Rocket Money Review: 6 Things To Know Before You Sign Up – Technologist

It’s estimated that the average American spends nearly $1,000 per year on subscriptions. That — according to the Wall Street Journal — adds up, with Americans spending “billions of dollars on stuff they have forgotten about.”

But here at Team Clark, we’re all about finding ways to save money. And Rocket Money says it can help you do that by managing your subscriptions and offering other services to help you spend less and save more.

In this article, we’ll look at Rocket Money to see if it’s worth having yet another subscription service to help manage the rest. Keep reading for answers to frequently asked questions, including:

• What Is Rocket Money?
• How Does Rocket Money Work?
• Is Rocket Money Safe?
• How Can I Cancel Rocket Money?
• Alternatives To Rocket Money
• Is Rocket Money Worth It?

What Is Rocket Money?

Rocket Money is a budgeting app that offers different services intended to help you save money. The company says its mission is to, “empower people to live their best financial lives” by providing members with, “a unique understanding of their finances.”

While Rocket Money is widely known for helping people manage their subscriptions — think Netflix, Spotify, Audible, etc. — the app has seven key features. The company offers the following:

• Autopilot savings
• Bill negotiation
• Budgeting
• Credit scores
• Net worth
• Spending insights
• Subscription management

The app is free to download for iPhone (iOS) users and Android users. But you can’t do much of anything until you link a bank account and sign up for a subscription. The cost is between $4 and $12 monthly, depending on how much you choose to pay! That’s right: Rocket Money lets you choose what you want to pay within the $4-12/month range.

They say, “Pay what you think is fair…We trust that if we bring you value, you’ll support us fairly.” Just be prepared to pay in a lump sum. You’ll be charged annually, so expect to pay at least $48 after a 7-day free trial period.

Rocket Money claims that 80% of users save money through its subscription-canceling service. So, should you sign up? Keep reading to see how their services work and whether signing up is worth it for you.

How Does Rocket Money Work?

Rocket Money offers users seven key services. To get started with Rocket Money, you’ll need to do a few things first.

The process begins with choosing goals. You can select options like cancel subscriptions, track spending, create a budget, grow your savings, lower your bills, and more.

Then, you must enter your bank account info to continue. Rocket Money says they use this to, “detect your subscriptions and help you save money.” You can read about ways Rocket Money keeps your info safe below, but if you’re not comfortable sharing bank info, then unfortunately the app won’t work for you.

Currently, Rocket Money uses Plaid — a third-party fintech company — to connect your bank accounts. Once your bank is linked, you can instantly see your finances and spending info in vivid detail.

The app scans the transactions in your bank account to do things like pick up on subscriptions you currently have and categorize your spending to show you where your money goes. There are several tabs to navigate in Rocket Money, and each one gives you a picture of some aspect of your finances.

In addition to seeing an overall picture, there are actions you can have Rocket Money take on your behalf with the goal of improving your finances. Here are some of your options:

Autopilot Savings

This feature allows the Rocket Money app to automatically transfer money from your checking account to your savings account. Using your monetary habits as a guide, the company says they’ll, “determine the optimal time to save, so you reach your goals faster and avoid overdraft fees.”

Bill Negotiation

Rocket Money says they have negotiators who can get you deals on your bills. This includes cell phone bills, cable bills and more, and is done by searching for discounts or opportunities for you to swap to different plans with better rates.

But bill negotiation comes with a catch. The company charges you a percentage of your total savings during the first year. As with their monthly fees, you get to choose a percentage to pay them within a range. “If the negotiation is successful, we’ll charge a fee of 35% – 60% of your first year’s savings. You choose the percentage within this range!” says the company.

You can also let Rocket Money shop around for lower auto insurance rates. The app uses Savvy to get quotes and show you rates.

Budgeting

Using colorful graphs and trackers, you can easily monitor your money from month to month with Rocket Money. The app helps you calculate how much you have to spend per month based on your financial obligations.

Then, you can see how you’re doing with your budget throughout the month. This feature allows you to view your spending in categories, easily see a list of all your transactions — including where and when you spent money, how much, and where that transaction ranks (from high to low) on your spending.

You can also opt-in for alerts so that you’re notified when you’re approaching a limit that you selected as a spending goal.

Credit Scores

There are lots of ways to get your credit score for free, but a subscription to Rocket Money includes access. Rocket Money is a very visual app, so your credit score page includes a graph that shows how your credit has changed from month to month.

Net Worth

The net worth feature of Rocket Money is designed to help you keep up with all your finances. According to their site, “By tracking everything you own and owe in one place, your net worth helps you measure and monitor your financial health over time.”

You can keep track of all your assets (from a 401K to a sneaker collection, they say) and debts to see the big picture of your financial well-being.

Spending Insights

Your spending insights are similar to budgeting in terms of what information is available. But this section is organized differently. A graph makes it easy for you to visualize the difference between how much you earn and spend.

