What Is MoneyPlan$?
MoneyPlan$ is a budgeting tool that provides proactive guidance on how to smartly manage credit and debit, save money, and stick to a budget. Unlike other money management apps that simply track your expenses, MoneyPlan$ advises you on how to use your debit and credit to save money and reach your financial goals.
How It Started
The idea for this application came from the frustration our founder felt while testing budgeting apps currently on the market. Each app only showed his past expenses, focusing on where he had spent the most money. These apps, while advertised as a tool to help customers save money, use the platform to sell products like new credit cards and loans to users.
Our founder asked himself, ‘What is the point of being told what you’ve spent after you’ve already spent it?’ He found it unhelpful to know if he had spent $500 more than his income in the past month, and his expenses increased by 5% compared to the previous month. He needed a tool to help him with future spending and saving.
Developing a solution, our founder created a customized spreadsheet to calculate future spending based on the budget and financial information of the user. Before making purchases, the user could refer to the spreadsheet, read the customized advice, and make a knowledgeable decision.
After using the spreadsheet consistently, our founder saw his savings grow, developed better spending habits, and learned financial discipline. He built the MoneyPlan$ app based on his original spreadsheet. To ensure the app worked properly and performed how it was intended to, he tested the new app for two years. He then enrolled his wife and some friends to test the app and see how it would work for numerous users with unique financial needs. The success of the trial led to the decision to commercialize the app in January 2021. The app is now available on the IOS and Android platforms.
Why a Monthly Subscription?
You can download the app for free on the Apple and Google applications platforms and sign up for our ad-free subscription for only $5 per month. Based on our founder’s original frustrations, he wants to help users avoid advertisements coaxing them into applying for credit cards or purchasing bank products. The genuine intent of MoneyPlan$ is to save users money.
Why are Credit Card part of MoneyPlan Rules?
Credit card are a controversial mean of payment. Some people make purchases using credit cards and some try to avoid them. Personal finance experts dissuade us relying on credit cards with good reason. Many of us misuse credits cards and end up in debt. But, contrary to the popular belief, if you can use a credit card responsibly, you’re much better off paying with credit than with debit. A credit card is nothing but a tool. Whether its effects are helpful or harmful depends on the skills and knowledge of the user, a person with the power to choose how to use the tool (credit card);
Using your credit card smartly can enable you to cover some needs before receiving your paycheck or be helpful in a tough month or to face an emergency. Those unexpected events in life that you can’t plan for. It’s not a matter of if these events will happen. It’s simply a matter of when. If your car breaks, you may need to be towed, to pay for repairs and for a rental car with your credit card. If you have a medical emergency, or a funeral, credit cards can also be useful.
When you make a debit card purchase, your money is gone instantly. When you make a credit card purchase, your money remains in your checking account until a couple of weeks later when you pay your credit card bill. Hanging on to your money for this extra time can be helpful.
Credit cards have risks but not with MoneyPlan. The risks of having credit are:
- Borrowing more than you can afford to repay; MoneyPlan has a spending limit feature and utilization ratio feature to prevent you from borrowing more than you can afford or go over your credit limit.
- If you don’t make your payments on time, you’ll damage your credit record and pay late fees; MoneyPlan will always display the required due date so that you can make on-time payment.
- Having to pay high interest: the minimum two payment feature and the recommended minimum payment of MoneyPlan help accelerate your credit card balance pay off thus minimize the interest applied. Plus, MoneyPlan does not allow cash advance.
- Carrying a balance: sometimes carrying a balance makes sense if:
- You have a financial plan like with MoneyPlan.
- You have a system in place to be smart with credit like MoneyPlan.
- You are using a low-interest credit card with no annual fees to pay for unexpected expenses as per MoneyPlan recommendations
- You are not making any cash advance using your credit card as per MoneyPlan recommendations