It can be difficult to stick to a budget, especially when prices are rising. In fact, according to FINCAP, over a third of adults in the UK (39%) currently don’t feel confident managing their own money. There are, however, many ways in which to learn how to manage your budget, and many of them don’t require any specialist knowledge or experience in spreadsheets, setting reminders, or working out complex budget formulas. Budgeting apps are easy to access, and can be on hand (or in pocket!) to allow you to consistently budget better. Here, we take a look at how you can leverage the technology you already have to secure a brighter financial future.

What Are Budgeting Apps?

In essence, budgeting apps are software applications that have been designed to assist people in managing their money effectively. There are various features that can be found in budgeting apps, such as income trackers, expenses management, and savings and they can be accessed easily from both Android and iOS devices. Together, these can give you a quick overview of your financial health, and some even provide tips and guidance as to how to make improvements.

How Do They work?

You will have to give the app a fair few details about your financial income and expenditure to get started. Putting in your income and expenditure manually is an option with some budgeting apps, whereas others connect directly with your bank feed to assess your financial position. They can then give you an insight on setting up a budget for your household as well as reminding you to stick to it.

There are various additional features within budgeting apps that you may want to make use of, including:

• Debt management features – some budgeting apps will show you how to pay off your debts, and can help create a plan to get you debt free.
• Financial goal setting – It may also be possible for you to set financial.saving goals within the app, and track your progress towards them. This can also help you keep motivated when budgeting.
• Expense tracking – Tracking your expenses is a vital feature within budgeting apps. If you can see in real time where your money is going, you will be able to get a better handle on it. In some cases, you can set spending limits, so that you don’t overspend.

Is It Okay To Use Free Budgeting Apps?

There are some free budgeting apps available on the market catering to various different types of users. Some popular choices include Plum,GoodBudget and Spending Tracker. However, while these have free versions, you may not benefit from some features included with the paid-for versions.

Are Budgeting Apps Trustworthy?

As with any app that you give your financial information to, you need to make sure it is trustworthy. When researching which budgeting apps to use, consider those who are transparent on how they process your data in accordance with the latest legislation for data protection. Also, choose one that takes cyber security really seriously. Encryption protocols, secure login, and a detailed privacy policy are all things that you should look for.

In addition to this, it would be wise to check user reviews and ratings. Use an independent review website to do so, as this will provide a better picture of the experience of those using the apps. Trustworthy budgeting apps only usually require access to vital financial data, and should not ask you for information outside of this. If they do, it might be best to question whether this is the app for you.

How To Get The Best Out Of Budgeting Apps

Once you’ve chosen the app you want to use, entered your details and set up your goals, the app won’t do everything for you. It’s important to recognise that you will have to review your spending and saving, and update it where necessary. If you know you will struggle to remember to do so, opt for an app that notifies you of significant budget events, or that reminds you to review your spending each month. However, once you’ve set reminders it is likely that it will become second nature to keep on top of your budget going forward.

In short, if you’re considering using a budgeting app for your personal or household finances, it could be wise to research what’s out there before you download one. Getting the right app for your needs could help you manage your money better, leading to a brighter financial future.

Whatever your reason for starting a business may be, one thing is certain, you'll need to have a well-thought-out plan before opening your doors for business. It goes without saying, you'll need financial resources — capital — to build this vision of yours into a reality. You know what they say about all great plans having solid foundations. And that costs money! So how much money will you need? The following 6 tips on how to plan your budget will help you figure that out.

1. Know Your Business Needs

Before you can determine how much money you need to start your business, you'll first need to know what it is that your business does and the products or services it will offer. Knowing how much money you're going to invest in the company and overhead costs such as payroll, taxes, the cost of getting a registered office address for a limited company in the UK or other locations, rent, utilities, and other expenses is vital for planning a budget. To do this, you must know how to calculate your fixed costs and your overhead costs. 

