The Salary Calculator

A rundown of the best budgeting apps 

by Madaline Dunn

As we enter a new financial year, it’s always worth doing a spring clean of your finances to see where you’re at, plan ahead, and save – if that’s on your agenda. This is where budgeting apps come in. These days, there are so many to choose from, with each offering a range of different features perfect for accommodating people’s varying needs.

This week, at The Salary Calculator, we’ll walk you through the following:

• How to find the best budgeting app for you,
• How a budgeting app can benefit you,
• Some of the best apps on the market right now.

How to evaluate which is the best budgeting app for you

When you’re determining the best budgeting app for you, there are a number of factors that you’ll want to consider; for example, first and foremost, it’s important to check that the app is available on your device – so check whether it’s available on App Store (for iOS) or Google Play (for Android).

Another consideration is whether or not the app is free, or offers a free trial. Luckily, the majority of the best apps on the market are entirely free and offer a wide range of features. However, there are apps that are tiered and only offer users certain features based on their subscription level.

An incredibly important feature of an app, especially when you’re providing personal information and, in some cases, access and syncing to your bank accounts, is security. In such situations, assurance that your data is protected is of utmost importance. Check to see if the app is FCA regulated, whether there’s multi-factor authentication to prove your identity, and encryption.

Customisability is also a key consideration, and having the option to make a budgeting app work for you, and add your own spending, budgeting, and saving categories can really help you get in control of your finances.

How can budgeting apps benefit you?

Budgeting has a whole raft of benefits, including giving you insight into your spending habits. This is especially true with apps that have a more visual element and include graphs and charts. Seeing this data organised into clear categories can really help break down the numbers.

Once you have a snapshot of your spending habits, this can give you the power to identify areas where you could be overspending and, subsequently, help you create a savings plan. Savings plans can have a wide range of different applications, whether it’s wanting to save for a holiday, a new course, or even more long-term goals, like saving for the deposit on your first house, or creating a retirement fund.

Another element of this could be creating an emergency fund, which can act as a parachute when facing financially difficult times.

What are some of the best budgeting apps?

Below, we’ll walk you through some of the best budgeting apps on offer.

Money Dashboard – This app is award-winning and stole the title of ‘best personal finance app” in 2017, 2018, 2020 and 2021. It allows you to categorise your transactions automatically and is also highly customisable and comprehensive. Another plus is that it is very visual, with graphs and charts that help break down your income and expenditure easily. It also has an income and expenditure prediction function and is totally free with no premium features.

Some of the drawbacks are that it’s not the easiest budgeting app to set up, and it takes a fair bit of input to personalise and categorise.

Plum – Plum is similar to Money Dashboard, but instead utilises its AI function to calculate how much you can afford to save, based on your previous spending habits. Further to this, based on its analysis of your data, it also makes recommendations for how to save.

It does, however, have tiered membership, all offering different features, which are as follows:

• Plum Basic – free
• Plum Plus – £2.99 a month
• Plum Pro – £4.99 a month
• Plum Premium – £9.99 a month

With all premium tiers, customers also have the option of a free 30-day trial.

It’s also important to note that there are different pockets where you keep your funds. The primary pocket offers instant access to your funds but does not pay any interest and is also not protected by the Financial Services Compensation Scheme (FSCS). Easy Access pockets are FSCS protected, but also require you to give one day’s notice for withdrawal of funds and pay interest. With premium accounts, you can also access higher interest.

Hyperjar – This app is often highlighted as a go-to for couples and families and is a budgeting app with a twist. With this app, you use a prepaid card, which you load your money onto. From there, via the app, you assign money to different jars which you label. A useful feature is that you can even auto-link shops to the jars and use those jars to pay when you visit a particular store.

When abroad, you can use this for purchasing goods and services with no foreign transaction fees applied.

Any money that you load onto your cards is managed by Modulr FS Limited, an authorised Electronic Money Institution which is regulated by the Financial Conduct Authority, but your money is not covered by the FSCS. Another drawback is that you can’t make ATM withdrawals with this app.

