The World’s Best Budgeting Apps: Spend Less, Save More
If you're looking to save money, look no further than your smartphone! There are a number of great budgeting apps available that can help you stay on top of your spending.
What Are Budgeting Apps and How Do They Work?
Budgeting apps are applications that people can use to save money and manage their spending. There is a variety of these apps available, but they all typically work in similar ways.
Most budgeting apps allow users to link their bank accounts and credit cards to the app. This gives the app real-time access to your financial information. The app then analyzes your spending patterns and provides personalized recommendations on how you can save money. Many budgeting apps also offer features like goal setting and bill tracking.
Best Budgeting App for December 2024
Empower
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Empower is a hybrid online advisor that combines robo-advisor algorithms and human financial consultants to provide practical counseling and teach you how to grow your investments. It gives you a lot more than simple budgeting - these are real, all-encompassing financial tools aimed at high-net-worth investors and people who are looking to engage in tax optimization. Empower’s consulting services are pricey, but you can download the app for free, and you’ll get an excellent money-tracking tool with great budgeting features. The app is aimed at investors, so you’ll get an automated analysis of your investment fees, asset classes, and other details of your financial accounts. However, you can also use it to plan your retirement, set investment goals, and track your net worth. Empower allows users to link their accounts together and automatically track any purchases made from those accounts.
- •Completely free software
- •Retirement planning tools
- •Great security features
YNAB
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Unlike some other apps on our list, You Need A Budget isn’t free software, but it’s definitely worth the money. This is a budgeting package you can install on your phone or computer. Its purpose is to help you give every dollar a job. You can assign spending categories and track every purchase you make to ensure you’re always on top of your finances. YNAB is one of the best apps out there, especially if you have a lot of debt and have trouble finding ways to pay it off. There’s a 100% money-back guarantee, so there’s no risk involved, and even then, the company offers a 34-day free trial. There’s also a special program for students. College students can use the app completely free for a whole year.
- •Comprehensive knowledge base with videos and guides
- •Students can use it for free for a year
- •Syncs with multiple devices
Rocket Money
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Rocket Money is a budgeting app that helps you save money and make better financial decisions. Since its founding in 2014, Rocket Money has helped people save over $245 million and over $155 million in canceled subscriptions. Today, more than 3.4 million people use Rocket Money, which makes it one of the largest such apps in the world. The app connects to your bank account and automatically categorizes your transactions. You can then set financial goals and track your progress over time. Rocket Money also provides insights into your spending habits and offers tips on how to save money. Additionally, you can use the app to calculate your spending allowance and set up a savings plan. Rocket Money also helps you get a better understanding of your credit report and history and provides valuable insights in this respect. Furthermore, the app will alert you in case there are any changes to your credit score or any major financial events that could impact your finances. Also, it offers an identity theft protection feature to ensure all your funds are safe and sound.
- •Bank-level encryption
- •Real-time alerts about upcoming charges
- •Identity theft protection up to $1 million
Mint
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Mint is a well-known free budgeting app that’s been around for a while. It comes from Intuit, one of the largest makers of bookkeeping and accounting applications. Mint is a great app for beginners, and it offers both mobile and browser-based platforms, so you can access your account no matter where you are. It allows for automatic account synchronization and bill tracking, plus a full range of other features. You’ll be able to manage your money with ease, and all your financial information will be recorded so you can view it whenever you need to. All transactions are automatically categorized, and you get to see a chart of your overall cash flow.