Fixed costs are those expenses that don't change regardless of how much or how little business you have. Think rent, utilities, etc. To determine your fixed cost per month for one year, multiply the yearly amount by 12/52 (there are 52 weeks in a year) = monthly fixed cost before adding on any other overhead costs.

Now add your overhead costs to your monthly fixed cost: advertising, marketing, phone bills, insurance premiums, and any other expenses that vary from month to month. Subtract this amount from the gross income you expect to generate each month after expenses. The resulting figure is your net profit per month. Here's an example:

• Monthly Fixed Cost = $500/mo 
• $500 x 12 months = $6000 yearly fixed costs 
• $6000 + $300 for utilities ($300 x 12 months) = $9000 monthly overhead cost 
• Projected Monthly Gross Income = $25,000 (from sales and services provided by business) 
• $25,000 - ($9000 + $3000) = $10,000 monthly net profit

2. Determine The Number Of Months You Will Need to Break Even

To determine the number of months it will take you to break even on your investment, divide the total cost needed to start your business by your projected monthly net income after overhead costs are paid. This is how many months it would take you to pay off all opening expenses if no new business came in during this time. Let's use the example above for this calculation: 

• Breakeven point (months):  
• $25,000 / $10,000 = 2.5 months to break even

3. Determine The Additional Cash You Will Need to Keep Your Business Afloat

Let's face it, there are times when our business doesn't generate enough revenue to cover expenses during that period. Perhaps you've hired staff only to realise it would be difficult for them to find clients right away, or you thought your marketing campaign would attract more customers than it did. So now you're stuck with overhead costs but no income coming in. This is where your contingency fund comes into play - another very important part of your start-up plan. To determine the amount of money needed as a contingency fund, take what you currently have plus any additional cash needed until your business can stand on its own two feet without needing a subsidy from your personal account. Here's an example:

• Additional Cash Needed = $3000 for 3 mo (3 months' projections)
• $25,000 + $3000 = $28,000 total cash needed to start up business

4. Use An App

If you're a bit of a techno-geek, then why not try an app to help calculate your budget? There are many to choose from. When choosing an app to help with your budget, consider the following factors:

• The number of features and functions that will best suit your business needs and operations.
• How user-friendly and intuitive it is (i.e., how easily you can learn to use it).
• Whether or not you will be able to access it from different devices (desktop, smartphone, other tablets) when you're on the go (so make sure your device can support the software if this is important to you). 

5. Get Professional Help

Perhaps the best way to determine your budget for starting a business is by getting some professional help. There are plenty of business advisors who can come up with an accurate projection based on their own experience and advice tailored specifically to your business needs. How much this service will cost depends on the complexity of your business (and how much guidance you need) but it's worth considering, especially if you're venturing into uncharted territory or if you don't know where to begin.

When choosing a professional to help with your budget, consider the following factors:

• The number of years they have been in business and their success rate.
• How experienced they are with small businesses (you'd be surprised how many big-company executives don't know what's involved in running a startup).
• Whether or not you feel comfortable interacting with them on your own terms (as opposed to following their requests or conditions). 

6. Be Realistic About Your Startup Budget Plan

Many hopeful entrepreneurs make the mistake of planning big-dreaming big, hoping for big profits and cash flow, only to become disappointed when things don't turn out as planned. You can avoid this by keeping your budget realistic and making sure the numbers add up. To illustrate the importance of planning your budget realistically, consider this example:

Let's say your budget calls for $8,000/mo in sales and you want to bring in $8,000/mo before taxes. You anticipate needing $2,500/mo for rent and utilities because you plan on having 5 full-time employees. Here's what will happen if things don't go as expected:

• Month 1 - Sales = $8,500 (sales are higher than anticipated)
• Cash Flow = $0 because all cash is tied up into expenses

When deciding on a budget, consider what needs to happen in order to reach that goal - and then plan accordingly. The key is not to be afraid of making mistakes along the way as long as you learn from them and adjust accordingly. The first step is always the hardest but once you're there, it's only a matter of doing it over and over again until you get it right.