Cleo – Cleo targets the younger generation and has been dubbed the Gen Z super app. It’s a money management app that uses an AI chatbot as a financial assistant. It tracks your spending patterns, helps you manage your budget, and recommends amounts to save in your Cleo Wallet.

Unlike some of the other apps on our list, it’s simple and straightforward to set up; that said, the free version of the app is considerably more limited than some of the other free apps on our list.

Its premium versions include:

• Cleo+ which costs £5.99 and comes with an overdraft service that’s interest-free and must be paid back within 3 to 28 days and also offers cashback.
• Cleo Builder, on the other hand, is a much pricier version, at £14.99 per month, and primarily functions to improve your credit score.

Emma – Like some of the other apps we’ve listed, Emma uses open banking to connect and combine all your bank accounts, investments and credit cards. This means that you can get a snapshot of all your spending in one place. One of the key free features of Emma is that it allows you to identify all of your different subscriptions, even the ones that you’ve forgotten about.

You can also enter your payday date and set a monthly budget and it offers a fee tracker and savings advice. This is another app which is easy to set up and navigate, which is a huge plus for those who don’t feel particularly tech-savvy, but there are some drawbacks. The Emma app doesn’t work with all banks, for example; compatible banks include:

• American Express,
• Barclays,
• First Direct,
• Lloyds,
• Nationwide,
• NatWest,
• TSB,
• Revolut,
• Starling Bank,
• Monzo.

Additionally, the app doesn’t offer users a day-by-day or month-by-month comparison, so it isn’t as comprehensive as other apps.

Likewise, as with some of the other apps on our list, you won’t be able to access some of the features without premium subscriptions:

• Emma Basic is free,
• Emma Plus is £4.99 per month,
• Emma Pro is £9.99 per month,
• Emma Ultimate is £14.99 per month.

Tags: 2023, apps, budgetting, Personal finances, savings

Couples and finances

by Madaline Dunn

In a relationship, there’s nothing less romantic than finances. However, research shows that speaking more openly and transparently about money can actually bring you closer together. This is especially true during the cost of living crisis, where research shows money is increasingly the focus of tension and arguments.

In this week’s blog, we’ll explore:

• Couples financing in 2023
• What financial infidelity is
• How to get better at financial planning and build financial intimacy

Couples and money talk in 2023

Research shows that when it comes to money, in relationships, pressure has really piled on in recent years, with the cost of living crisis making things increasingly difficult.

As a result, more and more people are reaching out for help in these areas. According to the website Counselling Directory, there has been an increase in the number of people using its site to find a therapist and in a survey of the Directory’s therapists, a third reported more clients have been talking about relationship problems caused by rising living costs.

Likewise, an Aviva study found that while 5% of couples argue with their partner about money daily, 12% have noticed a significant increase in the number of finance-related arguments since the cost of living crisis ramped up.

Financial infidelity

While many have heard of emotional or physical infidelity, financial infidelity is lesser known but equally as destructive. This kind of infidelity happens when there is dishonesty relating to personal finance in a relationship, whether that’s having a secret credit card, hiding debts or purchases or having a secret gambling addiction.

Aviva research shows that this kind of infidelity is actually rather prevalent, too, with two in five of those in a relationship or marriage committing ‘financial infidelity’. For example, 38% of people admit to stashing money away, with the amount squirrelled away averaging at over £1,600; 32% have more than £2,000 stashed away.

There are many reasons why people hide financial decisions from their partners, but researchers suggest that often, one of the main reasons is shame.

Interestingly, couples from the younger generations are more likely to commit financial infidelity. For example, 63% of Generation Z couples are followed by 54% of Millennials.

Speaking about this, Alistair McQueen, head of savings and retirement at Aviva, said: “Being upfront, honest, and transparent about your finances with your partner can help avoid problems in the future.”

