Buying a car is a thrilling thought, but there is a large financial responsibility that goes along with it. It’s easy to solely look at the cost of the vehicle, but the truth is, you’re committing to a number of monthly expenses. A vehicle purchase can be more than just getting a convenient mode of transportation; it can be a credit building opportunity that gives you a fresh chance to create and adhere to a budget. One of the best ways you can prepare for the fiscal responsibility is to start the budget before you purchase your used vehicle, and use the money you set aside during the "practice" phase for both an emergency fund and a down payment.
One way to get yourself onto a budget is to utilize today’s infinite technology and seek out help online. There are several apps out there worthy of keeping you in the know about where your money is going and how you can manage it better. Here are the best budgeting apps to help you prepare for your used car purchase, and to help you make your payments after you bring it home.
Start by Looking at What a Budget Is
Budget 101 tells you that you have a monthly income. Based on that number, you can cover a certain number of expenses. To live with less stress, the goal should be to keep your income higher than your expenses.
When you sit down to design a budget, it’s important to have priorities. The roof over your head, food, savings and healthcare are priorities. Your morning coffee stop, a sweet pair of kicks, a gym membership and a night at the movies are luxuries. A car falls in the realm of important to essential for many. It’s how they get to work, how the kids get to school, and how they get the provisions they need to exist. The thing to keep in mind is that a car is not simply the monthly payment you make. You need to factor in the insurance, maintenance, gas and the other fees that pop up on an annual basis. Once you determine all of that, you’ll have insight into what it will truly cost you to own a car. Base the price of the car you can afford on all of those factors.
Once you have the must-haves, like-to-haves and don’t-really-needs in place for your budget, and you've determined you can afford everything, you can start looking at what app will work best for you.
Top Budgeting Apps
- Mint – There is a reason Mint makes it onto top budgeting app lists every year—and it’s because they have been around for a long time. Mint works on several levels: It creates budgets and helps you stick to them, it gives you customized tips for your situation, and it keeps an eye on your credit score and lets you know ways to improve it.
- YNAB (You Need a Budget) – Everybody needs a budget, and this trendy app lets you know it. One of the biggest draws of YNAB is the community forum. Real people offer their support in your quest to stop living in debt and/or paycheck to paycheck. Targeted at those who may not have the best habits, YNAB can give you a new way of life with its incredible features.
- Pocketguard – Pocketguard is excellent for those who worry about having their information compromised. Not only do you get budgeting help with the app, you also have bank level security in your pocket. Simplify things by having all your accounts in one place and organize with charts, graphs and easy-to-understand tabs.
- Spendee – Track your money and learn where you’re losing it. Spendee really focuses on letting you know what you spend on each month so you can stop and think before purchasing yet another overpriced meal.
- Level Money – Use this app to know how much you have to spend. Before you say, “can’t I just look at my bank balance,” note that Level Money factors in your budget and takes that money out of the picture before you can spend it on something else. In other words, the balance on Level Money is the real one—it has adjusted itself to make sure your monthly expenses are covered first.
The Right App for You
The truth is, any one of these apps, or the many others available, are better than no budget at all. Determine your weak points, and try and pick an app that helps you the most in addressing them. Practice makes perfect, and if you get yourself on a budget before you purchase your used vehicle, you’ll find that buying and owning a car can be easier than you imagined.
