Personal Finance

How to Keep Your Expenses in Check: Account Aggregators

Name: Information about account aggregation
Brand: Axos Bank

Jun 13, 2024

Do you know where your money goes every month?

We’re not sure how old you are, but back in our day, tracking expenses was much simpler. Pull out your checkbook, tally your expenses, and ta-da! A balanced budget.

Today, with Apple Pay, Venmo, Zelle, and myriad other ways to pay, it’s far more difficult to keep track of expenses. And if you’re not careful, you’ll find a worrisome amount of spending dedicated to frivolous items. (Caramel macchiato anyone? How about $600 worth?)

This, dear friend, is why you need account aggregators in your life.

What is Account Aggregation?

Account aggregation is a tool that allows you to see all of your financial accounts in one place. This includes bank accounts, loans, credit cards, investments – the works.

Instead of checking each account one-by-one, you can view everything at once. It simplifies your money management process so you can save time. The less time spent managing your money, the more likely you’ll stay accountable to your goals!

Which goals are we referring to, you ask? Financial goals vary from person to person, but the 50/30/20 rule is a great place to start. That is:

50% Needs - rent, gas, groceries
30% Wants - streaming services, surfing lessons, and that $6 coffee
20% Savings – savings (of course!) and paying off debt

If you haven’t built your own financial roadmap yet, the 50/30/20 ratio is a good rule-of-thumb to ensure you’re maintaining a good balance between spending money today and saving for tomorrow.

Why Account Aggregators are a Must-Have

Account aggregators give you a holistic view of your money. When you can see all your money in one place, you’re better able to understand your cash flow. This will help you make better decisions for your long-term financial wellness.

But, enough with the abstract! Let’s see an example of how this works:

Example: The Emancipation of Spendy Sam

Meet Spendy Sam.

Sam can never seem to find enough money to put toward savings. No matter how hard he tries, his bank account is always empty before the end of every pay period.

Looking at his bank account, it's no wonder Sam has a hard time saving money. Sam's bank, like most boring banks, offers only a laundry list of recent transactions. And it only provides information for one account. This means that Sam has no true insight into his holistic spending behavior.

Sam's Boring Bank Account

Sam realizes he needs help with his money habits. So, he opens a checking account with Axos Bank because their banking app has a built-in account aggregator. Sam can combine all of his financial accounts into one dashboard to easily view them all in one place.

He can add accounts from Chase, Wells Fargo, Bank of America, Fidelity, and more. This allows him to have a comprehensive overview of his financial situation. By consolidating his accounts, Sam can better manage and track his finances.

Now, instead of rummaging through recent transactions for each account, he can quickly get insights as to where his money is going. It looks like Sam is spending 40% of his monthly income on random purchases for his computer!

Sam’s New Account With Axos Bank

If you recall from the 50/30/20 rule, as savvy consumers, we only want to spend up to 30% of our monthly income on wants. And while Sam can argue that purchasing parts for his computer is a need, he knows that it can be more accurately categorized as a want. Therefore, 40% is far too high for his miscellaneous computer purchases.

Sam decides to limit his various costs to 30% so he can dedicate 20% to savings. He can do this, of course, because the Axos Bank mobile app allows him to track cash flow over time.

Sam’s Account Insights

And, just like that – Spendy Sam becomes Savvy Sam. By getting a holistic understanding of his flow of funds, Sam can make better decisions for his long-term financial health.

Great job, Sam!

How to Get Started

Account aggregators are easy to use. Just open your aggregator app, link your financial accounts, and use the data to make smarter money decisions! But, with an abundance of account aggregators on the market, which one should you choose?

Choosing an Account Aggregator

When looking for the perfect account aggregator, you want to look for four things:

Security
Consumer privacy
Accuracy
Large catalog of available account connections

Of course, every account aggregator on the market says its services are the best, so do your homework. Before you connect just any account aggregator to your financial accounts, take a look at their security and consumer privacy policies.

Axos Bank: Mobile Banking with Built-In Account Aggregation

Juggling multiple financial accounts can be a pain. That’s why we have an account aggregator in the Axos all-in-one mobile app! With the app, you can:

View all your external accounts in one place.
Categorize transactions into different buckets.
See a chart of how your account balances change over time.

So, say goodbye to the financial app toggle dance! Simply download the mobile app, link your financial accounts, and manage all of your money from one place.

It’s simple, fast, and secure. Browse our checking accounts here.