4 Best Benefits of Bank-Backed Financial Planning Tools and How You Should Use Them
Managing your finances isn’t always easy, and it may feel confusing and overwhelming for some. If this describes how you feel about your finances, know that you’re not alone. A recent MarketWatch survey found that 88% of respondents feel some level of financial stress. But it doesn’t have to be this way.
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In fact, there are personal financial management (PFM) tools from your bank that you can use to put yourself on the right track financially. Here are some of the best reasons to use bank-banked financial planning tools.
Credit Human explained that prioritizing your spending is a crucial step to taking control of your finances — and some PFM tools from your bank can help.
Depending on your bank and the tools offered, you could get help categorizing your spending into buckets, such as groceries, utilities, housing and entertainment, to track your spending and help you make adjustments along the way.
Spending prioritization can help prevent overspending on unnecessary purchases and keep you on the right track to reach your goals.
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Financial products your bank might offer, including life insurance or a savings account to build an emergency fund, are important for adopting beneficial money habits and creating a well-rounded financial plan that offers security. In fact, according to Charles Schwab, financial planning can help people improve their saving and budgeting habits.
Incorporating financial tools that develop positive habits and help you make a financial plan is a great way to set yourself up for financial success.
Credit Human also indicated that some PFM tools allow for streamlined financial management. For example, if you have all your financial accounts at one bank, you may be able to get a comprehensive overview of your finances all on one page and make financial plans accordingly.
This may make it easier to simultaneously track your income, expenses and financial growth.
Your bank may offer tools or strategies to help you start saving (if you haven’t already). With many banks, you can even set up automatic savings so no action is needed on your part to boost your savings.
Large sums of money aren’t required to start building your savings, and even starting with small amounts can have an impact over time. Creating smart saving and budgeting habits is crucial to increasing your financial security.
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