Learning how to make money is just one half of the process of achieving financial stability and eventually building up wealth. The second half is money management, a concept that eludes many people. One company, however, is set to change this. Clarity Money is a new kind of financial concierge that is designed to offer comprehensive money management advice.
It is inspired by the fact that, as mentioned earlier, most people are poor in money management. Clarity Money is undoubtedly ambitious, and it takes on a very different strategy from its competitors to achieve its ambitious goals.
What is Clarity Money?
Clarity Money is an automated financial concierge that is designed to help its users manage their money better. It was founded in 2007 by Adam Dell, the brother of Dell’s founder Michael Dell. The company has its headquarters in New York City, NY, but it has a universal reach as the automated financial concierge comes in a mobile application. Clarity Money has proven its credibility and promising future among investors, and to date it has raised $2.5 million in funding.
Most of the investors asked to remain anonymous, but among those who chipped in include Maveron Ventures and Bessemer Venture Partners. Since the app is still in beta stage, the company plans to use the funding to further develop it and improve the software behind the concept, in addition to marketing.
Clarity Money is a comprehensive money management application that analyzes the users’ financial standing and expenditures and then offers money management recommendations. It is certainly not the first automated financial concierge, but it stands out for its comprehensive money analysis and money management capabilities, which are divided into six main functions:
Monitoring daily expenditure
Clarity Money app is designed to monitor and track users’ daily expenditure, and, like an Artificial Intelligence bot, learn from it and eventually make prudent recommendations. This app creates a daily budget and prioritizes your important needs depending on how much you have, how you intend to spend it, and how much you need to save. The app also generates daily reports of your expenditure and reveals whether you have saved or spent more than you should.
Making real-life expenditure recommendations
Good money management entails more than just minimizing expenditure; to a great extent, it also involves what you spend your money on. To this end, good money management is instrumental not only in boosting savings but also making the best out of your budget for comfortable living. Clarity Money puts this aspect of money management into action by providing recommendations on what to spend money on. It does this by distinguishing important needs from those that can wait and making recommendations for your budget. Its recommendations are also inspired in part by factors such as users’ credit scores and spending patterns.
For most people, online monthly subscriptions are like hidden charges in a contract; in fact, many people do not even realize they are subscribed to online services until the charges show up on their credit reports. And, although the cost of one subscription may be cheap, several subscriptions combine to constitute a considerable portion of your expenditure. In this case, Clarity Money comes in handy by identifying all of your subscriptions and managing them in one place. This way, you can determine the subscriptions that you want to keep and do away with the rest to save some money.
Getting better credit cards
Your credit score changes from time to time depending on, among other factors, how well you manage your finances. While it takes time to analyze your credit score through financial institutions, Clarity Money does it for you in seconds. The app is equipped with software that analyzes your credit score and browses through credit card offers to determine the ideal one for you. What’s more, you can apply for the credit card of your choice directly through the app.
Creating a savings account
Saving is also a major component of good money management, and Clarity Money partners with the best financial institutions to break all the barriers to saving. The app provides direct access to your own FDIC insured account, and it deposits money in the account on a periodical basis depending on your savings strategy. For instance, you may schedule a daily savings schedule of $5 and the app will transfer the amount from your account to your savings account at the end of each day.
Keeping you on track
Developing a smart budget is one thing, but sticking to it is an entirely different thing. To prevent users from spending above their budget targets, Clarity Money keeps track of daily and monthly expenditures and generates reports that highlight excesses to deter further unplanned spending. At the end of the day, however, spending depends on one’s self-discipline.
Clarity Money is ambitious in that it takes a huge leap by proposing to manage users’ entire finances, and this has raised security concerns among potential clients. The fact that the app is internet-based may prove to be a deterrent since it is vulnerable to hackers. However, founder and CEO Adam Dell has reassured clients through his interviews that the app utilizes only the best security software to protect its clients’ information.
Looking to the Future
Clarity Money has been in the making for almost ten years, but it has not come to the limelight until in the recent past. What’s more, it has made headlines by managing to raise $2.5 million is its first round of funding in spite of its simple look. And, even more surprising is the fact that the app is still in its beta stage.
Considering the confidence it has inspired in investors and customers so far, there is no doubt that it will grow exponentially in the coming years. The funding will undoubtedly come in handy for developing the app to maturity and marketing it to the masses. What’s more, the simple user experience that it provides its clients, coupled with the fact that it genuinely aids in money management, is expected to make it popular and attract more clients.