Disclaimer – This post doesn’t contain any affiliate links and I don’t receive any money from Clarity Money for writing this review.
If you are looking for an app that slices and dices your daily financial transactions and provides great insights into your spending habits, you might want to try Clarity Money. It’s absolutely free and is used by approximately 1.5 million users.
How does Clarity Money work?
Clarify Money in their own words.
At Clarity Money, we believe in transparency and the power of technology to improve people’s lives. We built a system that analyzes your specific financial situation and works to improve it.
We harness the power of artificial intelligence (AI), machine learning and data science to personalize your experience.
While compensation influences whether products appear on Clarity Money, it doesn’t affect the analysis and opinions of our writers or data science team. We feature products that we think you may be interested in, but our site does not feature every company or financial product available.
We’re serious about offering insights that help you better manage your finances.
Thank you for the opportunity to be your financial champion.
Why you should try Clarity Money?
If you are looking for a free tool to do all the number crunching for you and give you valuable insights, this has to be it.
1. Don’t just track you money, gain insights
Unlike other traditional budgeting apps which help you come up with a budget and track your spending, clarity focuses on helping you learn about your spending habits so that you can focus on what matters and cut down on unnecessary expenses.
E.g. It shows you how much you spent on a particular item in your budget like Stack Bucks through out the week/month/year. It then allows you to view all of your transactions related to Star Bucks. I feel it’s a great way to identify and plug those gaps in your spending, which might otherwise go unnoticed.
2. Pull the cord on unnecessary subscriptions
Clarity gives shows all the subscriptions you currently have and close them. Subscriptions are often one of the easiest ways to lose money because of their recurring nature and if you are not on top of them, you’ll lose money silently. Clarity makes it easy to cancel your subscriptions with the click of a button. It shows you how much you could save each year by cancelling the subscription.
3. Categorize your transactions
Clarity allows you to connect your bank accounts and stream all your transactions in one place. You can then assign which category a particular transaction belongs to. This is similar to other budgeting tools except that there is no support adding new categories. It could seem limiting if you want a more fine grained visibility into your spending. But it’s not a deal breaker.
Clarify provides several out of the box widgets related to your spending like your recent spending, your transactions, your spending for the month, your income, etc. Each of these widgets can then be clicked on view more details of each widget. Free Credit Score
4. Categorize your transactions
It’s one of those standard features you’d find with other free tools like Credit Karma or your banking app. It helps you keep a tab on your credit score. Along with this, you can also view all your credit card balances in one place. It can help you analyze your spending patterns with each card and see if you are over spending on any single card.
Personally, I just own one credit card and I have very strict rules on when I use a credit card. So it’s not a big deal for me. But I do know a lot of people have multiple cards and this can help you gain more insights into each card and how you spend using that card. Actual data has been for removed for illustration.
5. Track recurring expenses
Another useful feature of Clarity Money is a widget that helps you track your recurring expenses. It lists all your recurring expenses and shows the details about the due date, amount due and also which account has been linked to pay the bill.
It can be a great way to adjust your budget around the due dates of your bills and plan accordingly. When you click on the widget, it can show you all the recurring expenses and the past bill payments. I have provided one such example below.
6. Automate your savings goals
Like other new age goals based savings apps, Clarity Money connects with Marcus Bank, Goldman Sachs, to open a savings account based on the goals. You can set up simple rules around when you want to transfer money from your checking/savings account into this online savings account and assign a goal to it.
I feel this is a great way to put your savings goals for short term or near term goals on auto pilot. It has nice flexibility to do it on a weekly basis or on specific days of the month.
My Final Verdict
Clarity Money is a great app and can help you get wonderful insights into you spending habits. I don’t consider this as a replacement to your budgeting app. But I would definitely treat this as an add on to your financial tools to help you keep a tab on your spending and do any course corrections based on patterns that emerge.