Back in the day, our parents relied on checkbooks and investment advisors to manage their money. Thankfully, these days we’ve got something a lot more convenient: our smartphones. These handy devices are smart enough to put a man on the moon, and that means they’re smart enough to help you reach your financial goals, too.
If you use Chime Bank’s payment app, you’re already one step ahead of the game. Yet, there are also other apps out there that can help you manage your money and save up for future financial goals. Whether your goals are to save for retirement or take a great vacation, these apps will help you stay on track and sock more money away into your bank account. Check them out:
Is your car mainly a grocery-getter? Do you take public transportation to work? If so, you may be overpaying for your car insurance.
That’s because traditional car insurance is typically paid for via monthly premiums that don’t factor in how much you actually drive. And if you don’t drive much, the per-mile cost of your insurance might be quite high.
Metromile gets around this conundrum by only charging you a low base rate (so your car is still covered even if it’s parked for a while), followed by a per-mile charge for each mile you drive per day. It gets sent this amount wirelessly from a small device you plug into your car’s OBD-II port.
The Metromile app is the hub to find out all sorts of other car information as well. For example, it provides useful features like a gas mileage tracker. It also alerts you with street sweeping notifications and when your car’s warning lights come on. Oh, and if you go on a road trip? No worries — Metromile only charges you for the first 250 miles you drive in a day.
Normally, getting any kind of insurance is a painful, expensive process. That’s because a lot of insurance companies are set in their antiquated, bureaucratic ways.
But what if you could purchase your insurance — and file claims — cheaply and easily with a well-designed app? You’re in luck. You can do this with Lemonade. With the Lemonade app, you can get a custom quote for renters and homeowners insurance by answering a few simple questions. If you like the quote, you can purchase the insurance through the app. And if you ever need to place a claim or ask questions, you can also do so right through the app.
Aside from its app-based insurance model, Lemonade is different from traditional insurance companies in that it’s a public benefit corporation. Its business model works like this: It takes out a flat fee from your payments, and pools the rest into a pot for paying out claims. At the end of the year, any of your leftover premiums go towards a charity that you select, rather than back toward Lemonade’s profits.
In this manner, the company hopes that fraudulent claims will be limited, as customers know that any unpaid amounts go towards charity versus the company’s coffers. This limitation of claims fraud — and a drive to help charities rather than focusing solely on profits — means that Lemonade can offer renters and homeowners insurance at a lower price than many old-school insurance companies.
You’ve probably heard of Acorns, the app that rounds up your spare change and invests it into the stock market for you. But have you heard of Worthy?
Worthy operates on a similar principal. Each time you spend some money, the app rounds it up to the next dollar amount and calculates the difference. Except instead of investing that difference in the stock market, Worthy instead invests the money in bonds, earning a smokin’ hot 5% interest rate.
So, for example, if you buy a pint of beer at your local brewery for $5.50, that purchase will be rounded up to $6 and the extra $0.50 will be deposited into your Worthy account. When your balance reaches $10, it triggers an automatic purchase of a $10 bond. Then, when you’re ready, you can cash out your balance at any time. The entire process is run through Worthy’s spiffy app.
If investing in the stock market makes you a bit leery, this may be a more ease-inducing option for you since the bonds earn a flat 5% interest rate. Remember, though, bonds aren’t FDIC-insured like a savings account at a bank. At the same time, they are generally considered less risky investments than stocks.
What’s your favorite fintech app?
We’ve been seeing an explosion in fintech apps in the past few years, and frankly, we’re really excited about it. Having an app that can speak your language on your own terms is more likely to keep you engaged and interested in managing your money.
These three fintech apps are some of our favorites, but there are tons more out there. We challenge you: Go forth and find which fintech apps you prefer for your individual situation. Your wallet will thank you down the road!