Status Money Review: Free Site Shows You How You Compare FinanciallyBuilding Wealth
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Status Money is a free app that wants to help you improve your finances with the power of peer pressure. Does it work? Let’s check it out in this Status Money review.
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What Is Status Money?
Status Money is a financial app that tracks your income, spending patterns, debt, and net worth and compares them to both the national average and your peer group. But it also provides users with a number of wealth management tools to plan ahead for the future. The company was founded in 2016 but has quickly gained a cult following.
As the company explains, the name “Status” marries the concept of statistics with us.
If that sounds delightfully nerdy, it’s no coincidence. After all, the creators of Status Money are Majd Maksad and Korash Hernandez, two New York City-based data scientists.
On one level, I found using Status Money to be not unlike Personal Capital. Although Personal Capital really hones in on your investment portfolio (in particular, its asset allocation), Status gives a lighter overview of your assets.
However, both apps break down your spending patterns and compare what you’ve saved (or blown through) this month compared to the last.
Status Money is different, though, because it also incorporates not only a fun social media platform but also comparisons with other people like you.
The company analyzes the financial data of people all across the country to compare how you’re doing. And in a similar vein to Credit Karma, it will provide you with suggestions for better rates on credit cards and other accounts.
Status Money aims to give you answers to questions like these:
- How rich am I compared to my peers?
- Am I paying too much on rent?
- Am I spending too much money on gasoline?
- Could I qualify for a credit card with a better rate?
- Is my credit score better than the national average?
(Apparently, I’m not the only one who stays awake at night worrying about this kind of stuff.)
The founders of Status have built the first personal finance platform that lets you compare your financial picture with those of not only your peers but also national averages and more than 1 million groups you can custom-create.
You can sign up on Status’s web page. Or you can download the mobile app from the Apple App Store or Android Play Store.
When you sign up for a free account, you’ll be asked a series of questions about your financial picture. Status will ask you for typical sign-up information such as your name and address. But it will also ask you for the last four digits of your Social Security number and your annual income. You’ll also need to input information on your house (if you own one) and any vehicles you might have. Status will also link to your bank, credit card, and other financial accounts.
It took just a couple of minutes for me to complete the signup process. But then again, I don’t have a whole lot of financial accounts in different places. If you have a bunch of loans or savings accounts to enter individually, your signup process would take more time. It can also take a few minutes for Status Money to sync your accounts and generate your profile, so be patient.
Status Money Features
Once you’re on the dashboard page, you’ll be able to see how your entire financial picture — including your credit score — stacks up. Status Money will let you know what percentile you’re in when it comes to your net worth. I was pleasantly surprised to find I’m in the top 7 percent of my peers!
You can also use Status Money to track your spending, debts, and assets. Status will alert you if it thinks you can earn a higher interest rate in another bank account. It suggested I switch one of my savings accounts — an idea I’m now considering.
If you’re the sort of person who benefits from gentle reminders, you can set spending limits with Status Money. Simply tell the app your maximum budget for 16 different spending categories, and the app will alert you when you’re close to the limit.
Status Money also features a social networking platform that lets users share ideas and stories. While this is fun, it’s not anything you won’t find on any personal finance-oriented social network page.
More… well… rewarding is Status Rewards. This is a program that lets you earn dollar-based rewards by completing tasks throughout the app. Just for signing up, you’ll receive $7 in rewards.
You can find rewards opportunities by looking for a special rewards symbol. Tap or click on the icon and Status will tell you what you need to do to qualify for that reward.
What do you get for your rewards? Money!
That’s right; once you’ve got $10 in rewards, you can redeem them as cold, hard cash in a linked bank account.
How Does Status Make Its Money?
Status Money might sound a little too good to be true. After all, not only is it free, but it will pay you seven bucks just for signing up.
Like Credit Karma and many other free personal finance sites, Status Money makes its money from personalized advertising for its partners. The company receives revenue whenever you follow its linked suggestion for, say, a new credit card account.
As always, you should read the fine print and do your due diligence before signing up for any financial product. However, that’s not to say Status’s recommendations aren’t great.
Is Status Money Safe?
With so much sensitive personal and financial information entered into the app, it’s important that Status takes your privacy seriously. Luckily, the company appears to have many safety precautions in place, and the app is safe to use.
Status uses 256-bit encryption — one of the most secure forms of encryption — to protect the data you share with the app.
Keep in mind, Status Money keeps all statistical user information 100% anonymous.
In addition, Status won’t sell your information to another company. Its revenue is derived completely from targeted ads.
Does Status Money Work?
Status Money’s founders set the lofty goal of helping people improve their finances. Ultimately, it’s all about empowering individuals. The company can share informed knowledge about real and objective wealth trends and patterns.
Has it been a success?
An independent study from the Becker Friedman Institute for Economics at the University of Chicago found that participants who had been prone to overspending significantly reduced their spending after regularly using Status Money.
Status Money Review: Pros
- Free: It’s completely free to sign up for and use Status Money.
- Expense Tracking: Similar to Personal Capital, Status will track your spending habits and let you know not only how you compare to your peers but to your previous months.
- Peer Comparisons: Compare your financial health to that of your peers. Status uses completely anonymous data, so rest assured your own info is safe.
- Cash Rewards: Status Money will give you actual cash for completing certain tasks on the app. For signing up, you’ll get $7 in rewards right off the bat!
- Monitor Your Credit Score: Status Money will update your credit score and let you know how it stacks up against your peers. Don’t worry; your credit report won’t be affected.
Status Money Review: Cons
- Signing Up Can Take Time: If you have a lot of financial accounts, you may need to enter each one individually. That can take up some time.
- Not Super-easy to Navigate: Although Status Money is streamlined, it’s not the easiest app to figure out. You’ll need to spend some time with the platform to get the hang of it.
Who Is Status Money Best For?
Status Money is a great fit for anyone with a competitive streak or who would like to check out their entire financial picture. It can provide you with enough incentive to save more, owe less, and spend better.
If you are serious about reducing debt, creating wealth, and comparing your net worth by age or other variables, Status Money is a perfect fit.