Adding: “Having a general view of how much is being spent each month, along with overall debts or savings across the household can be important when it comes to making decisions about longer term financial objectives like when you can afford to retire, or whether to downsize your home to release some capital to help your children.”

Moreover, many are able to recover from financial infidelity. The road to recovery can begin by being honest with each other, and acknowledging that financial infidelity has taken place. Listening to each other without judgement can be difficult, but experts explain this a key step to resolving the situation. Likewise, experts also say it can be an opportunity to examine your relationship and finances and, in the future, strive for transparency.

Enhancing financial planning and building financial intimacy

Research shows that while over half of the marriages end in divorce, most divorcees cite “disagreements over money” as the biggest reason for their split. As a result, experts suggest that having a clear understanding of where your respective finances are, planning things out together, and embracing transparent financing can help.

Some tips for enhancing financial planning and building financial intimacy include:

Discussing, setting and achieving shared financial goals: When you’re both agreed on a direction you want to head toward, it’s easier to budget, make a budget, track your expenses, and build savings for the future. Initiating conversations might be difficult, but there are some top tips for making things as smooth as possible:

• Avoid discussing money before you go to bed,
• Don’t drink alcohol before discussing finances; it can often make people more disinhibited, leading to less productive financial conversations,
• Make finance conversations a regular occurrence rather than a one-off. This will help you both feel more comfortable discussing money and forging financial plans.

Have an open, honest conversation about single versus joint accounts and what will work best for you both: These days, the split is about 50:50 when it comes to shared bank accounts, with many preferring to keep their finances separate from their partners’ and 49% doing so in order to remain financially independent. Of course, there are pros and cons on both sides. A joint account can help you and your partner keep things all in one place for savings and bills, but it can have wider financial implications, so make sure to think it through. For example, if you enter joint debt together, for example, a mortgage or loan, you’re both liable for the payments.

Equally, if you’ve decided you no longer want a joint bank account after opening one up, there are some tips to follow:

• Be sure to open up a new account first,
• Cancel or redirect direct debits,
• Transfer all your finances, recurring payments/bills and deposits,
• Split your money fairly.

Reach out for financial support: Research shows that financial planning support can help couples gain insight into their finances. Further, those who receive financial planning support are more likely to be unified in their financial decisions, and have more transparent communications about money.

Regularly check in about finances: Making sure to regularly review your financial situation with your partner can be a healthy way to make sure you’re both on the same page; whether that’s regarding individual concerns and anxieties, updating finance goals, or reassessing budgeting.

Decide who will pay for what and how bills will be split: A significant point of contention between couples is often how the household income and spending should be split. Experts have found that around 16% of arguments have their roots in bill contributions. So, to alleviate some of the stress and strain here in relationships, make sure to come up with an agreement that suits you both.

Tags: bank account, Economy, joint bank account, Managing money, Personal finances

Coping with financial challenges: Ways to save money in 2022

by Madaline Dunn

These days, almost everyone is feeling the pinch. According to recent research from the Food Standards Agency (FSA), more and more people view affording food as a concern and over three-quarters of UK consumers (76%) have voiced their unease.

Likewise, BritainThinks also found that the cost of living is now the dominant concern for UK households, with rising prices being a major concern for 90% of people. Shawbrook Bank even found that around 18% are already losing sleep over their concerns around money, and a quarter of those surveyed cited managing their finances as the primary cause of their stress.

At The Salary Calculator we understand how difficult it can be to cope with the cost of living crisis, and have compiled a list of ways to save money when faced with financial challenges:

• Access to food banks 
• Free sanitary products and contraceptives
• Baby food & formula
• Toys & Books

Access to food banks

Recent research has shown that over 22% of people surveyed by the FSA, as a result of financial struggles, have been forced to either miss a meal or reduce the size of their meals. It will come as little surprise then that people’s use of food banks has risen dramatically, with the number of those turning to food banks increasing from around one in 10 in March 2021, to almost one in six this March. 

