Sometimes managing your finances is harder than earning the money in the first place. And we know that taking control of your money can sometimes make you feel like you’re learning a foreign language. So we’ve created a handy glossary of must-know money terms from the MoneyStrands app that affect all aspects of your financial life.
Let’s get started!
1. Account Aggregation
Easy as it looks, Account aggregation is the first step to get on the path toward financial empowerment. Once you link your bank account to the MoneyStrands app, you can see an overview of your financial life.
Have more than one bank account? That’s totally fine – you can add as many as you like. You’ll get instant access to your account balances, financial transactions, spending habits, budgets and more. All you need to make smarter decisions today.
2. Split Transactions
Split Transactions are extremely important if you’re interested in accurately tracking your spending. This feature allows you to divide up a transaction into more than one category. For example, the different items bought with a single purchase at a particular store.
You can split a transaction in the MoneyStrands app by clicking the transaction you want to split and clicking the Split icon. Within the box you can enter the desired amount and edit the transaction category.
3. Cash Flow
Cash flow is one of the most powerful concepts in personal finance. It’s basically your income minus your expenses. It works like this: if your income is higher than your expenses, you’re in good financial shape. But if you spend more money than you make, you’re cash flow negative and, therefore, accumulating debt. Simple, right?
You can improve your personal cash flow by cutting your expenses and/or improving your income. This last one is harder than cutting your expenses, but there are things that you could do, such as moving your money to a high-interest savings account, earning more from your job (or outside of your job) or making your money work harder by investing.
Ok-To-Spend® is a feature that automatically calculates how much you can indulge in the little extras without breaking the bank. Its formula is: (Expected Income + Incurred Income) – (Expected Expenses + Incurred Expenses) – Savings Goals monthly contribution.
It basically shows you how much money you have that hasn’t been assigned to a specific purpose. As a result, Ok-To-Spend® takes the stress out of your money and allows you to have a little fun!
5. Calendar View
This Financial Calendar feature displays the historic and future transactions on the day they are predicted to happen. It’s a really simple but effective tool for keeping an eye on your cash flow and making sure all your bills are paid on time.
Events can be one-off or recurring. For example, if you buy groceries once a week, you can list this event under the days you plan to go to the market. You can also use the calendar as a reminder of expenses that you need to take care of.
No matter how you feel about the B-word, creating a budget puts you in control of your money. At the very least, you need to control what’s coming in and what’s going out each month. The simplest way to perform this analysis is to add a budget, select a category (food, health, home, leisure… you name it), and enter the amount per month.
MoneyStrands basically helps you automate the process and streamlines beautiful charts and graphs of your spending. Why is this useful? Well, budgeting not only prevents you from overspending, but it also enables you to see patterns emerging in the way you spend your money.
7. Saving Goals
A goal without a plan is just a wish. If you just live on a meandering, day-to-day basis, it’s likely that your life will largely be the same 1 year, 3 years and 5 years from now. To put yourself into real action mode, MoneyStrands can help.
The Saving Goals feature enables you to create, manage and achieve personal saving goals. Both short and long term goals can be set, such as planning a summer vacation or buying a new car.
People are judgmental. Admit it. We love to see what everybody is doing by scrolling through Instagram, Snapchat or Facebook to compare our lifestyle to theirs. So why not do the same with your finances?
The community feature allows you to benchmark your expenses with others. In other words, you can anonymously compare your financial behavior with that of your peers. Determine your peer group by setting demographic attributes such as age, gender, city, etc. The more information you add, the more accurate the comparison is.
Go take action!
If you’ve read all these financial terms, you’ve got the groundwork covered to begin building, tweaking or validating your approach to money. Log into the MoneyStrands app today and keep being a Financial Badass! Keep it up!
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