- •Bill payment reminders
- •Customized alerts when over budget
- •Excellent mobile app
Goodbudget
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Setting up Goodbudget is pretty easy and straightforward. It has a simple, easy-to-use interface, but one of the biggest downsides is that your bank accounts aren’t automatically synced with the application. Still, it’s a great option for couples because it allows for easy information sharing and uses the familiar envelope budgeting system. You can synchronize your account with your partner’s and get your family’s finances in order with ease. It’s also useful for parents who want to teach their children how to budget. The free version of this app is great, albeit a little limited. You’re allowed to make only 10 envelopes, which might not be enough for everyone. Fortunately, the paid Plus version of the app has no such limitations. The Goodbudget website includes instructional videos on how to use the app, so you’re covered if you need help setting everything up. This app makes it easy to put your spending in perspective and adjust things based on your income and your debt - you can easily adjust the envelope allowances, and at the end of each month, you’ll see personalized reports to help you stay on track. Overall, it’s an excellent choice for families.
- •Affordable paid plan
- •10 regular envelopes with a free plan
- •Sync across multiple devices
Wally
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
This is one of the better apps for people who prefer a simple, no-frills program. Navigating the interface is a breeze, and there’s a very good range of budgeting features for you to use. Using Wally makes budgeting almost enjoyable because the app runs smoothly, and there’s no hassle involved when entering data. The program keeps detailed transaction records, and you get the option to immediately assign a percentage of your income to a savings account.
- •Intuitive and easy to use
- •Syncs all your bank details
- •Allows you to set budgets by categories
PocketGuard
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
PocketGuard is quite possibly one of the best choices for college students because, as the name implies, its main purpose is to prevent overspending. The interface is focused on how much cash you have to spend, and the app calculates how much money is available after you pay your monthly bills and set aside any savings. You can see how much cash is left “in your pocket” for the day, week, or month. It’s easy to set up the app and connect it to your bank account, and the app also memorizes recurring bills and frequent expenses, so entering data becomes faster and easier the more you use the app. Our favorite thing about PocketGuard is that it uses financial services that give you rebates on shopping, lower your bills, pay off loans, and even improve your credit score. You can learn how to control overspending and save up enough cash to put more into your savings and retirement accounts. All of this is done through a great-looking, easy-to-use interface.
- •The “Autosave” feature automatically saves you money
- •All user data is secured with 256-bit SSL encryption
- •Custom categories and hashtags for personalized reports
Simplifi
Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Simplifi by Quicken is one of the most popular apps on the market. It's a great choice for anyone who needs help managing their finances and staying on track. Simplifi offers a variety of features, including bank account and credit card linking, real-time spending updates, monthly bill tracking, and more. What's also great is the affordability of this budgeting solution. You can have it for as little as $5.99/month, and if you commit to an annual plan, the price is even lower at $3.99/month. Simplifi also offers a 30-day money-back guarantee, so you’re free to try it out for a month. And if you're not satisfied, you can cancel at any time by contacting customer support.
- •Customizable built-in alerts and notifications
- •Convenient 30-day money-back guarantee
- •Easy to import data from your other apps
Why Is Budgeting Important?
Spending less is easier said than done. When our wallets start getting thinner by the end of the month, we think back to all the minor expenses that added up - restaurant visits when we could’ve cooked at home, impulse purchases of things we didn’t really need, and more.
Then, we vow to do our best, get a budget app, and decide to be more mindful of our finances. However, as soon as the next paycheck arrives, it becomes very easy to fall right back into the same old traps.
The solution? Make a monthly budget and stick to it. That’s all you need to do. We’ve heard it a thousand times before, and we understand the basic concept. Spend less on Starbucks and focus on paying off your debt - makes perfect sense.
However, 22% of Americans still have less than $5,000 in their retirement savings accounts, and most of us treat budgeting like a chore that prevents us from enjoying life’s small luxuries.
Here are some things that these apps can greatly help with:
Figuring Out Your Goals and Sticking to Them
It’s not about huge goals. Telling yourself you’ll save thousands of dollars in a year might not be realistic for everyone, and it’s important not to overextend yourself. Stick to bite-sized goals that you can achieve every single day.
For example, saying that you’ll never again spend money on things you don’t need is a goal that manages to be both too lofty and too vague, making it very difficult to stick to. As such, focus on the little things.