Speaking about this, Prof Susan Jebb, chair of the agency, said: “In the face of the immediate pressures on people struggling to buy food, food banks are playing a vital role in our communities.” That said, you may be in the dark about how to go about accessing a food bank, but don’t worry, we’ll explain. To begin with, you’ll need a referral – you can start the ball rolling through accessing your local Citizens Advice. Once there, you’ll be asked about your personal circumstances and they will determine whether you’re eligible. That said, if you’re unable to get a referral this way, you can ask an organisation/body that you’re receiving support from, this could be a social worker, school staff, or GP.

Once you’ve received a referral, you’ll be given food vouchers for a food parcel containing three days’ worth of non-perishable food. Alongside the food parcel, you’ll also be offered advice on finance, debt, and government support. 

Sanitary products & contraceptives

Period poverty in the UK is alarmingly widespread. A recent survey in the UK uncovered that one in four girls and women aged 14-21 (28%) are struggling to afford sanitary products and almost one in five (19%) have been unable to afford these at all since the beginning of 2022.

With a lack of access to sanitary products, these women and girls have been forced to use substitutes such as ​​toilet paper (80%), socks (12%), newspaper/paper (10%), or another kind of fabric (7%). 

Commenting about the horrific situation many women and girls are facing, Rose Caldwell, CEO of Plan International UK, called the findings “devastating.” She said: “As we look to an uncertain future, many more families will face tough financial choices, and more young women than ever are likely to face issues affording the products they need,” she said. “Period products are a necessity, not a luxury, and they need to be treated as such.”

However, while we wait to catch up with Scotland, which is now the first in the world to have made period products free, there is assistance for those facing period poverty. Food banks now stock sanitary products, and you can find your local food bank through the Trussell Trust website which contains a directory of nationwide food banks. In some cases, you won’t need a referral. The supermarket Morrisons has a scheme where those in need can get free sanitary products by asking for a package for Sandy. Bloody Good Period, Period Poverty, Freedom4Girls and Hey Girls can also provide help.

When it comes to contraceptives, you can access them for free from the following: 

• Contraception clinics
• Sexual health or GUM (genitourinary medicine) clinics
• Some GP surgeries
• Some young people’s services
• Pharmacies

It’s also important to note that contraception services are free and confidential, even for those who are under the age of 16.

Baby food & formula

If you’re facing financial hardship and you are pregnant or have a child under four years of age, you may be eligible for assistance buying food and milk. This can be accessed through the NHS’s Healthy Start program,  where and if eligible, you will be sent a Healthy Start card with money on it, which is updated with funds every four weeks, so you can use it to buy:

• Plain cow’s milk
• Infant formula milk (based on cow’s milk)
• Healthy Start vitamins
• Vitamin drops 
• Fresh, frozen, and tinned fruit and vegetables
• Fresh, dried, and tinned pulses

There are also specialist “baby banks” which are run by local organisations and charities dotted across the UK. Through baby banks, you can access nappies, wipes, baby food, clothes, toiletries, toys, cots, sterilisers, baby baths, and medication. Some active baby banks include London-based organisation Little Village, Baby Basics, and The Nappy Project. 

To find out where your local baby bank is, reach out to Citizens Advice and Trussell Trust, or use Little Village’s interactive baby bank tool.

Toys & Books

While there are a fair few options available for food, drink and sanitary products, you may be wondering if there are organisations, charities, or schemes that can help you access toys and books for your youngsters. After all, a Gingerbread survey found that when looking to make cuts to spending, toys, books and games are often cut out first to make ends meet (52%).

When it comes to accessing books, BookTrust is the UK’s largest children’s reading charity, and entitles every child in England and Wales to a free Bookstart pack before they are 12 months old and again aged 3-4 years ( or 27 months old in Wales).

Likewise, for access to toys, you may find it helpful to look into toy libraries, which are exactly what you’d expect them to be, libraries where instead of borrowing books, children can borrow toys. There are more than 1,000 toy libraries around the UK, and yearly membership is low, costing as little as £3 per family for a year pass. Typically, toys can be borrowed for up to two to three weeks.

