Best Budgeting Apps in 2024: Improve Your Financial Health

Best Budgeting Apps in 2024: Improve Your Financial Health

Budgets! Ugh! Even the mention of budgeting can trigger anxiety. When you are really busy with work, family, and other obligations, it sometimes feels impossible to find time to sit down and think about money management.

Budgeting apps on your phone or your computer can make it much easier to manage your personal finances. Automated expense tracking makes your monthly spending clear. Once you know where your money is going, you can decide on your priorities.

Read on to learn about the best budgeting apps available this year and how these apps will support your budgeting strategy [1].

Why Use a Budgeting App?

Most of us could use a little help with our budget planning. The lower your annual income, the harder it can be to think about saving or figure out strategies to build a better future. Even when you earn more, expenses such as unexpected health bills or big car repairs can derail your plans.

Given the cost of living today and the challenge presented by the tight housing market, you might be looking for some planning and tracking assistance with your budget [2].

Here are some ways that budgeting apps can help.

1. Convenience: Budgeting apps automatically import and categorize your purchases, bill payments, and deposits, saving you time and effort.
2. Real-time insights: Get up-to-date information on your spending and saving habits.
3. Goal tracking: Set and monitor your progress towards financial goals.
4. Accountability: Regular notifications and infographics (like pie charts and bar graphs) keep you accountable to your budget.
5. Financial education: Many apps offer tips and resources to improve your financial literacy [3].

Unexpected expenses derail a budget

Paid vs. Free Budgeting Apps

Before we go into detail on each of these apps, here’s a quick list showing which apps are free, and which require a subscription:

Free Apps:

• Credit Karma
• Personal Capital
• NerdWallet

Paid Apps (with some offering free versions):

• Simplifi by Quicken
• You Need A Budget (YNAB)
• PocketGuard
• Monarch Money
• Goodbudget
• EveryDollar
• Rocket Money
• Greenlight (for kids and families)

Top Budgeting Apps of the Year

Here are our top ten budgeting apps for 2024. After this in-depth breakdown, we’ll explore the difference between budgeting strategies and how security works to protect your private information [4].

1. Simplifi by Quicken

Best for: Overall budgeting and financial management

Simplifi is a relatively new player in the budgeting app space, but it has quickly become a favorite due to its user-friendly interface and comprehensive features.

Key Features:

• Customizable spending plan
• Bill tracking and reminders
• Investment tracking
• Goal setting and tracking
• Detailed reports and insights

Pros:

• Intuitive and clean user interface
• Flexible budgeting approach
• Excellent transaction management

Cons:

• Monthly subscription fee
• No free version available

2. You Need A Budget (YNAB)

Best for: Zero-based budgeting strategy

YNAB is built on the principle of giving every dollar a job, which aligns perfectly with the zero-based budgeting method.

Key Features:

• Real-time budget adjustments
• Goal tracking
• Debt payoff planning
• Extensive educational resources

Pros:

• Teaches valuable budgeting skills
• Supportive community and resources
• Syncs across multiple devices

Cons:

• Steeper learning curve
• Higher price point compared to some alternatives

Budgeting apps can help

3. PocketGuard

Best for: Simplicity and overspending prevention

If you’re looking for a straightforward app to help curb overspending, PocketGuard might be the perfect fit.

Key Features:

• “In My Pocket" feature shows how much you can spend
• Bill negotiation service
• Automatic savings goals

Pros:

• Simple, easy-to-understand interface
• Free version available
• Helps identify areas to cut expenses

Cons:

• Limited customization in free version
• Some features require premium subscription

4. Monarch Money

Best for: Collaborative budgeting and investing

Monarch Money stands out for its ability to handle both budgeting and investment tracking in one place.

Key Features:

• Joint budgeting for couples
• Investment portfolio tracking
• Net worth calculations
• Custom categories and tags

Pros:

• Excellent for couples or families
• Comprehensive financial overview
• Clean, modern interface

Cons:

• Higher price point
• No free version

5. Goodbudget

Best for: Envelope budgeting system users

Goodbudget digitizes the traditional envelope budgeting system, making it perfect for those who prefer this method.

