The best 5 budgeting apps to get your finances on track

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We use our phones for everything — taking pictures, reading the news, buying toilet paper, you name it. Why not use it to track your finances as well?

Budgeting can be tedious, but having one is crucial for getting out of debt, saving money, and reaching your financial goals. A budgeting app makes the process easier by automatically tracking expenses and goals.

We reviewed five of the best budgeting apps for different financial situations — chances are, you can find one that fits your needs.

Best budget apps

• PocketGuard: Best for getting out of debt
• Goodbudget: Best for an old-school sense of budgeting
• YNAB: Best for super-dedicated budgeters
• Monarch: Best for couples
• Betterment: Best for investing

PocketGuard: Best for getting out of debt

Sometimes, budgeting begins by paying off the debt dragging you down.

PocketGuard offers automated bill tracking, predictions for upcoming bills, and spending insights to help you reduce debt. The “Safe to Spend” number tells you exactly how much is safe to spend before payday while avoiding overdrafts.

The app syncs with hundreds of financial institutions to automatically import and categorize transactions.

Cost: The basic version is free, but the premium version costs $7.99 per month or $34.99 per year. There’s also a $79.99 lifetime membership option.

Goodbudget: Best for an old-school sense of budgeting

Prefer a classic envelope budgeting system? Goodbudget allows you to create digital envelopes for each one of your budgeting categories, like rent, food, or entertainment.

You simply fund envelopes manually or set up auto-transfers based on your paydays. It’s a simple, effective method to help you pay off debt, track your spending, or save for big expenses. The easy learning curve works well for budgeting beginners.

Users can also sync and share household budgets, making it a good option for families or couples.

Cost: The free version limits the number of envelopes (budgeting categories) and devices you can set up. The Goodbudget premium plan comes with unlimited envelopes and the ability to sync across 5 devices, costing $8 per month or $70 annually.

YNAB: Best for super-dedicated budgeters

You Need a Budget (YNAB) has a cult-like following among its loyal users willing to put in the extra effort.

YNAB takes an interactive workshop approach to budgeting that can train you how to budget successfully. The app focuses on zero-based budgeting that allocates every dollar in your budget.

It helps break unhealthy money habits with resources like online classes, budget templates, goal tracking, and spending reports. The level of education and training makes it ideal for dedicated users who are serious about budgeting properly.

Cost: YNAB costs $14.99 per month or $99 per year.

Monarch: Best for couples

Talking about money with your significant other can be, well, not romantic. Monarch can reduce that awkwardness by syncing your accounts and letting each of you track progress toward goals.

Monarch also shows what bills must be paid and splits those equally or by custom percentages. The app offers custom savings goals to help couples budget for vacations, date nights, and more, according to their shared priorities. Other features include crypto tracking via Coinbase and property value tracking via Zillow.

Monthly reports are an extra opportunity to discuss where you did well and where you need some work.

Cost: Monarch costs $14.99 per month or $99.99 per year.

Betterment: Best for investing

Betterment isn’t technically a budgeting app, yet it complements budgeting beautifully. As an investing and retirement platform, it helps you invest your money wisely.

Betterment lets you automatically set aside a percentage of income into a managed investment portfolio. There's no minimum deposit to get started.

The app's easy interface also helps you visualize your retirement goals and understand how you're tracking them.

Budgeting apps simplify money management today, while apps like Betterment ensure your money grows in the future.

Cost: Betterment charges a $4 monthly fee or 0.25% annual fee based on account value.

Pros and cons of using a budgeting app

Budgeting apps have become popular in recent years as an easy way to track expenses and organize your money. But are budgeting apps truly useful tools or just hype?

Let's explore the pros and cons to decide if a budgeting app suits your financial situation.

How to make the most of your budgeting app

Downloading a budgeting app isn’t the answer to all your money problems — but it is a step in the right direction. What you do with that app can make a meaningful difference for your money.

“I look at personal budgeting similar to physical exercise and staying in shape,” says Elliot J. Pepper, certified financial planner at Northbrook Financial. “At the end of the day, it takes work to stay physically healthy through diet and exercise. However, being efficient with diet and exercise is just as important. The same holds for staying ‘financially fit.’ It takes work, but being efficient is critical to long-term success.”

Here are some tips to help you maximize the usefulness of a budgeting app:

1. Determine your top financial goals, like getting out of debt, saving up a down payment, or planning retirement. This can help you narrow your goals and focus on progressing towards the ones that mean the most to you.
2. Determine a percentage or dollar amount for spending categories like housing, transportation, or food based on your income and savings goals. Use an app’s set up to allocate toward those priorities.
3. Try to automate everything. Minimize tedious data entry by connecting as many accounts as possible. That way, all your direct deposits, transfers, and bill payments are tracked.

Alternatives to budgeting apps

If you don’t want to put another app on your phone, there are other ways to manage your money.

The most affordable (and manual) way is through a spreadsheet budget. You can enter all your expenses in a spreadsheet over the next few months to get a baseline of your spending habits so you can begin making adjustments.

You may also consider working with a financial advisor to create a customized spending and saving plan. You’ll pay for their services, but their expertise can get your money on the right path to long-term success.

Bottom line

Budgeting apps offer a user-friendly way to visualize your finances and build better money habits. But without discipline, they can become more disruptive than beneficial.

Ensure you’re clearly defining your goals, and start with simple tracking features so you don't get overwhelmed. Allow the app to guide you rather than dominate constantly.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.