You can also see what percentage of your income goes where and get alerts to stay on top of low balances or upcoming withdrawals.

Subscription Management

Most people know that Rocket Money helps manage subscriptions. So, this feature is a big selling point that you might have heard of already. The app makes it clear to see how many subscriptions you have, including with what company and for how much.

Not only can you see monthly charges, but the app shows you how much these subscriptions cost you each year.

If you see things you forgot about or no longer use, let Rocket Money cancel them for you. “We’ve cancelled nearly 2.5 million subscriptions on behalf of our members,” the company says. “Let us save you time and hassle by canceling services so you don’t have to.”

Is Rocket Money Safe?

It’s understandable if the idea of sharing your bank information online makes you nervous. You should always be on alert when you’re asked to share access to your financial records. And always be cautious about who you give access to.

Rocket Money takes several steps to protect the information of their customers. Here are a few:

• Bank-level 256-bit encryption used for data
• Partnered with Plaid to connect bank information
• Servers hosted on Amazon Web Services (AWS)

Plaid calls itself, “the most trusted digital finance platform” helping companies and customers share financial information. Some companies that use Plaid include Venmo, Chime, American Express, Wells Fargo, Bank of America, and more.

AWS is trusted by major organizations across the nation. In addition to being Rocket Money’s host of choice, AWS is used by the U.S. Department of Defense, the Financial Industry Regulatory Authority (FINRA), NASA, Netflix, and Lyft, among others.

Additionally, Rocket Money has a line of communication where techie folks are encouraged to write-in if they feel they’ve uncovered a security issue.

But, is it safe? Well, you can read what Rocket Money has to say about their security here. Ultimately, you’ll have to make a decision that feels right for you. But it seems as if Rocket Money is taking the best steps possible to meet the current security standards across the industry.

How Can I Cancel Rocket Money?

When you sign up for Rocket Money, you get a 7-day free trial period. Then, you will be charged at whatever rate you selected, between $4-$12 monthly. Remember: Rocket Money charges you annually though. So, expect to pay between $48-$144. And the bank account you submit when you enroll is what gets billed.

But it’s easy to cancel a subscription if you decide the app isn’t for you. From the app, simply click the cogwheel at the top left. Then, select “Premium Membership.” Finally, you will see the option to cancel your subscription.

Alternatives To Rocket Money

There are many financial apps available that say they’ll help you manage your finances. It can get confusing keeping up with who offers what or choosing which will best meet your needs.

There are a few key differences among the most popular ones. Let’s take a look at a few of them now:

	Rocket Money	Trim by OneMain	Billshark	ScribeUp	Hiatus
App Subscription Cost	$4-$12/month, billed annually	Free	None; $9 per canceled subscription	Free	$10/month
Bill Negotiation Fee	35%-60% of first year’s savings	Free, but exclusive to OneMain customers only	One-time fee of 40% of savings	Not available	Included with Premium membership (no extra fees taken)
Selling Point / Unique Feature	Monitor assets in Net Worth center	Student Loan Repayment Resource Center and Healthcare Cost Information Center	No subscription fee; pay only for canceled subscriptions or successful negotiations	Risk-free trials (Sign-up for free trials to services directly through ScribeUp, get reminders before trials end, no-charge if you forget to cancel on time)	Track spending and see how your spending/rates compare to those of other people
Customer Support	Email Chat	Email Chat Text	Email	Email App Chatbot	Email Chat Phone
App Availability	Mobile app Desktop browser	Desktop browser	Mobile app Desktop browser	Mobile app Desktop browser	Mobile app Desktop browser

In addition to some of the differences above, each app has a different design. So — if you’re interested and undecided — it might be worth looking at each of them to see which one naturally feels most comfortable for you.

Is Rocket Money Worth It?

If you have a system to keep up with your money from month to month, you likely won’t find much benefit from Rocket Money.

But, if you’re too busy to track your spending and want something easy to navigate, then Rocket Money is worth looking into. The app is very thorough in the areas of your finances that are highlighted. But it’s also easy to use features that you want and ignore the rest.

For those of you who are somewhere in the middle, here are some pros and cons to consider:

You can also check out Rocket Money reviews on TrustPilot to read what users have to say about their experiences. Then, if you’re still on the fence, give the 7-day free trial period a go. Just be sure to cancel your subscription before you get billed!

Final Thoughts

Rocket Money has a lot to offer if you’re looking for support with your financial well-being. And if you’re a visual person, the app interface makes it easy to see just how things are going in your finances.

You have to be comfortable sharing your financial information online though. And the services aren’t free. It is important to know that your bank might already offer many of the same services at no cost. So, before you pay for Rocket Money, see what’s available through your bank’s app.

The post Rocket Money Review: 6 Things To Know Before You Sign Up appeared first on Clark Howard.