Budgeting doesn’t come naturally for everyone. Some of us need a little assistance with tracking our income and spending. That’s where budgeting tools come in.
There are several front runners in this space. Many of them offer a wide range of features to help you manage your money better. Here are four of the best budgeting tools that we’ve found:
Personal Capital is a money management tool that tracks your investments and other financial accounts. What’s great about Personal Capital is that it’s an all-in-one tool. Not only can you track things like your net worth and portfolio balances, but you can also get down to the nitty-gritty details of your budget.
After you link your financial accounts by logging into them through the Personal Capital website, you’ll see different charts on the main dashboard. One of those is a cash flow chart. This chart shows you your income and spending for the last 30 days — a quick glance at your budget details.
Simply click the chart to be brought to another page. Here, it will show you the details of your budget. You’ll see where your income is coming from, and where you’re spending money.
Personal Capital is free to use, but it charges a fee for optional wealth management services for people with investment portfolios worth over $1 million.
Mint has long been considered the gold standard for budgeting tools. Between its website and mobile app, Mint gives users the ability to see their money activity in real time. Much like Personal Capital, Mint syncs all of your financial accounts into one dashboard. From there, you can see your spending categories, investment balances, and upcoming bills.
What’s unique about Mint is that it also offers a free credit score. You’ll see the number on your dashboard every time you log in, and your score is updated every three months. Although there are plenty of websites offering free credit scores these days, Mint makes it easy to keep all your financial data in one place and avoid having to log in to multiple websites.
Mint is free to use. You’ll receive financial product recommendations for things like credit cards and savings accounts, based on your profile.
Learn More: Mint vs Personal Capital
You Need a Budget (YNAB)
You Need a Budget (YNAB) is a premium budgeting tool for the more involved users. The latest update included direct import, which allows users to sync their bank accounts with YNAB and have transactions imported automatically rather than manually. Despite this, users still have to manually categorize each expense, which can be a benefit to some because it creates more awareness of spending.
What sets You Need A Budget apart from other budgeting tools is its comprehensive knowledge base. Users can sign up for free 30 minute online workshops on topics ranging from credit to debt. YNAB has a podcast with over 250 budgeting episodes and a YouTube channel that features weekly tutorial videos.
YNAB comes at a cost of $50 per year. This price tag may deter some users who aren’t looking to add another bill to their budget. However, YNAB’s website claims that new budgeters save on average $200 their first month, making the investment in the budgeting tool worth it. You can try out YNAB on a free trial for 34 days.
Good Ol’ Spreadsheet
Let’s not forget about the good ol’ spreadsheet for budgeting. Years ago, before online budgeting tools were popular, many people who budgeted simply tracked their income and spending in spreadsheets. It definitely takes more manual work and time than simply syncing your accounts on a financial aggregator. But the awareness you create when you update the budget spreadsheet yourself can be enough to get you out of bad spending habits and reach your savings goals.
You can grab a free budget template online with a simple Google search. If you have Microsoft Office, the program also includes free budget templates for Excel.
Stay On Track: 10 Guardrails to Help You Reach Financial Freedom
When choosing an online budgeting tool, it’s important to make sure the website is secure. The three online budgeting tools mentioned in this article (Personal Capital, Mint, and YNAB) have all been vetted for proper security protocols. Another benefit of using a spreadsheet for your budget is that you avoid giving external websites access to your financial accounts.
No matter how you choose to track your income and spending, the important thing is that you do it, especially if you are trying to save or get out of debt. Being aware of where your money goes, and knowing how to cut expenses, is a great first step toward financial freedom.
What’s your favorite way to budget?
Updated October 8, 2017 and originally published March 3, 2017.