Tags: cost of living crisis, Economy, Finances, food banks, Personal finances

Energy prices on the rise

by Madaline Dunn

News of rising energy prices will come as another financial knock to many people across the UK after what has been a turbulent two years. The cost of living is set to increase once again following a worldwide squeeze on gas and energy supplies.

In October, around 15 million homes saw their bills up 12%. Unfortunately, the situation is only likely to worsen, with industry leaders calling for government intervention to help tackle the “national crisis”.

At The Salary Calculator, we’ll walk you through:

• How much you can expect costs to rise by
• The causes of the price hike
• Whether there’s anything you can do to navigate this

How much will costs rise?

In the UK, the trade body Energy UK has released some bleak forecasts regarding energy bills, outlining that they could rise by 50% by springtime, which will ultimately hit low-income households and small businesses the hardest.

As a result, reports say that the energy bill for the average household could increase by £600 by April – and looking forward, next year, bills could reach £2,200-a-year on average.

Of course, with other rising living costs, this is concerning news for many. Alex Belsham-Harris, of Citizens Advice, says that already people are feeling the pinch. He added: “With major hikes to energy bills from April and other costs of living rising, the quickest and easiest way for the government to provide direct support for those hardest hit will be through the benefits system.”

What’s causing the hike?

Energy costs are on the rise for a number of reasons. Wholesale energy prices have surged as economies emerge from the pandemic, with demand increasing and fewer exports. Last year’s cold winter in Europe also played a part. So, there has been a range of technical and geopolitical issues at play. Since 2020, energy prices have risen by 250%, and in August, they rose further by a staggering 70%. This has led to more than 20 domestic suppliers going bust as the price cap prevented companies from charging consumers more to deal with this.

Although Ofgem’s price cap has limited energy suppliers in regards to how much they charge, this is to move in April and could reach £1,995-a-year per household.

What can you do?

It can be stressful thinking about the prospect of rising energy prices, and it’s understandable to have concerns and questions.

Some important information to remember is that if you’re struggling to keep up with payments, don’t put your head in the sand. Reach out to your supplier as soon as possible. Suppliers can help set up an affordable payment plan if you feel things are spiralling – they may even pass on the details of charities that can help you with your financial burden.

That said, if you feel as though the situation has advanced beyond that, it may be time to reach out to a debt adviser to help you navigate missed payments and the like.

Likewise, it’s worth noting that if your provider is one of the unlucky ones caught up in the crisis and goes bust, and you have credit on your account, it won’t be lost. Instead, your balance will be transferred to your new energy supplier – the same goes for any debt on your account; it will be passed on.

Of course, there are ways you can use energy more efficiently, too, to keep your bills lower. Simple things like not leaving appliances on standby and switching off lights when they’re not needed can have a big impact. Switching to low energy light bulbs can keep costs lower, too, as can using draft excluders and investing in better insulation and double glazing – although the latter may not be financially viable options for everyone.

Tags: Economy, Energy prices, living costs, Personal finances

The best credit card deals out there in 2021

by Madaline Dunn

When it comes to the world of credit cards, there are lots of benefits. A credit card helps boost your credit rating, offers you protection and freebies, and gives you some financial wriggle room.

That said, it can be hard to know where to start, and often people have lots of burning questions that need answering. It’s also important to stay informed about charges and fees.

At The Salary Calculator, we’ll make sure that you’re up-to-date with all the latest credit card deals out there in 2021. Keep reading to find out more.

Reasons you could benefit from a credit card

To some, credit cards can seem intimidating, and many believe it only leads to debt, but they can be helpful in some circumstances. Credit cards can help you with your finances and assist you with building a good credit report. If your credit is in the red, and you’re looking to make a big investment like a house or car, a credit card can push it into the green.

Some credit cards also enable free borrowing and purchase protection, as well as offering reward deals so that you can earn free money too.

