Navigating the world of budget apps, it’s clear that most provide a basic service: they connect to your financial accounts and help track your spending. Yet, some apps, like Rocket Money, promise more.
If you’re on the hunt for an app to oversee daily expenses, our Rocket Money Review reveals it’s not just about tracking. Rocket Money actively assists users in canceling unnecessary subscriptions and in planning for upcoming expenses. Its unique, goal-driven approach aims to save users money while offering a deep dive into spending habits, underscoring its potential as a formidable ally in securing financial stability.
As I review Rocket Money Pros & Cons, I’ll shed light on its varied features and determine whether it’s the right financial companion for you.
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A Closer Review: Rocket Money Pros & Cons
I will start this exploration with a thorough review of the Rocket Money pros & cons. Lets have a look:
Pros:
- Manages and showcases all your recurring charges in one consolidated view.
- Features an easy-to-use budget tracker to better understand and control spending.
- Automates savings effectively.
- Provides multiple other complimentary services.
- Employs bank-level encryption for data security.
- Offers a 7-day trial for the Premium services.
Cons:
- Requires users to input sensitive financial information.
- Some of its features are locked behind a premium subscription starting at $3 per month.
- Charges 40% of the annual savings it negotiates from your bills, payable upfront.
Rocket Money History
Rocket Money, a key player in the financial management arena, is deeply rooted in the Rocket Companies fintech platform. It was originally founded by Yahya Mokhtarzada in 2015 as Truebill. Yahya Mokhtarzada previously held the title of VP Business Development at Nanigans.
In December 2021, Rocket Companies acquired Truebill. Just a few months later, in August 2022, it underwent a rebranding, adopting the name Rocket Money. The company boasts impressive credentials with its headquarters anchored in San Francisco, California.
Rocket Money’s mission is simple: offer users a clear and effective means to track, review, and refine their monthly budgets to better match their financial aspirations. The company’s impact is undeniable. By the outset of this year, they’ve aided over 2 million individuals, resulting in savings upwards of $100 million and terminating more than a million superfluous subscriptions.
Rocket Money Pricing
Rocket Money offers two primary membership plans: Lite and Premium. As someone who’s looked into the details of their offerings, let me break down what you get with each.
Starting with the Lite plan, it won’t cost you a dime. Yes, it’s free for life. If you’re aiming to simply monitor your spending and account balances, this might be the plan for you. Features include:
- Two budgeting categories, which might just be enough to keep your major expenses in check.
- Access to your credit score (though you can’t view your full credit report).
- The ability to link your banking accounts.
- Alerts for when your balance is running low.
- Daily syncing of your account.
On the other side, the Premium plan offers a broader range of features. Before diving into the costs, there’s a 7-day free trial to test the waters. Once that’s over, you’ve got a choice between monthly or yearly payments.
The monthly rate ranges from $3 to $12. If you opt for $3 or $5, it’s billed on an annual basis. The annual subscription, when paid upfront, is between $36 or $144. Rocket Money has this unique “Pay What’s Fair” approach, letting you decide your price. On average, users typically fork out about $6.99 each month.
Why go Premium? Here are some features to consider:
- Unlimited budget categories, as opposed to just two in the Lite version.
- Both a credit score and a detailed credit report.
- Automated tools to cancel unwanted subscriptions.
- A dedicated service for bill cancellations.
- Net worth tracking capabilities.
- Real-time syncing of your accounts.
- The ability to share accounts.
- And even an option to export your data.
I’ve found that if you’re looking for a comprehensive grasp on your finances, especially with the perks of unlimited budget categories or shared accounts, Premium might be worth the investment.
One more thing to keep in mind: Rocket Money’s bill negotiation service charges between 30% to 60% of the savings they clinch for you. How much you pay is up to you. Of course, if you’ve got the patience and the nerve, you can handle subscription cancellations and bill negotiations yourself. But if you’d rather save time and hassle, it might be worth the fee.
How Rocket Money Works
Navigating your finances can be a challenge, but Rocket Money aims to simplify that process. Let me walk you through how the app functions.
Firstly, it’s all about centralizing your financial activities. Rocket Money pulls together all your subscriptions onto a single interface. No more scouring through various bank statements; you can now spot those sneaky subscriptions you forgot about and, with the Premium plan, even get them canceled directly through the app. Trust me, it’s a relief not having to juggle multiple platforms.
A highlight for me has been the spending tracker. It not only shows you your monthly earnings and expenditures side by side, but it also breaks down your top spending areas, offering insights that can help pivot your spending habits. To top it off, Rocket Money sends you real-time alerts on imminent charges and when your balance dips – a great safeguard against those unpleasant overdraft fees.
Now, the bill negotiation feature is quite impressive. It scours your bills, looking for potential savings – be it on your phone or cable charges. And if you dread those long calls with customer reps, Rocket Money steps in, handling those negotiations for you. They only charge if they secure you a saving, taking a 40% cut, a small price for convenience.
On the savings front, Rocket Money introduces “smart savings” accounts, backed by the FDIC. What’s cool is how they automatically channel money from your main bank account into these savings, making it a seamless way to steadily build up reserves. Plus, you’ve got full autonomy here – whether it’s adjusting, pausing, or even withdrawing funds.
Credit scores can be confusing, but Rocket Money sheds light on it. Not only can you view your entire credit history, but any fluctuations affecting your score are flagged. It’s a neat way to keep tabs and grasp the intricacies of credit ratings.
Budgeting? They’ve got you. Rocket Money evaluates your transactions and pinpoints your monthly spending limit. They’ve even categorized expenses like “dining & drinks” or “entertainment”, making it easy to set and monitor budgets. Bear in mind, you can only have two of these categories unless you’re on the Premium plan. But the real gem? Real-time alerts that ensure you stay within your budget limits.
Getting started is pretty straightforward. Just download the app, create an account, and link your bank and credit card accounts. A bit apprehensive about sharing such sensitive info? I felt the same, but knowing they’ve partnered with Plaid and use bank-level 256-bit encryption put my concerns to rest.
Once you’re all set, the plethora of Rocket Money services are at your fingertips, right on your smartphone.
Final Thoughts
Navigating your personal finance can often feel overwhelming, but tools like Rocket Money can make the journey considerably less daunting. For those still on the fence, I’d highly recommend you review Rocket Money pros & cons meticulously to gauge its fit for your unique circumstances.
It also must be noted that Rocket Money isn’t the only show in town. The fintech landscape is bustling with innovation, and choices abound. Monarch Money is a major player in the budgeting app space. A comparative analysis like ‘Monarch Money vs Rocket Money‘ could offer valuable insights into which tool aligns best with your requirements.
As always, your financial well-being is paramount, and equipping yourself with the right tools is a significant step in that direction.
In conclusion, take charge of your finances. Embrace the path to fiscal clarity and control!
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