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How To Pick The Best Budgeting App For Your Needs

Budgeting is an essential part of our life. Six out of 10 users show that mobile users prefer finance apps over websites. Budgeting apps have improved money management. By putting banking in the palm of one’s hand 24/7, they allow access to critical financial capabilities for users of all ages anytime, anywhere. 

What is a budgeting app?

A budgeting app is a software application you can access through your phone, computer, iPad, or tablet. It serves as your digital financial planner that helps track spending and saving goals with just one click away. These programs connect to bank and credit accounts to automatically import and categorize transactions into easy-to-read charts and graphs. 

With a quick glance at the app, you gain instant insight into where your money goes each month. Budget apps simplify creating customized spending plans with built-in calculators that factor in income, bills, debt payments, and savings targets. Users can track progress toward goals and receive notifications when they exceed budget in any area.

Why should you use a budgeting app?

Back then, people manually tracked their spending across multiple accounts using paper registers or complex spreadsheets. This makes it extremely tedious to get an accurate overview and easy to lose receipts or let transactions slip through the cracks. Here are some reasons why you should use one: 

  • A budgeting app securely syncs up with your bank and credit card accounts to pull in all your latest transactions into the app automatically. 
  • Tracks where each dollar gets spent, such as on bills, food, and shopping, and sorts it all into easy graphs so you can quickly spot trends and patterns.
  • It makes suggestions on how to meet your financial goals in a way customized just for you and creates budgets with overspending alerts.

When facing many apps, choosing a budgeting BFF to simplify your finances may feel overwhelming. Consider these points when choosing one: 

  • Consider your budgeting needs:  Consider what aspects of budgeting you want help with (e.g., expense tracking, reports, planning, etc.) so you can choose an app with the right features. Get one that syncs with your bank accounts for automatic importing of transactions.
  • Look for ease of use: The app should have an intuitive and user-friendly interface so it is simple. It should not feel like a chore. Good apps categorize transactions automatically to save you time.
  • Cost: Budgeting apps range from free to paid subscriptions with advanced capabilities. Decide what expense tools are worth paying for based on your personal finance needs. Many free apps have robust features.
  • Evaluate security measures: Since these apps access sensitive financial information, they should have bank-level security, encryption, and protection against fraud and data breaches. This protects your money and information.
  • Read user reviews: Downloading the app and reading reviews from other users can give insight into the pros, cons, and helpful features based on real-world experience with that particular app. Let others guide your choice.

Popular budgeting apps

When searching for a budgeting app, the key is finding the one that best fits your budgeting style and financial goals. Each of these popular apps takes a slightly different approach while helping you achieve control of your money: 

  • YNAB (You Need a Budget) is best for hands-on zero-based budgeting. It allows users to link bank accounts and track every dollar. It has envelopes and goals features for planning out spending.
  • Goodbudget is excellent for old-school envelope-style budgeting. It digitally creates virtual envelopes to allocate money for spending purposes. 
  • EveryDollar is excellent for simple zero-based budgeting, focusing on planning and tracking expenses. It makes it easy to create a monthly spending plan and see exactly where your money goes each month. 
  • Empower Personal Wealth concentrates on tracking net worth and wealth over time. It shows account balances and helps analyze spending to give sound financial insights. 
  • PocketGuard provides a simplified, big-picture view of your current budget situation. It focuses extra on managing bills and subscriptions by providing alerts and payment features. 
  • Honeydue is best for couples who want to collaborate on budgeting together. Honeydue helps hold one another accountable. 

Summing up

By choosing the right budgeting app, you take control and manage your money more easily. Look for an app that would fit your budget.  Apps focusing on zero-based budgeting, envelope budgeting, or sharing expenses with a partner may work well. Ensure the app is easy to use with features like automatic syncing and customized tips. 

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