Key Features:

• Digital envelope system
• Debt tracking
• Savings goals
• Syncing across household devices

Pros:

• Great for cash-based budgeters
• Helps show spending allocations with visuals
• Free version available

Cons:

• Manual transaction entry required
• Limited features in free version

Envelope system started decades ago

6. Personal Capital

Best for: Investment-focused budgeters

While Personal Capital offers budgeting tools, its real strength lies in investment tracking and analysis.

Key Features:

• Investment checkup tool
• Retirement planner
• Net worth tracking
• Cash flow analysis

Pros:

• Comprehensive investment tools
• Free to use for budgeting features
• Holistic view of finances

Cons:

• Basic budgeting features compared to dedicated apps
• Geared towards higher net worth individuals

7. EveryDollar

Best for: Dave Ramsey followers

Created by personal finance guru Dave Ramsey, EveryDollar is designed to help users follow his Baby Steps program.

Key Features:

• Zero-based budgeting approach
• Baby Steps integration
• Debt snowball tool
• Fund tracking for sinking funds

Pros:

• Simple, straightforward interface
• Aligns with Dave Ramsey’s teachings
• Free version available

Cons:

• Limited features in free version
• Manual transaction entry in free version

8. Credit Karma

Best for: Credit score monitoring and improvement

While not primarily a budgeting app, Credit Karma offers valuable insights into your credit health alongside basic budgeting features.

Key Features:

• Free credit score monitoring
• Credit report insights
• Personalized recommendations for financial products
• Basic expense tracking

Pros:

• Completely free to use
• Regular credit score updates
• Educational resources on credit improvement

Cons:

• Limited budgeting capabilities
• Frequent product recommendations (which fund the free service)

Free credit reports

9. Rocket Money (formerly Truebill)

Best for: Subscription management and bill negotiation

Rocket Money specializes in helping users identify and manage recurring expenses.

Key Features:

• Subscription tracking and cancellation assistance
• Bill negotiation services
• Automated savings
• Credit score monitoring

Pros:

• Helps eliminate unnecessary expenses
• Potential for significant savings through bill negotiations
• User-friendly interface

Cons:

• Some features require a premium subscription
• Bill negotiation service takes a percentage of savings

10. Greenlight

Best for: Teaching kids about money management

Greenlight is designed to help parents teach their children about financial responsibility.

Key Features:

• Parent-controlled debit card for kids
• Chore and allowance management
• Savings goals for kids
• Investment education for teens

Pros:

• Teaches valuable financial lessons
• Parental controls and oversight
• Encourages saving and smart spending habits

Cons:

• Monthly subscription fee
• Limited use beyond family finance education

Pay yourself first

Free Alternatives: Spreadsheet Templates

For those who prefer a hands-on approach or want to avoid app fees, spreadsheet templates can be an excellent free alternative [5].

• Google Sheets offers several free budget templates
• Microsoft Excel has built-in budget templates
• Websites like Vertex42 provide downloadable, customizable budget spreadsheets

While these require more manual input, they offer complete customization and don’t require sharing financial data with third-party apps.

Understanding Budgeting Strategies

To make the most of these apps, it’s important to understand the budgeting strategies behind them. Here are some popular approaches to personal budgeting:

Zero-Based Budgeting

This method involves assigning every dollar of income to a specific category, including savings and debt repayment. The goal is to have your income minus your expenses equal zero. (Strategy used by YNAB and EveryDollar)

50/30/20 Rule

This strategy suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. (Strategy used by apps like Simplifi and PocketGuard)

Envelope System

The envelope system started in pre-digital days with cash and physical envelopes [6]. Budgeting apps use the same strategy by allocating specific amounts to different spending categories at the beginning of each month. (Strategy used by Goodbudget)

Pay Yourself First

This approach prioritizes saving by setting aside a portion of your income for savings goals before budgeting for expenses. You can use this approach in almost any digital budgeting app.

