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Looking to improve your financial health and save money in 2023?
One of the best ways to do so is by using a budgeting app.
A good budgeting app can give you an accurate picture of your income and expenses, help you create a realistic budget, and keep you accountable to your financial goals.
With so many budgeting apps on the market, and so many expenses to keep track of these days, it can be hard to know which one to choose.
So In this article, we’ll take a look at:
What is budgeting
Why online budgeting apps are more effective than budgeting with pen and paper.
What does a budget show you?
How many categories should you have in your budget?
The basic components of a good budget
The top 10 best budgeting apps for saving money in 2023
How choose the right budgeting app
Why you should budget
So here, you can find the perfect insights to help you achieve your financial goals this year.
Quick Overview of the Best 10 Budgeting Apps for 2023
- Wally: a personal finance budgeting app that focuses on simplicity and ease of use.
- Honeydue: a free budgeting app that is specifically designed for couples and helps you track all of your accounts
- Clarity Money: a free budgeting app to help you manage your finances better
- You Need a Budget (YNAB): a beginner friendly budgeting app
- EveryDollar: an envelope budgeting system based app.
- Zeta: budgeting app that combines your finances and track your spending as a couple
- Mint: a free budget management tool that automatically tracks your spending.
- Trim: a reliable cost reduction budgeting app
- PocketGuard: a freemium user-friendly budgeting app
- Honeyfi: great app for couples who want to manage their finances together.
What is Budgeting
Budgeting is the process of creating a financial plan for a set period that outlines expected income and expenses.
It is a tool or Strategy which helps individuals and businesses to track their spending, save money, and prioritize financial goals.
A budget typically includes various categories which we’ll be discussing in details on this post.
Why online budgeting apps are more effective than budgeting with pen and paper.
I believe that online budgeting apps are more effective than budgeting with pen and paper for several reasons.
Here are my solid reasons:
Online budgeting apps provide a significant advantage over pen and paper budgeting due to their accessibility. With online apps, you can access your budget from anywhere with an internet connection, making it easier to stay on top of your finances on the go.
2. Real-time tracking:
Real-time tracking of expenses and transactions is another advantage of online budgeting apps. With automatic updates, you can easily monitor your spending, categorize expenses, and stay on top of your budget in real-time.
This makes it easier to spot areas where you may be overspending or where you can cut back.
The automatic categorization of expenses is another significant advantage of online budgeting apps.
Many online budgeting tools use machine learning algorithms to automatically categorize expenses based on transaction data, which saves time and ensures accuracy.
This helps to eliminate human error and ensure that expenses are categorized correctly.
4. Goal Adjustment
Online budgeting apps also make it easier to adjust your budget and track progress toward your goals.
With just a few clicks, you can make adjustments to your budget or savings goals, and the app will automatically update your progress.
This provides a more comprehensive view of your financial situation and helps you make more informed decisions about your money.
Finally, online budgeting apps are more collaborative. With the ability to share your budget with others, you can work together to create a joint budget, which can be helpful for couples or families.
This makes it easier to track shared expenses and ensure that everyone is on the same page when it comes to financial goals.
In summary, while pen and paper budgeting has its advantages, online budgeting apps provide a more comprehensive, accurate, and accessible way to manage your finances.
What does a budget show you?
A budget is a financial plan that shows you how much money you expect to earn or spend over a specific period, typically a month or a year.
A budget provides a clear and concise overview of your financial situation and helps you manage your money more effectively.
It shows you where your money is coming from, where it is going, and what you can do to improve your financial health.
A budget also provides a snapshot of your financial priorities. It helps you allocate money toward the things that matter most to you, such as paying off debt, saving for retirement, or investing in a home.
By analyzing your spending habits, you can identify areas where you may be overspending and adjust your budget accordingly.
How many categories should you have in your budget?
When it comes to creating a budget, the number of categories you should have depends on your personal financial situation and goals.
However, it’s generally recommended to have at least a few basic categories, such as housing, food, transportation, debt payments, and savings.
You can then add additional categories as needed based on your spending habits and financial priorities.
Some people may choose to have more specific categories, while others may prefer to have broader categories that encompass multiple expenses.
Ultimately, the key is to create a budget that is realistic and manageable for you, so that you can stay on track and reach your financial goals.
What are the Basic Components of a budget?
The basic components of a good budget system includes:
This includes all sources of income such as salary, wages, bonuses, commissions, rental income, etc.
It’s important to have an accurate estimation of your income to create a realistic budget.
This includes all the regular and irregular expenses such as rent/mortgage, utilities, groceries, transportation, medical expenses, entertainment, etc.
It’s important to track and categorize your expenses to have a clear picture of where your money is going.
This is the amount of money you set aside for future goals such as emergencies, retirement, or a big purchase.
It’s important to prioritize savings in your budget to ensure you are building a secure financial future.
This includes all the debts you have such as credit card debt, student loans, car loans, mortgage, etc.
It’s important to include debt payments in your budget to ensure you are making progress towards paying off your debts.
