Review of the Empower Budgeting App in 2024
You can find numerous budgeting apps when you search online. However, selecting the right one that suits your needs and helps you achieve your financial goals is crucial. If you require an app that provides both an overview of your income and expenses and expert investment advice, Empower could be the ideal budgeting tool for you.
How to use Empower's budgeting app tools
By linking their bank accounts, credit cards, brokerage accounts, 401(k)s, loans, and mortgages to Empower, users can receive automatic updates on their account balances, allowing them to track their spending and wealth.
Net worth tracker
Upon logging into the app, users will be greeted with a net worth tracker at the top of the page, accompanied by a graph displaying changes in their net worth over time. Below the graph, the net worth equation - assets minus liabilities - is also shown.
The app's home page displays a breakdown of the balances of any connected accounts, including checking and savings, investment, credit card, loan, mortgage, and HSA balances.
To connect new accounts, simply click the "link more accounts" button on the home page, enter the institution you're connecting from, and log in to allow the information to sync.
The app's menu allows you to navigate to your recent transactions, track activity across your debit and credit card, checking account transfers, and view deposits.
Cash flow tab
The income tab on the cash flow tab provides a detailed view of your monthly income, showing the main transaction categories that contribute to it, such as your job income or interest earned from a high-yield savings account.
Your expenses will be automatically categorized into predefined categories such as personal care, restaurants, travel, and online services. These categories will show you how much you've spent towards each.
The cash flow tab displays your monthly spending in comparison to the same time last month.
Budgeting tab
By accessing the budgeting tab in the menu, you can view a circle graph that displays the difference between your current month's spending and the previous month's. You can also see a breakdown of your categorized expenses. Tapping on the chart allows you to adjust your monthly budget amount.
Investment portfolio, holdings and allocations
When you visit the portfolio tab on the menu, you'll receive a circle graph that displays the percentage of your overall portfolio balance that each account contributes. For example, if your 401(k) accounts for 50% of your total portfolio balance, it will be reflected in the graph. Additionally, you'll receive an overview of the balances on all your investment accounts and any daily changes.
Your transactions, budget, and investment balances can be tracked using these features, which provide a comprehensive view of daily changes.
This platform offers both budgeting and investing tools in a single location. For a management fee, users can schedule a call with a financial advisor to receive personalized investment advice. Alternatively, users can access a free in-app overview of their portfolio balances and allocations.
Compare investing resources
Wealth management with a financial advisor
If you have over $100,000 in assets, you may want to consider using Empower's financial advisor services to get an investment strategy tailored to your goals and circumstances.
An introductory meeting with an advisor, personalized recommendations for your portfolio, and assistance with transferring your assets to new accounts are all included in the services provided.
To utilize the financial advising service, you must pay an annual fee. If you have over $100,000 in assets, you'll pay 0.89%. Customers with more than $1 million in managed assets will pay a tiered annual fee ranging from 0.79% on the first $3 million to 0.49% on assets over $10 million.
If you're seeking a robo-advising platform with lower management fees and access to financial advisors, Betterment may be the right choice. Their premium plan, available to customers with at least $100,000 in assets, includes certified financial planners and a management fee of 0.40%.
Wealthfront, another investment management platform, charges a low 0.25% annual management advisory fee. However, this platform lacks financial advisors on staff, making it ideal for self-sufficient investors.
Perks
Users can enhance their financial knowledge and gain industry insights through the blog section of the app and website.
An investment checkup tool can help you determine the appropriate asset allocation for your portfolio and ensure you are not being charged any hidden fees.
Safety
The platform's security features include user authentication and data encryption to confirm your identity and protect your data when syncing your accounts.
Pricing
To access advanced features on the Empower budgeting app, you'll need to pay. However, the basic version of the app is free to use.
You can receive personalized investment services and wealth management advice from licensed fiduciary advisors for an annual management fee of 0.89% to 0.49% of your investment assets if you have over $100,000 or over $1 million.
Availability and ratings
Empower is available in the iOS App Store and on Google Play.
The rating of the app in the App Store at the time of writing is 4.7 out of 5, with over 42,000 ratings.
The rating on Google Play at the time of writing is 4.1 out of 5, with over 18,000 ratings.
Alternatives to Empower
If Empower doesn't fully meet your needs for budgeting, there are other robust alternatives available.
Goodbudget is a platform that utilizes a unique approach to technology-based budgeting. The platform brings the well-known envelope budgeting technique online, allowing users to monitor their spending virtually. Through the app, users will receive virtual envelopes to categorize their expenses and record their transactions.
You can receive 20 envelopes for free with our app, but if you require more, you can upgrade to an annual subscription of $80 or $10 per month for unlimited envelopes.
YNAB is another budgeting app that utilizes the zero-based budgeting method, which requires users to assign a specific purpose to every dollar in their budget, ensuring that they make the most of their cash, whether it's for paying off student loans and rent or saving for a house.
Users can try YNAB for 34 days without any cost. Following the trial period, they need to pay an annual fee of $99.
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