Start by downloading a free version of an app. Go to Starbucks less often. Drop any subscriptions you don’t use. Take small steps and encourage good spending habits each day - in the long run, it’ll get you far.
Ensuring You Don’t Spend Money You Don’t Have
Credit cards are not extra cash. However, it often feels like they are. After all, it takes one swipe to get that new plasma TV that you couldn’t have afforded otherwise. A few more impulsive purchases like this, and you can easily rack up a lot of debt.
With a budgeting app, you can minimize the chances of this happening because they give you an easy overview of the current state of your finances. You’ll know exactly how much money you have at your disposal, how much you need to set aside, and how many luxuries you can afford each month.
Making It Easier To Deal With Emergencies
It’s easy to fall into the mindset that accidents only happen to other people, and we never anticipate that we might find ourselves in an unforeseen emergency until we do. You might get laid off, have a medical emergency that your insurance doesn’t cover, or you may need to replace an expensive piece of tech in your home.
Whatever happens, budgeting for unpredictable situations is always a good idea, and that’s one of the areas where a budgeting app can help. So, when something unpredictable does happen, you’ll be ready.
Preparing for Retirement
Even if you feel retirement is ways off yet, it’s never too early to start thinking about it. In fact, the earlier you start thinking about it, the better.
If you take a look at some of the best apps that we’ve listed, you’ll see that many of them have features that make it easy to set aside cash each month that will go toward your retirement fund.
Entering your sixties without a solid retirement fund will mean downgrading your lifestyle and having to rely on social security. Entering your sixties while knowing you’re fully financially solvent and have plenty of money set aside?
That means an easier life that you can enjoy fully once you don’t have to go to work anymore.
Getting Rid of Bad Spending Habits
The good apps will force you to take a close look at your finances. You’ll notice things that are easy to overlook - delivery charges, credit card fees, subscriptions to services you never use, and many other seemingly minor expenses that rack up over time.
Even though you might already be aware of these expenses, being able to see them “on paper” and see exactly how much they cost you each month can be the wake-up call you need.
Do I Really Need an App To Budget?
Technically, you don’t need an app for effective budgeting. It can be done with pen and paper, on an Excel spreadsheet, through a financial advisor, or through the good old envelope method. There are many ways to track your spending, and you should opt for the one that you feel suits you best.
So, why should you care about these apps? Simply because they are easy and convenient to use.
You don’t have to do any math, you don’t have to bother with spreadsheet formulas, you don’t have to draw tables, or go through the painstakingly slow process of writing everything down manually.
Just download an app, install it, and it’s ready to use in minutes. The program will guide you through the process, and all you have to do is type in some numbers.
If you still prefer to do everything on your own, you can. There are a few basic steps to creating a budget.
Decide how you want to track your budget: If you don’t want an app, you can take a look at other online budgeting tools or simply get a notebook where you keep track of everything. Our recommendation would be to make a spreadsheet so you don’t have to bother with a calculator.
There are also several free budgeting templates you can download if you’re not a savvy Excel user. It’s a good idea to make backup copies of these files, just in case your computer crashes and you lose all your data.
A financial advisor can help you save more. Hiring them can be pricey, but an expert can help you stay on top of your finances in the long run.
Calculate your monthly income: To do this, start by calculating your monthly net income. Take-home money is really the only thing that matters for this purpose; you don’t need gross numbers. And if you’re having trouble calculating it yourself, there are multiple free apps that offer calculators to help you out.
Calculate your monthly expenses: Figure out what you spend your money on. Start with recurring bills. This list will likely include the following:
- Mortgage and/or rent
- Utility bills
- Student loans
- Car payments and gas
- Insurance
- Subscriptions for streaming services, magazines, etc.
After you’ve got that figured out, write down variable expenses such as:
- Groceries
- Pet supplies
- Restaurant visits
Once you’ve written everything down, compare your income with your expenses. Are you spending a little too much on coffee runs? Do you really need a cable service if you already have Netflix?
