As a finance professor, people ask me a lot of questions. One of the most common questions is about ways to make budgeting easier or if “there is an app for that.” There are two difficult parts to the budgeting process. The first part is sitting down to actually make a budget. The second part is knowing where you are in your budget and sticking to it. For me, this is by far the more challenging task because it takes time to record your expenses. I’m always looking for an app to help make my life more efficient, so I have actually tried a lot of budgeting apps over the years. Today I’ve decided to share four of my current favorites.
Mint: Money Manager, Budget, and Personal Finance is a free app that provides a complete money management toolbox for users. You can connect all of your bank, credit card, and investment apps to your personal Mint account and let the app do the rest. Mint will keep track of your spending and income and even make suggestions for how you can improve your budget. If you want an app that will literally track and do everything for you, Mint is the way to go. Personally, I don’t want to use this app for security reasons. I don’t like the idea of tying all of my financial accounts into this one place. If you don’t mind, however, you won’t find anything better than this.
Daily Budget Original is a free app that provides you will a daily budget after you enter your monthly income and fixed expenses. Since it does not connect to your bank account, there is some work on your part. Each time you make a purchase, you’ll need to enter that into the app so that it can deduct that dollar amount from your daily allowance. However, the app is simple and easy to use.
Mvelopes is a nice, free app if you are fond of the envelope method of budgeting. You can set up the categories, or envelopes, of your monthly expenses as needed. These are fully customizable, so you can have just a few, broad categories or envelopes for individual expenses like cable, coffee, cell phone, gym membership, etc. Mvelopes will also connect to all of your financial accounts (like Mint) and automatically deduct your expenses. Again, this has the benefit of taking the work out of the equation for you, but be careful about keeping your accounts and identity secured.
WellSpent is another free app also based on the envelope method of budgeting. Unlike Mvelopes, however, WellSpent does not connect to any of your financial accounts. So, you’ll have to be diligent about entering all of your daily expenses. Once you get into a habit of entering expenses as you go or at a certain time of the day (take a minute to do it while eating lunch or at the end of each day), you’ll find this is an incredibly useful budgeting app. You have the flexibility to add as many envelope categories as you want and track your spending in each category in real-time.
Do you use an app for budgeting? If so, do you use one of these or something else? If you do not use a budgeting app, which of these sounds the best to you?