Financial Tools and Resources: A Guide for Money Management
"The secret to getting ahead is getting started." – Mark Twain
Welcome to this edition of our financial literacy newsletter! Over the past few months, we’ve explored the essentials of personal finance, why it matters and the steps you can take today to build a better tomorrow. In this issue, we’re diving into financial tools and resources designed to simplify money management, empower informed decisions, and set you on the path to lasting financial success. Whether you're just beginning your journey or looking to refine your strategy, the right tools can save you time, reduce stress, and accelerate your progress toward financial freedom.
Why Use Financial Tools?
Managing money can sometime be overwhelming, especially when you are starting, but you don’t have to do it alone. There are many financial tools which can act like a pocket financial coach to guide you every step of the way. When you use financial tools, you can-
Track spending and create budgets
Automate savings and investments
Monitor your net worth
Pay off debt strategically
Learn and grow your financial knowledge
Here is a suggested list of tools and resources to help you manage your money:
Budgeting Tools: Creating and maintaining a budget is a fundamental step towards financial stability. Budgeting tools can help you track your income, expenses, and savings, ensuring you have a clear understanding of your financial situation. Here are some popular budgeting tools:
YNAB (You Need A Budget): YNAB is a membership-based budgeting tool that focuses on proactive budgeting, helping you allocate your income to different categories before you spend it. The app encourages you to give every dollar a job and aims to help you break the paycheck-to-paycheck cycle. This app also provides educational resources and workshops to improve your financial literacy.
EveryDollar: EveryDollar, created by financial expert Dave Ramsey, is a user-friendly budgeting app that follows the zero-based budgeting method. It allows you to plan your expenses down to the last dollar, ensuring you have a clear plan for your money. The app offers both free and premium versions, with the premium version providing additional features like bank account connectivity.
Goodbudget: The app is more about planning your budget which portion out your monthly income toward specific spending categories. The app, however, is manual as it doesn’t connect to your bank account. There is free as well as premium versions available for this app.
Investment Tools: Investing is a crucial component of building wealth and securing your financial future. Investment tools can help you make informed decisions, manage your portfolio, and optimize your returns. Here are some top investment tools:
Robinhood: Robinhood is a commission-free trading platform that allows you to invest in stocks, ETFs, options, and cryptocurrencies. The app is designed to be user-friendly and accessible to beginners, making it a popular choice for new investors. Robinhood also offers educational resources to help you learn about investing.
Betterment: Betterment is a robo-advisor that creates and manages a personalized investment portfolio based on your goals, risk tolerance, and time horizon. The platform uses a combination of low-cost ETFs and advanced algorithms to optimize your returns while minimizing risk. Betterment also offers features like tax-loss harvesting and automatic rebalancing.
Acorns: Acorns is an investment app that rounds up your everyday purchases to the nearest dollar and invests the spare change in a diversified portfolio. This micro-investing approach makes it easy to start investing small amounts of money. Acorns also offers features like recurring investments, retirement accounts, and educational content.
Debt Management Tools: Managing and reducing debt is essential for achieving financial stability. Debt management tools can help you create a plan to pay off your debt, track your progress, and save on interest. Here are some effective debt management tools:
Undebt.it: Undebt.it is a debt repayment planner that helps you create a customized plan to pay off your debt using methods like the debt snowball or debt avalanche. The tool allows you to track your progress, visualize your debt-free date, and compare different repayment strategies.
Debt Payoff Planner: Debt Payoff Planner is another tool that helps you create a debt repayment plan and track your progress. The app allows you to enter your debts, set a repayment goal, and choose a repayment strategy. It also provides insights and tips to help you stay motivated and on track.
Credit Karma: Credit Karma offers free credit monitoring and financial tools to help you manage your debt and improve your credit score. The platform provides personalized recommendations for credit cards, loans, and refinancing options. Credit Karma also offers educational resources to help you understand your credit and make informed decisions.
Financial Planning Resources: Comprehensive financial planning is essential for achieving long-term financial goals and ensuring a secure future. Financial planning resources can help you create a holistic plan, set goals, and monitor your progress. Here are some valuable financial planning resources:
Personal Capital (Empower): Personal Capital is a financial planning and wealth management platform that offers tools for budgeting, investment tracking, and retirement planning. The platform provides a comprehensive view of your financial situation, allowing you to track your net worth, analyze your investments, and plan for retirement. Personal Capital also offers access to financial advisors for personalized advice.
SmartAsset: SmartAsset is another online financial planning tool that provides personalized recommendations for retirement planning, investing, and managing your finances. The platform offers calculators and tools to help you estimate your retirement needs, compare investment options, and find the best financial products. SmartAsset also connects you with financial advisors for personalized guidance.
Fidelity Planning & Guidance Center: Fidelity's Planning & Guidance Center offers a suite of tools and resources to help you create a comprehensive financial plan. The platform provides goal-setting, retirement planning, and investment analysis tools to help you stay on track and achieve your financial objectives. Fidelity also offers access to financial advisors for personalized advice and support.
Educational Resources: Financial literacy is the foundation of sound financial decision-making. Educational resources can help you improve your understanding of personal finance, investing, and money management.
Books: Here are some of the books that I have found very helpful for my personal financial journey
Money Master The Game by Tony Robbins
The Latte Factor by David Bach and John David Mann
Rich Dad Poor Dad by Robert Kiyosaki
How Money Works: Stop being a sucker by Tom Mathews and Steve Siebold
Tax-Free Retirement by Patrick Kelly
Websites:
Investopedia: Investopedia is a comprehensive online resource for learning about finance, investing, and economics. The platform offers articles, tutorials, and videos on a wide range of topics, from basic financial concepts to advanced investment strategies.
Kiplinger: Kiplinger is a trusted personal finance magazine that delivers sound, unbiased financial advice in clear and concise language. It covers essential topics such as money management, saving, investing, and retirement planning, helping readers make informed financial decisions for a secure future.
Online courses:
Coursera and Udemy: Coursera and Udemy are online learning platform that offer courses on personal finance, investing, and financial planning. The courses are created by top universities and institutions, providing high-quality education on a variety of financial topics.
Financial Planning Association (FPA): The Financial Planning Association (FPA) is a professional organization that offers resources and education for financial planners and individuals. The FPA provides articles, webinars, and events on a wide range of financial topics, helping you stay informed and improve your financial knowledge. The organization also offers a directory of certified financial planners to help you find professional guidance.
This list is not exhaustive, there are many more options out there if you're interested in exploring further. However, the selections here are based on my research and personal experience, offering a starting point to help you make informed decisions.
How to Choose the Right Tools for You
With so many options available, what is best for you? It all depends on your goal and preferences. Here are some questions to ask yourself which might help you to decide what you need.
What’s my biggest financial challenge right now (e.g., budgeting, debt, investing)?
Do I prefer a hands-on or hands-off approach to money management?
Am I willing to pay for premium features, or do I need free options?
What’s my level of financial knowledge, and do I need educational resources?
Final Thoughts
Financial tools and resources are like a Swiss Army knife for your money—they can help you tackle almost any financial challenge. Whether you’re budgeting for the first time, paying off debt, or building an investment portfolio, there’s a tool out there to make the process easier and more effective.
As Tony Robbins says, "It’s in your moments of decision that your destiny is shaped." Take the first step today by exploring one of the tools or resources mentioned above. Your future self will thank you!
Until next time, keep growing and thriving!
Gajendra Shrestha
Financial Professional
Herriman, UT