Gather all financial statements in one place: That’s one of the reasons we’re recommending apps for budgeting. They track everything. Of course, this is something you can also do on your own. Gather bank statements, bills, receipts, and basically any kind of info about your income and expenses. Keep all the papers in one box and have them neatly organized.
Subtract expenses from income: This way, you’ll know how much you can spend right at the beginning of the month. If you know about your limits in advance, you’ll be less likely to overspend or indulge in impulse purchases. This also makes it easy to figure out how much money you can put in your savings account. Maybe you can put in a little more this month and invest in your future.
Try the 50/30/20 rule: Elizabeth Warren coined the 50/30/20 rule. It’s one of the best money-management tools for beginning budgeters and experts alike because it’s so simple: Spend 50% of your income on Needs (rent, groceries, utility bills), 30% on Wants (shopping, hobbies, restaurants), and 20% on Savings.
Review your budget once a month: It’s unlikely you’ll be able to make the perfect budget plan on your first try. It takes some practice. You’re likely to make a few mistakes and end up with costs you weren’t counting on. That’s why it’s a good idea to review your budget periodically, just to ensure it’s still working for you. Once a month would be ideal, but try doing it at least every three or four months.
Quick Money-Saving Tips
Budgeting can be complicated, and it takes both effort and willpower to remain consistent. So, we’ll also offer some general money-saving tips.
On their own, these won’t make much of a difference. However, they’ll encourage good habits, and if you adopt several of them, you’ll be well on your way to excellent financial health. That said, here’s how you can save more.
Cut up your credit cards. This may seem a bit dramatic, but if you’re trying to get your spending under control, it can be helpful to remove the temptation of plastic. If you must keep a credit card for emergencies, put it in a drawer and out of sight.
Put a spending limit on your cards. If you don’t have the discipline to only spend what you have in your account, setting a spending limit can be helpful. Whether it’s $50 or $500, knowing that you can’t spend more than a certain amount will help curb impulse spending.
Automate your savings. If you have trouble setting aside money each month, have a set amount automatically transferred from your checking to your savings account. And if you're unsure how to do it yourself, budgeting software can automate the process for you. This way, you’ll never even see the money, and you’ll be less tempted to spend it.
Automate your bills. Paying bills can be a pain, and it’s easy to forget about them. Automating your bill payments will help you stay on top of them, and you may even get a discount for doing so.
Unsubscribe from subscriptions you no longer need. If you’re not using that gym membership or that magazine subscription, get rid of it! The same goes for loyalty programs or memberships.
Make a list before you go grocery shopping, and stick to it! This will help you avoid buying impulsively and save you money in the long run. Knowing what you need before going to the store makes you less likely to make unplanned (and often unnecessary) purchases.
Eat out less often. Cooking at home is not only cheaper than going out to eat, but it’s often healthier as well. If you do go out, try to find restaurants with happy hour specials or early bird dinners. This can help you save money without sacrificing the occasional night out.
Track your spending. Knowing where your money goes is an important step in learning how to save. As you can see, there are several money-saving apps that can help you track your spending and see where you can cut back.
Final Thoughts
There you have it! These are just a few of the many great budgeting apps available. By using one or more of these apps, you can get your spending under control and start saving money. Furthermore, if you follow the tips in this blog post, you’ll be well on your way to excellent financial health.
Further Reading
Albert Einstein is said to have identified compound interest as mankind’s greatest invention. That story’s probably apocryphal, but it conveys a deep truth about the power of fiscal policy to change the world along with our daily lives. Civilization became possible only when Sumerians of the Bronze Age invented money. Today, economic issues influence every aspect of daily life. My job at Fortunly is an opportunity to analyze government policies and banking practices, sharing the results of my research in articles that can help you make better, smarter decisions for yourself and your family.