5. Financial Goals
This includes any specific financial goals you have such as saving for a down payment on a house, paying off a credit card, or starting a business.
It’s important to allocate funds towards your financial goals in your budget to ensure you are making progress towards achieving them.
By including these components in your budget, you can create a comprehensive plan for managing your finances and achieving your financial goals.
Top 10 Best Budgeting Apps for All round Purposes in 2023
Wally is a personal finance app that focuses on simplicity and ease of use. It’s great for budgeting because it allows you to track your income and expenses and compare them to see how well you’re sticking to your budget.
The app provides an easy-to-understand overview of how much money you have left in your budget and how much you can save.
Unlike some other budgeting apps, Wally is completely free to use.
They have intentionally designed the app to be user-friendly, with a manual input system that makes it easy for newcomers to get started with budgeting.
Although Wally is free, the team behind the app plans to introduce premium versions in the future, which may offer additional features and benefits.
Availability: Wally is available on iPhone, and the Android version is called Wally+.
Honeydue is another free app that is specifically designed for couples.
It enables you to track all of your accounts, including bank accounts, loans, and investments, with support for over 20,000 financial institutions in more than five countries.
One of the unique features of Honeydue is its messaging feature, which allows users to send messages to their partners to discuss transactions, clear up suspicious or fraudulent activities, and even send encouraging notes and emojis.
The app also helps couples merge their finances without any drama by facilitating difficult conversations.
It allows each partner to stay up to date on account balances, bill due dates, and even split bills within the app.
Honeydue also comes with privacy settings that allow users to choose how much information they want to share with their partner.
For instance, if you have separate accounts, you can decide to share account balances but not every specific transaction. This feature is particularly helpful if you’re planning a surprise gift or trip.
However, if you’re concerned about financial infidelity from your partner, you might want to consider using an app that provides more transparency for both parties’ spending.
Overall, Honeydue is an excellent app for couples who want to stay on top of their finances, share expenses, and manage their budget together.
Available on both iPhone and Android devices.
3. Clarity Money
If you are looking for an app that can help you save more money and manage your finances better, Look no further than Clarity Money!
This free app is packed with features designed to help you analyze your spending habits and make smart financial decisions.
With its automated expense tracking, you can easily keep track of your bills and expenses, so you always know where your money is going.
But that’s not all – Clarity Money also offers a comprehensive budgeting tool that allows you to track all aspects of your budget. This feature can help you identify areas where you can cut back and save money.
One of the standout features of Clarity Money is the section for couples, which allows you to automate your savings and cancel subscriptions you no longer need.
This can be a great way to simplify your financial life and reduce your expenses.
Available for free on Android, iOS, and the web.
Website: Clarity money
4. You Need a Budget (YNAB)
Whether you’re a beginner budgeter or an experienced financial planner, YNAB can help you take control of your finances and achieve your financial goals.
You Need a Budget, also known as YNAB, may be just what you need to take control of your finances and start making your money work for you.
One of the key features of YNAB is its zero-based budgeting system. This means that every dollar you earn is given a specific purpose, whether it’s paying bills, saving for a vacation, or building up an emergency fund.
This approach ensures that you have a clear plan for your money and that every dollar is accounted for at the end of the month.
But YNAB is more than just a budgeting app – it’s a comprehensive financial management tool. With YNAB, you can manage all of your accounts and debt in one place, and even share your financial information with a partner or spouse.
YNAB also requires you to manually enter all of your spending. While this may seem like a hassle at first, it actually forces you to pay closer attention to where your money is going.
If you’re looking for a budgeting app that can help you take control of your finances and get out of debt, EveryDollar may be just what you need.
Based on the envelope budgeting system, EveryDollar helps you allocate your income into different categories, making it easy to see where your money is going each month.
One of the standout features of EveryDollar is its Debt Snowball Tool, which is specifically designed to help users create a debt payoff plan.
This tool helps you prioritize your debts and create a plan to pay them off as quickly as possible, so you can get back on track financially.
Like some other budgeting apps on this list, EveryDollar syncs with your outside accounts and updates transactions in real time, so you always have an accurate picture of your finances.
With the free version, you can create a basic, customizable budget that can help you stay on track and reach your financial goals.
Zeta is a popular budget app that is designed for couples who want to manage their finances together.
This mobile and web-based app allows you to easily combine your finances and track your spending as a couple.
One of the best features of Zeta is its flexibility. You can choose to either link all of your accounts together, or set up separate accounts and choose what you share specifically with your partner via the app.
This makes it easy to manage your money together while still maintaining some level of financial independence.
Another great feature of Zeta is the bill alerts option, which helps you stay on top of your bills and avoid missing any payments. You can also split transactions with your partner, making it easy to manage shared expenses and pay each other back.
Whether you’re trying to save money, pay off debt, or just get a better handle on your finances, Zeta is a great app to consider.
Available for free on both iPhone and Android
With over 20 million customers, Mint has remained one of the top financial tools since it was launched in 2006.