That said, it’s important to be aware that you shouldn’t rely on credit cards to borrow money, especially if you don’t have the funds for repayments. Plus, when the interest-free period ends, you can be faced with some pretty significant charges. Credit cards also have varying levels of APR, which refers to the rate at which you’ll be charged for borrowing. So, make sure you don’t get caught out by the small print!

Santander All in One Credit Card

Arguably, the biggest plus of this credit card offer is that cardholders can benefit from 26 months interest-free on balance transfers. Other benefits include a 0.5% cashback on all purchases and no foreign transaction fees.

However, it’s not all sunshine and rainbows, and the card does have a £3 monthly charge, which works out to £36 a year. Another disadvantage of this card is that you will also be charged transaction fees if you withdraw money – interest applies here too. Moreover, it has an APR of 23.7%.

To be eligible for this card, you must have an income of at least £7,500 a year and be 18 or over.

Aqua Advance Credit Card

This card is excellent for people who are looking to build credit and requires no credit rating. It has an initial APR of 34.9%, but customers who stick with this card will be rewarded through staggered APR reduction. After 12 months, if you keep up with payments and stay within your limit, your rate could be reduced by 5% each year. This means that the APR can go as low as 19.9%.

This card also offers access to the Aqua Credit Checker, allowing you to view your credit rating and its improvement.

Other benefits include credit limits of between £250-£1,200 and no extra charges for purchasing abroad.

To be eligible for this card, you must fulfil a specific criterion. Applicants must be over 18 with a permanent address. Additionally, you must have a current UK bank or building society account and must not have been registered as bankrupt in the last 18 months. Equally, you cannot have any ongoing bankruptcy proceedings against you.

Finally, eligibility also depends on not receiving a County Court Judgement (CCJ) in the past 12 months. You also cannot already have an Aqua card or have an Aqua, marbles, opus, Fluid card taken out in the last 12 months.

American Express Platinum Cashback Everyday Credit Card 

This is a great card for those looking to get a little more bang for their buck with no annual fee. It offers a 5% cashback on all purchases up to £100 for the first three months. This does, however, decrease over time.

That said, it’s important to note that you need to spend £3000 or more to access cashback offers, and unfortunately, it’s not available for those with a bad credit history. It has an APR of 22.2%,

To be a successful applicant for this card, you must be aged 18 or over and have a clean slate regarding debt. Applicants must also have a permanent UK address and a current UK bank or building society account.

M&S Shopping Plus Credit Card

For those looking for a credit card to spread the cost of large purchases, this is the perfect one for you. With no annual fee, it also boasts a 20-month interest-free period of new purchases. That’s right, no interest at all for 20 months! Accompanying this, the card also offers cardholders an 18-month interest-free period for balance transfers. That said, this only applies within the first 90 days. Also, remember if you opt for this card, you must pay off your balance before the interest-free period ends.

As with everything, there are pros and cons to this card, and the reward points you earn through this card are only available in the form of M&S vouchers. So, this isn’t necessarily a great deal for everyone. It also has an APR of 21.9%.

Eligibility for this card requires that applicants are over the age of 18 and UK residents.

Barclaycard Rewards Credit Card

This is a great travel card for those who want to earn as they spend abroad. With a 0% foreign transaction fee and no annual fee, this is a pretty attractive deal. This card also offers 0.25% cashback on all spending and savings on live events with Barclaycard Entertainment.

However, compared with other credit cards, a 0.25% cashback rate isn’t the best deal and it does not offer a balance transfer option. It also has a 22.9% APR variable.

Applicants must be aged 21 or over, have a personal income of £20,000 or above, and have had a permanent UK address for at least two years. Those looking to get in on this deal must also have at least four years of managing credit, make payments on time and be able to afford repayments.

Lastly, applicants must not have had Individual Voluntary Agreements, CCJs, and must not have declared bankruptcy in the last six years.

Tags: 2021, Credit card, Economy, Personal finances, The Salary Calculator