Are you tired of living paycheck to paycheck, unsure of where your money is going, and struggling to make ends meet? You’re not alone. According to a recent survey, 64% of Americans live paycheck to paycheck, and 63% of millennials struggle with financial stress. The good news is that there are many budgeting apps available that can help you take control of your finances and achieve your financial goals.
In this article, we’ll review and compare some of the best budgeting apps on the market, highlighting their key features, benefits, and drawbacks. We’ll also provide tips on how to choose the best budgeting app for your needs and answer some frequently asked questions.
What is Budgeting?
Budgeting is the process of tracking your income and expenses to understand where your money is going and make informed decisions about how to allocate your resources. A good budgeting app should help you:
- Track your income and expenses
- Set financial goals and priorities
- Create a budget plan
- Monitor your progress and make adjustments as needed
Top Budgeting Apps: A Comparison
We’ve reviewed and compared six of the best budgeting apps on the market, each with its own unique features and benefits.
1. YNAB (You Need a Budget)
YNAB is a zero-based budgeting app that helps you plan ahead for your financial decisions. It’s designed to be hands-on, requiring you to actively decide how to allocate your income. YNAB connects to your bank accounts, credit cards, and loans, allowing you to track your spending and create a budget plan.
Pros:
- Hands-on approach to budgeting
- Connects to multiple bank accounts and credit cards
- Customizable budget plan
- Educational resources available
Cons:
- Can be pricey ($14.99/month or $109/year)
- Requires commitment to use regularly
2. Goodbudget
Goodbudget is an envelope budgeting app that helps you plan for your finances by allocating your income into specific categories (envelopes). You can connect your bank accounts and manually add expenses, but Goodbudget doesn’t sync with your accounts.
Pros:
- Envelope budgeting system
- Connects to bank accounts
- Customizable budget plan
- Educational resources available
Cons:
- Doesn’t sync with bank accounts
- Limited free version
3. EveryDollar
EveryDollar is a simple zero-based budgeting app that helps you track your income and expenses. The free version allows you to manually enter expenses, while the premium version connects to your bank accounts and provides custom reports and recommendations.
Pros:
- Simple zero-based budgeting system
- Connects to bank accounts (premium version)
- Customizable budget plan
- Educational resources available
Cons:
- Limited free version
- Premium version can be pricey ($79.99/year or $17.99/month)
4. Empower Personal Wealth
Empower Personal Wealth is an investment tool that also offers budgeting features. It connects to your bank accounts, credit cards, and loans, providing a spending snapshot and net worth tracker.
Pros:
- Connects to multiple bank accounts and credit cards
- Customizable budget plan
- Net worth tracker
- Educational resources available
Cons:
- Limited budgeting features
- Primarily an investment tool
5. PocketGuard
PocketGuard is a simplified budgeting app that helps you track your income and expenses. It connects to your bank accounts, credit cards, and loans, providing a budgeting snapshot and net worth tracker.
Pros:
- Simplified budgeting system
- Connects to multiple bank accounts and credit cards
- Customizable budget plan
- Educational resources available
Cons:
- Limited advanced features
- Premium version can be pricey ($12.99/month or $74.99/year)
6. Honeydue
Honeydue is a budgeting app designed for couples, allowing you to track your joint finances and set financial goals together.
Pros:
- Designed for couples
- Connects to multiple bank accounts and credit cards
- Customizable budget plan
- Educational resources available
Cons:
- Limited free version
- Premium version can be pricey ($9.99/month or $99.99/year)
Choosing the Best Budgeting App for Your Needs
With so many budgeting apps available, it can be overwhelming to choose the best one for your needs. Here are some tips to help you make an informed decision:
- Identify your budgeting goals: What do you want to achieve with your budgeting app? Do you want to track your income and expenses, set financial goals, or create a budget plan?
- Consider your budgeting style: Do you prefer a hands-on approach or a more automated system?
- Look for features and benefits: What features and benefits are most important to you? Do you need to connect to multiple bank accounts or credit cards?
- Check the pricing: What is the cost of the app, and is it worth it for you?
FAQs
- Q: What is the best budgeting app for beginners?
- A: YNAB and EveryDollar are great options for beginners, as they offer simple and easy-to-use budgeting systems.
- Q: Can I use a budgeting app with multiple bank accounts and credit cards?
- A: Yes, many budgeting apps, including YNAB, Goodbudget, and PocketGuard, allow you to connect to multiple bank accounts and credit cards.
- Q: Are budgeting apps free?
- A: Some budgeting apps, like PocketGuard and Honeydue, offer free versions, while others, like YNAB and Empower Personal Wealth, require a subscription or premium version.
- Q: Can I use a budgeting app with my partner or spouse?
- A: Yes, Honeydue is a budgeting app designed specifically for couples, allowing you to track your joint finances and set financial goals together.
Conclusion
Choosing the best budgeting app for your needs can be overwhelming, but by considering your budgeting goals, style, and requirements, you can make an informed decision. Remember to look for features and benefits, check the pricing, and read reviews from other users to ensure you choose the best budgeting app for your financial journey.