Mint is a free budget management tool that automatically tracks users’ spending. The app’s clean and intuitive interface allows users to set spending targets for each category in their budget, while transactions are categorized in real-time.
What sets Mint apart from other budgeting apps is that it provides a centralized place for users to view their entire financial life in one spot.
Users can link almost any financial account to Mint, including banks, credit cards, loans, and investment accounts.
Looking for a personal financial assistant to help you manage your expenses and save money? Trim is a great choice. With Trim, you don’t have to do the work of finding ways to reduce your spending – the app does it for you!
If you think you’re overpaying for your phone or electric bill, Trim will contact the service provider and negotiate a better rate on your behalf.
In fact, Trim has saved its users an average of $600, making it an excellent tool for those who want to reduce their expenses without sacrificing their lifestyle.
Trim can also help you identify and cancel unused subscriptions, as well as negotiate lower prices for medical bills.
Best of all, many of these services are completely free when you sign up for Trim.
If Trim isn’t able to save you any money, you won’t be charged a penny. With Trim, you can have peace of mind knowing that you have a financial partner working tirelessly to help you save money and stay on top of your expenses.
Fee: No cost to use, but Trim takes 15% of annual savings from successful bill negotiations.
PocketGuard is a user-friendly budgeting app, specially designed for millennials who are new to managing their finances. The app offers an easy-to-use interface that allows users to sync all their financial accounts for better management.
One of the most impressive features of PocketGuard is the “In My Pocket” tool, which provides users with a quick overview of their available funds.
It factors in bills, ongoing expenses, and savings goals to provide a clear picture of how much money is available to spend. This tool can be incredibly useful when making decisions about purchasing items, like a pair of shoes that cost $65, for example.
Another great feature of PocketGuard is its ability to identify opportunities for users to save money. By analyzing the user’s spending habits, the app can suggest ways to cut back, such as by canceling subscriptions or negotiating bills.
PocketGuard also offers a referral program that allows users to earn points, which they can then trade in for a free month (or more) of its premium PocketGuard Plus service.
Price: if you prefer not to pay a monthly fee, PocketGuard Plus lifetime access is available for a one-time purchase of $79.99.
Honeyfi is a great app for couples who want to manage their finances together.
To get started, you simply tell the app which financial goals you want to save for, whether it’s saving for a home, vacation, wedding, or any other big expenses. You can then link your accounts and choose what you share with each other.
The app also gives you the ability to tag transactions to one of you and even add comments to them.
On the budgeting side, Honeyfi lets you track your spending and bills in one place. The app sends you alerts for upcoming bills, so you won’t ever miss a payment again.
Price: free to use for the first 30 days, then, it’s $5 per month Or $59.99 per year
Honeyfi is available on both iPhone and Android devices,
How choose the right budgeting app?
It’s important to choose a solid budgeting apps that best suits your need and stick to it.
By considering the below factors, you’ll be able to choose the right budgeting app that meets your financial needs and helps you achieve your budgeting goals.
1. Determine Your Budgeting Goals:
Before choosing a budgeting app, identify your goals and what you hope to accomplish through budgeting. Whether it’s tracking expenses, saving for a specific goal, or reducing debt, having clear objectives will help you find the right budgeting app that fits your needs.
2. Consider the App’s Features:
Each budgeting app has unique features that make it stand out from the rest. Look for an app that aligns with your budgeting goals and has features that match your budgeting style.
For instance, some budgeting apps focus on tracking expenses, while others offer tools for tracking investments, credit scores, or net worth.
3. Check User Reviews and Ratings:
Reading user reviews and ratings can provide insight into how well a budgeting app works and how user-friendly it is. Make sure to read both positive and negative reviews to get a balanced perspective.
Pay attention to the comments that address issues that are important to you, such as ease of use, customer service, or app bugs.
4. Consider the App’s Security and Privacy:
You’ll be providing sensitive financial information when you use a budgeting app, so it’s essential to ensure that the app is secure and protects your privacy.
Look for apps that use encryption technology and have strong privacy policies.
Additionally, it’s important to consider the app’s data-sharing practices, whether it shares your data with third-party vendors or uses your data for advertising purposes.
5. Evaluate the App’s Pricing:
Many budgeting apps offer a free version with limited features, while others have a monthly or yearly subscription fee.
Consider your budget and how much you’re willing to pay for a budgeting app. Evaluate the pricing structure and compare it to other apps to determine if it’s worth the investment.
6. Test the App:
Before committing to a budgeting app, test it out to see if it works for you.
Many budgeting apps offer a free trial or a limited version of the app. Take advantage of these opportunities to test out the app’s features, user interface, and functionality.
Why you should budget?
The main goal of budgeting is to ensure that you live within your means, avoid overspending, and have enough money to cover unexpected expenses or emergencies.
By creating and sticking to a budget, you can achieve financial stability, reduce debt, and work towards their long-term financial objectives.
I hope you have been well informed and equipped in this article on how to go about upgrading your Financial life through the right budgeting apps and knowledge.
See you on the next page.