The Apple Watch and What It Means for the Way You Budget

People whispering and talking into their watches sounds like a scene from an old spy movie, but with the new Apple Watch – the latest in Apple Inc’s flagship product line up – that scene will soon be reality.

Apple WatchIts the most personal device yet and will be available on April, 24 to customers in Australia, Canada, China, France, Germany, Hong Kong, Japan, the UK and the US. Apple Watch also presents an entirely new way to receive information at a glance and interact with the world through third-party app experiences – including personal budget and finances apps – designed specifically for the wrist.

How will this affect the way you handle your personal finances? Well, that is up to you.

Despite the obvious limitations of handling your budget and finances on a 42mm screen, the personal finance capabilities on the Apple Watch will likely be far more passive than the budgeting app functions you have become accustomed to on alternative devices like your phone and computer. Meaning, rather than having the freedom to track, report and predict spending habits and issues, you may be limited to simple notifications and alerts.

Here lies the potential problem.

By putting your budget and finances on autopilot and relying on digital notifications there is a propensity to become aware of issues only after the fact and this may condition users to be reactionary rather than proactive with their budget.

The truth is, there is no turn-key solution or silver bullet when it comes to handling personal finances. Personal finance and budgeting apps can be extremely useful, but only in complementing and supplementing proactive budgeting strategies that you have already developed.

The Apple Watch certainly has the capability to aid in your quest to become financially independent and sustainable, but it won’t reverse years of poor spending decisions and habits – that part is up to you.

For ideas on how to develop proactive habits and ways to spot savings in your everyday purchases, check out our Budgeting Bootcamp video series by signing up for Mvelopes Premier!