Wondering if Empower is the right tool to help you track your net worth, budget, and investments? This Empower Review will break down everything you need to know. Keeping track of your money can feel overwhelming, especially when you have multiple bank accounts, credit cards, and investments. That’s why I love using financial tools and…
Wondering if Empower is the right tool to help you track your net worth, budget, and investments? This Empower Review will break down everything you need to know.
Keeping track of your money can feel overwhelming, especially when you have multiple bank accounts, credit cards, and investments. That’s why I love using financial tools and money apps that help simplify the process.
One of the best free sites for managing your finances in one place is Empower (formerly called Personal Capital).
I first reviewed Personal Capital years ago, and since then, they’ve rebranded to Empower. They still have their popular free financial dashboard.
In this review, I’ll cover everything you need to know about Empower, such as how it works, who it’s best for, and whether or not it’s worth using. I’ll also share my personal experience and some tips to make the most of the free tools offered by Empower.
Please click here to use Empower for free.
My Empower Review
Below you will learn what I think about this popular financial planning tool.
What is Empower?
Empower is a free financial tracking tool used by over 18 million people that helps you manage your budget, monitor your investments, and track your net worth.
The platform gives you a complete financial snapshot by allowing you to link all of your bank accounts, credit cards, loans, and investment accounts in one place.
Empower is best for:
- People who want to track their net worth without spreadsheets.
- Budgeters who want to see where their money is going.
- Investors who want to analyze fees and portfolio performance.
- Anyone planning for retirement and looking for projections based on real data.
Empower also provides wealth management services, which is a paid financial advising service for users with over $100,000 in investable assets. However, you don’t have to sign up for that to take advantage of their free tools.
Recommended reading: How To Save For Retirement – Answers To 13 Of The Most Common Questions
How is Empower helpful for the average person?
You might be wondering, “Is Empower useful if I don’t have a ton of investments?”
The short answer is YES. Even if you’re just getting started with managing your finances, with Empower:
- You can track all your money in one place instead of checking multiple apps.
- The budgeting tool shows you exactly where your money goes each month.
- You’ll get a better understanding of your cash flow – how much you’re bringing in vs. how much you’re spending.
- You can find hidden investment fees that could be costing you thousands over time.
- The retirement planner helps you set goals and see if you’re on track.
Whether you’re trying to pay off debt, invest smarter, or plan for retirement, Empower makes it easier to stay on top of your finances.
How does Empower work?
To get started with Empower, here’s what you need to do:
- Sign up for a free account on the Empower website.
- Link your financial accounts, including checking, savings, credit cards, loans, and investments.
- Empower will automatically pull in your financial data and categorize transactions.
- You can view your net worth, track your spending, analyze your investments, and more from your personal dashboard.
One of my favorite things about Empower is that it automatically updates your accounts daily, so you don’t have to enter transactions manually like you would with a spreadsheet.
Main Tools You Can Use on Empower
Below are the main tools you can use on the Empower platform:
1. Free financial dashboard
The dashboard is where all of your financial information comes together. You can see:
- Your net worth (assets vs. liabilities)
- Your cash flow (income vs. spending)
- Your investment balances and performance
- Tips on how you can improve your finances
This is the best free net-worth tracker I’ve found – I love that I can see everything in one place.
Recommended reading: What Is Net Worth? How To Calculate Your Net Worth
2. Budgeting and cash flow tracking
The free Empower budgeting tool isn’t as detailed as some other budgeting tools, but it’s great for an overall look at your spending.
- Automatically categorizes transactions
- Tracks your monthly cash flow so you know if you’re overspending
- Shows how much you spend in different categories like groceries, restaurants, and shopping
3. Investment checkup
If you have investment accounts, the free Investment Checkup tool from Empower can help you analyze:
- How well your portfolio is performing
- Whether you’re properly diversified
- If you’re paying too much in fees
4. Retirement planner
One of the most interesting free tools from Empower is the Retirement Planner. It helps you:
- See if you’re on track for retirement based on your current savings rate.
