Fully maximizing your banking experience and potential means setting up more than just a checking account. When it comes to your cash flow, income and expenses, the balancing act can be delicate and often hard to navigate. Though there are many financial planning products and services you can use or buy, there are also some overlooked management tools that come free of charge right through your bank account.
Find Out: How Much Money Do Americans Have in Their Bank Accounts in 2024?
For You: 9 Easiest Ways To Maximize Your Savings in 2024
In today’s digital age, expense management and personal finances have never been easier, thanks to the sophisticated tools offered by most banks. With the right approach, you can harness these tools to access your expense reports, track your spending, stay on top of your budget and meet your financial goals. Save time and money by leveraging these bank tools for better expense tracking.
Step 1: Sign Up for Bank Account Alerts
The first step in optimizing your expense tracking is ensuring you’re using your bank’s online banking services and mobile app to the fullest. These platforms give you real-time access to your accounts, making it easy to monitor your spending and account balances anytime. You can also set up to get notifications for such things as low-balance alerts, which can keep you from overspending and incurring overdraft fees.
- How to get started: Visit your bank’s website or download the mobile app. You’ll typically need to create an online account by verifying your identity, setting up a username and password, and enabling multi-factor authentication for added security.
- Bank benefits: Instant access to transactions, easy transfers between accounts, and the ability to check your spending habits on the go.
- Tips for better tracking: Enable push notifications on your app to receive real-time alerts for any purchases, withdrawals or transfers. This will help you monitor your spending more closely.
Up Next: How Can You Withdraw Money From a Bank Account? 3 Ways To Know
Step 2: Automate and Categorize Your Bills and Budget
Many banking and expense tracker apps come equipped with tools that automatically categorize your expenses. Whether you’re spending on groceries, dining out, utilities or entertainment, the app can break down your transactions into categories, making it easier to see where your money is going. You can also automate your savings and your bill pay to make sure all of your funds are getting allocated appropriately, efficiently and effectively.
- How to get started: In your banking app, look for features related to expense categorization, receipt tracking or spending summary. These features will typically be found in the account dashboard or settings as part of the pre-existing accounting software. You can also set up a certain percentage of your paycheck to automatically go into a designated linked account as well as track which bills you have set to autopay.
- Bank benefits: By organizing your transactions into categories, you’ll get a clearer picture of your spending habits or what credit or debit card transactions you may need to edit or cut back on.
- Tips for better tracking: Some apps allow you to set spending limits for each category. Use this feature to set boundaries for discretionary spending like dining out or shopping. You can also try the 50/30/20 budgeting rule where you break up your paycheck into 50% for needs, 30% for wants and 20% for savings and then automatically allocate those funds accordingly.
Step 3: Access and Analyze Spending Reports
Many banking platforms allow you to download monthly or quarterly spending reports. These reports provide detailed insights into your financial activity, allowing you to track your progress over time and spot trends. The best first step in moving forward financially is knowing where you’re starting.
- How to get started: Look for an option to download statements or generate spending reports in your online banking dashboard. Options will vary from bank to bank but you can usually choose the time period you want to review and export the report in formats like PDF or Excel.
- Bank benefits: Having a tangible report of your expenses or even employee expenses helps in budgeting and setting financial goals. You can also easily spot patterns, like seasonal spikes in spending or increasing bills, that may go unnoticed on a day-to-day basis.
- Tips for better tracking: Regularly review your spending reports to ensure you’re staying within your budget. If you notice any irregular or unauthorized transactions, report them to your bank immediately.
Step 4: Take Advantage of Bank Compatible Budgeting Tools
While your bank’s tools are useful, you can supercharge your expense tracking by integrating your accounts with third-party budgeting apps like Mint, YNAB or Personal Capital. These apps allow you to connect multiple financial accounts and can often be linked to your bank app to operate different banks, credit cards and investments from one place to create a holistic view of your finances.
- How to get started: Sign up for a budgeting app and securely link your bank accounts. Most banks support integration with popular third-party apps, ensuring your financial information or business expenses are transferred safely.
- Bank benefits: Financial apps offer advanced features like detailed goal-setting, progress tracking, and proactive financial advice. This gives you more control over your budgeting and saving strategies.
- Tips for better tracking: Many budgeting apps come with customizable alerts, reminders, and goal tracking. Use these features to help you set your goals and stick to your financial plan.
Final Take To GO
The bottom line is that your bank account comes fully equipped to help you best navigate your unique financial situation. Take advantage of the tools included with your account and beyond so you can leverage your bank’s products to gain better control of your next money moves.
With a little attention to what you already have access to and a bit of financial planning, you’ve taken your first steps toward painting a brighter financial future.
More From GOBankingRates
- 10 Costco Fall 2024 Items To Stock Up On Before They Sell Out
- These 10 Used Cars Will Last Longer Than an Average New Vehicle
- Here's How To Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
- 3 Things You Must Do When Your Savings Reach $50,000
This article originally appeared on GOBankingRates.com: How To Leverage Your Bank’s Tools for Better Expense Tracking in 4 Steps
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