How to Choose the Right Budgeting App

When selecting a budgeting app, consider the following factors:

1. Your budgeting style: Choose an app that supports your preferred budgeting method.
2. Features: Prioritize the tools and features that matter most to you.
3. User interface: Look for an app with an interface you find easy and enjoyable to use.
4. Device compatibility: Ensure the app works on all your devices.
5. Cost: Consider whether the app’s features justify its price compared to the free options.
6. Security: Look for apps with robust security measures to protect your financial data.

Security Measures in Budgeting Apps

Online security is crucial for dealing with sensitive financial information. Most reputable budgeting apps use several layers of security protection [7]:

• Encryption: Data is typically encrypted both in transit and at rest, often using bank-level 256-bit encryption.
• Two-Factor Authentication: Many apps offer this additional layer of security to prevent unauthorized access.
• Read-Only Access: Most apps connect to your financial institutions in read-only mode, meaning they can’t make changes to your accounts.
• Regular Security Audits: Reputable companies conduct regular security assessments to identify and address potential vulnerabilities.

Always review an app’s security policies before signing up and sharing your financial information.

Sync with your bank

Integration with Financial Institutions

The ease of connecting your bank accounts and credit cards can greatly impact your experience with a budgeting app. Most apps use secure APIs or third-party services like Plaid to connect to thousands of financial institutions [8]. This allows for automatic imports of transactions and account balances.

However, the quality of these connections can vary. Some things to consider:

• How many financial institutions does the app support?
• How often does the app sync with your accounts?
• Are there any known issues with specific banks or credit card companies?
• Does the app support manual imports if automatic syncing fails?

Reading user reviews can give you insight on how well an app integrates with various financial institutions.

Making the Most of Your Budgeting App

Once you’ve chosen an app, here are some tips to maximize its effectiveness:

1. Connect all your accounts: For a complete financial picture, link all relevant bank accounts, credit cards, and investment accounts.
2. Customize categories: Tailor spending categories to match your specific needs and habits.
3. Set realistic goals: Start with achievable short-term goals to build momentum.
4. Review regularly: Set aside time each week to review your budget and adjust as needed.
5. Use reports and insights: Take advantage of the app’s analysis tools to gain deeper insights into your finances.
6. Leverage educational resources: Many apps offer tutorials and articles – use these to improve your financial knowledge.

What’s Next for Budgeting Apps?

As technology continues to evolve, we can expect budgeting apps to become even more sophisticated. Some trends to watch for include:

• AI-powered insights: More personalized recommendations based on your spending patterns and financial goals.
• Open banking integration: Easier and more secure connections to financial institutions.
• Gamification: Apps may incorporate more game-like elements to make budgeting more engaging.
• Cryptocurrency tracking: As digital currencies become more mainstream, expect to see more budgeting apps incorporating crypto tracking features.

How Much Bandwidth Do I Need for a Budgeting App?

Budgeting apps don’t usually take a lot of your bandwidth or storage space.

They will usually take up less than 100K of storage space on a phone, and browsing their sites on the internet doesn’t take up too much bandwidth. Of course, if you are watching an educational video on the site, streaming video is a heavier data task, but still not usually a problem with most standard definition online videos.

If you are working with a very low internet speed or a data allowance, you might want to check out your other options for internet providers in your area, including plan details and prices.

Sources

[1] UPenn.edu. “Popular Budgeting Strategies."

[2] Consumer.gov. “Making a Budget."

[3] NerdWallet.com. “Best Budgeting Apps."

[4] Forbes.com. “Bst Budgeting Apps."

[5] Vox.com. “Best Budgeting App for Mint Replacement: YNAB."

[6] Investopedia.com. “Envelope Budgeting System."

[7] USNews.com. “How safe are budget tracking apps?"

[8] PCMag.com. “The Best Personal Finance and Budgeting Apps."