- Test different scenarios (retiring early, increasing savings, etc.).
- Plan for major financial events like buying a house or having kids.
- There is even a recession simulator so that you can see how your retirement plan would have been impacted by a recession (such as in 2008).
I think this is a nice tool to have because you can easily see how different actions can impact you.
5. Retirement Fee Analyzer
Many people don’t realize how much they’re losing to investment fees. The free Empower Retirement Fee Analyzer:
- Shows how much you’re paying in fees on your 401(k), IRA, and other retirement accounts.
- Calculates how fees will impact your savings over time.
- Helps you find lower-cost alternatives if your fees are too high.
This is an easy way to save thousands of dollars over time without making huge changes.
6. Empower wealth management (paid service)
The wealth management service at Empower is for people with over $100,000 in investable assets. If you choose to sign up, you get:
- A dedicated financial advisor to help you create a plan
- Retirement planning help
And more.
There is a cost for this, and it depends on your balance.
I personally do not use this service because I manage everything on my own, and I like to save my money this way instead of paying a percentage (which adds up to a lot of money over a lifetime!).
If you just want the free financial dashboard as well as the other tools listed above, you do NOT need to sign up for this service.
Also, if you have over $100,000 listed in your Empower dashboard, then you will most likely receive phone calls from Empower asking if you’d like to sign up – still, you do not need to sign up if you don’t want/need this service. You can tell them no.
Some people may find value in this service – it just depends on what you are looking for.
Pros and Cons of Empower
Below are the pros and cons of Empower.
Pros:
- Free to use for tracking net worth and spending
- Great for investment and retirement planning
- Helps identify hidden fees in your investments
- Easy-to-use dashboard with helpful images to see how you’re doing
Cons:
- Financial advisors from Empower may reach out if you link more than $100K in assets (some people may find this annoying, but you can simply tell them you are not interested if you don’t want to sign up for this). I think I’ve received maybe 2 or 3 calls over the years, so not very many.
- Budgeting tool isn’t as detailed as other apps.
- Some people may not feel comfortable linking their accounts.
How To Get Started With Empower
Getting started with Empower is easy. You just:
- Sign up for a free account here.
- Link your financial accounts to get a complete money picture.
- Start tracking your net worth, spending, and investments today!
Frequently Asked Questions About Empower
Below are answers to common questions about Empower.
Is Empower safe to use?
Yes! Empower uses bank-level encryption and two-factor authentication to keep your data secure. They can’t move your money – they just track it. I have personally connected and added my own information to the Empower dashboard, so I do trust it.
Does Empower cost money?
The financial dashboard is 100% free. If you choose their wealth management service, there is a fee. I personally choose to not pay as I don’t use their wealth management service.
Is Empower a good app?
Yes, it’s one of the best free financial tracking tools available. Many users (including myself) love it for its net worth tracking and other features.
What are some common Empower complaints?
Some users don’t like that Empower advisors reach out to upsell wealth management services if you link over $100K. Also, people who want more out of a budgeting tool may think it’s too basic, such as when compared to tools like YNAB.
Did Empower used to be called Personal Capital? Why the change?
Yes! Empower acquired Personal Capital in 2020 and rebranded to be under one name.
Is Empower Worth It? My Final Thoughts
I hope you enjoyed my Empower Review.
If you’re looking for a free, easy way to track your finances, then you may want to try Empower. Even if you don’t have a large portfolio, the budgeting, net worth tracking, and retirement planning tools can be really helpful.
Personally, I love that I can see all my finances in one place without having to manually enter data. It’s a great tool for staying on top of your money and making smarter financial decisions.
Please click here to use Empower for free.
Have you used Empower? Do you prefer to use an Excel sheet to manage your finances or do you think a tool is better?
Note: To protect my privacy, the images in this Empower Review are not mine – they were all provided by Empower.
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