Do Money Savings Apps Work?

SavingsBudgeting

Mar 11

Managing finances in today’s world can sometimes feel overwhelming. However, technology offers solutions that can make the process easier and more effective. Among these solutions are money savings apps like Honey and Rakuten. But do they really work? Let's dive into how these apps can help you save money and reach your financial goals.

What Are Money Savings Apps?

Money savings apps are designed to help you save money in various ways. Some apps focus on budgeting and expense tracking, while others, like Honey and Rakuten, offer cashback rewards, discounts, and deals. These apps aim to make it simpler for you to save money on purchases you were already planning to make.

How Do Honey and Rakuten Work?

Honey

Honey is a browser extension that automatically finds and applies coupon codes at checkout when you're shopping online. It scours the internet for the best deals and ensures you get the lowest possible price. Here’s how it works:

Install the Extension: Add Honey to your web browser.
Shop Online: Browse your favorite online stores.
Automatic Savings: At checkout, Honey will search for and apply the best coupon codes available.

Honey also offers a feature called "Honey Gold," where you can earn points (Gold) on your purchases. These points can later be redeemed for gift cards at popular retailers. If you’re ready to start saving money with Honey, click here.

Rakuten

Rakuten (formerly known as Ebates) offers cashback rewards for shopping at partner stores. Here’s how you can start saving with Rakuten:

Sign Up: Create an account on Rakuten's website or app.
Shop Through Rakuten: Visit your favorite stores via the Rakuten platform.
Earn Cashback: Make purchases and earn a percentage of your spending back in the form of cashback.

Rakuten pays out your earnings quarterly, either via check or PayPal. They also offer a browser extension that alerts you to cashback opportunities as you shop. If you’re ready to start saving money with your everyday online purchases, click here to sign up with Rakuten.

The Benefits of Using Savings Apps

Effortless Savings: Once installed, these apps work in the background, automatically applying discounts and earning cashback without requiring extra effort from you.
Financial Awareness: By using these apps, you become more aware of the potential savings on your purchases, encouraging smarter spending habits.
Achieve Financial Goals: The money you save with these apps can be redirected towards your financial goals, whether it's paying off debt, building an emergency fund, or saving for a big purchase.

Potential Drawbacks

While money savings apps are helpful, they are not without limitations:

Privacy Concerns: These apps collect data on your shopping habits, which some users might find intrusive.
Encourages Spending: The ease of finding deals and earning cashback might encourage more spending than necessary. Set a budget for online shopping and stick to it, and make sure that your shopping habits align with your spending and savings goals.
Limited to Online Shopping: Most of these apps focus on online purchases, which may not cover all your shopping needs.

Conclusion

So, do money savings apps like Honey and Rakuten work? Absolutely. They provide a simple, effective way to save money on purchases you’re already making, helping you inch closer to your financial goals with each transaction. However, like any tool, they are most effective when used wisely. Balance your use of these apps with mindful spending habits to maximize their benefits without falling into the trap of unnecessary purchases.

Ready to give it a try? Install Honey or Rakuten today and start watching your savings grow!

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