understanding of your financial position within minutes. With greater insights on your spending, you can stick to your budget. Unlike other financial products, Humaniti will never try to sell you anything.

Humaniti can help you to..

  Easily discover your net worth and track it over time
  Quickly compare your Super to other Australians like you
  Track your spending and learn where you can save
  Earn extra cash every week by completing surveys that are relevant to you
  Get a clear and comprehensible picture of your financial position

 

How does Humaniti’s personal finance app work?

Once you’ve registered an account, you’ll then be prompted to link with your financial institutions. This will help you get a holistic view of your net worth and spending, Link your bank accounts, super accounts, and any share trading accounts you use to create a 360 degree view of your net worth. Furthermore, you’ll also get a view of  where and how you’re spending in minutes. If you were to try to do this manually, it would probably take a few hours. You’d need to log into multiple different accounts. Even then, you’d never get the clear view and comprehensible insights on your spending and superannuation that Humaniti offers from it’s dashboard immediately after you link your accounts.

 

What about security? 

When you link your financial institution accounts with Humaniti, your login details are never saved. No transactions can ever take place using your Humaniti login details. In addition, Humaniti uses bank level encryption technology, and partners with security experts to ensure your information is safe and secure at all times. Humaniti is also compliant with the Australian privacy act. 

Humaniti is a secure, safe and compliant personal finance app

 

 

What Humaniti’s members are saying

This is a fantastic secure tool where it’s possible to track bank balances, superannuation balances loyalty balances and much more with one login. I wasn’t aware anything like this existed and everyone should have access to this one stop shop. I love it.

Kevin (WA)

“Initially I was attracted by the earning of rewards but after exploring the site I was very impressed with the tracking and analysis of my spending, which has provided me with great help in that area. After more research I also feel very good about the charitable aspect of the site.”

Lisa (NSW)

 

81% of our members would recommend Humaniti to their family and friends! 

Join the community of over 13,000 Australians who are loving Humaniti’s personal finanace app

The Humaniti app is available on iOS, Android and web platforms.  Become more organised. Plan a brighter future. Earn cash rewards for completing surveys, and help make the world a better place.

 


   

Strong Calls to Extend Jobkeeper

< 1 min read

Humaniti’s app users recently completed a survey about jobkeeper allowance. The results of the survey were published in the Herald Sun on the 18th of May. The article and survey results are reproduced below.

Reproduction of the Herald Sun article referring to the Humaniti jobkeeper survey results

 

In addition to providing users with personal finance insights, Humaniti rewards it’s users with real cash when they complete surveys. Users can earn extra cash every week by completing surveys that are relevant to them.