Online vs offline budgeting: Which is best for you?

Financial services have been revolutionised in recent years by the widespread availability and use of online and mobile banking. 

Data released in 2022 showed that some form of online service is now used by a vast majority of UK adults (93%). It is estimated that the rapid growth of mobile banking has been the root cause of this.

Some financial providers are now solely app-based, giving people instant access to current accounts, savers and more with a few taps of a screen.

When it comes to setting a weekly or monthly budget, these providers have all kinds of services to help. Although you may prefer a more old-school offline approach.

Here we’ll assess both and try to figure out which might be the best for your situation.

What is online budgeting?

Online budgeting involves using a financial app to keep on top of your outgoings and incomings.

With most banks now advising customers against having paper statements delivered to them, an online statement gives you a nice snapshot of your finances. 

User-friendly features such as colour-coded entries for deposits, direct debits and utility bills also make it easy for you to understand what’s going on in an instant.

What is offline budgeting?

Online banking isn’t for everyone. Concerns over cybercrime and unfamiliarity with these platforms among the less digitally confident can put people off.

Some may prefer to budget manually, storing cash in a physical savings pot in case of a rainy day or writing down all incomings and outgoings from a paper statement and setting a weekly limit on spending as a result.

It’s estimated that cash payments could become obsolete as soon as 2026 in the UK, with concerns raised over the potential for this move to alienate some sections of society.

What are the benefits of budgeting monthly?

• Set saving goals: Got your eye on a new car or hoping to move house in the near future? Keeping a close watch on your finances can help you meet savings goals and achieve them sooner.

• Don’t fall into debt: Knowing exactly what your spending limits are each month – and sticking to them – ensures your accounts stay in the black.

• Enjoy greater financial freedom: That new car or home could be in closer reach if you have a higher-than-average credit score. Paying off all bills and not falling into debt are the best ways to improve your report.

Which is best for me?

Some of the app-only providers are able to offer customers generous rates and offers due to their lower overheads compared to traditional banks. So if you’re tech-savvy and want to access these, online is likely the way to go.

However, offline budgeting is also great for all kinds of people. Those less comfortable banking on mobile devices may prefer traditional methods, but even those more confident in the digital realm may benefit from physical reminders when it comes to managing finances.

*This is a collaborative post.