Key Highlights Today, budgeting apps are great tools for personal finance. This blog post talks about two popular apps, Copilot and Monarch Money, highlighting their pros and cons. We will look at key features like budgeting, expense tracking, investment monitoring, and user experience. You will learn how AI plays a role and how these apps […]
Even the most budget-conscious shoppers have certain grocery items they refuse to give up, and these choices can be important for maintaining quality of life. Sometimes, spending a little extra on high-quality food adds value by supporting health, enjoyment, or family traditions. While saving money is important, making thoughtful exceptions for items that matter most … Read more
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One thing I run into frequently — both working with clients and via correspondence with readers — is people who have financial goals that, to put it bluntly, are not very good.
And to be clear, I just don’t mean that they’re goals I wouldn’t pick. I get excited about spending money on spring loaded camming devices and trips to the mountains. But if you want to spend your money on beach vacations, playing golf at expensive resorts, or whatever else it is that makes you happy, by all means go for it.
What I mean is that I see a lot of financial goals that are neither personally meaningful nor even useful for actual financial planning. For instance:
- “I want to reduce my RMDs” is not a good financial goal.
- “I want to make sure my Social Security isn’t taxable” isn’t a good financial goal.
- “I want to make sure my LTCGs will be taxed at a 0% rate in retirement” isn’t a good financial goal.
- “I want to convert [a certain amount or percentage] of my tax-deferred accounts by [age/date]” isn’t a good financial goal.
All of those things should be considered in the analysis. It might make sense to do those things. But they shouldn’t be goals.
Goals should be things like:
- “Increase the likelihood that I’ll be able to spend at least $X per year for the rest of my life.”
- “Increase the amount I’m likely to leave to my kids, after taxes.”
- “Be able to donate $X per year while still being able to satisfy our desired level of spending.”
- “Spend $20,000 extra per year in the first 5 years of retirement to take some trips we’ve always wanted to take — without putting our financial security at risk.”
For instance, with the stated goal, “I want to reduce my RMDs,” well, there are various actions we could take that would definitely reduce your future RMDs. But what if we do some modeling and it turns out that those actions would probably increase the likelihood of portfolio depletion during your lifetime? In such a case, why would we want to do it? As soon as “I want to reduce my future RMDs” comes up against a better financial goal (“I don’t want to run out of money”) the RMD-related goal gets discarded immediately.
When setting goals, I find that sometimes it’s helpful to imagine you have a small child playing devil’s advocate. For instance, for some people it might go something like this:
“I want to reduce my future RMDs.”
“Why?”
“I want to reduce the amount of taxes I’ll have to pay.”
“Why?”
“I’m concerned that taxes will make me more likely to run out of money during retirement.”
And that is what this person is actually concerned about.
What is the Best Age to Claim Social Security?
Read the answers to this question and several other Social Security questions in my latest book:
| Social Security Made Simple: Social Security Retirement Benefits and Related Planning Topics Explained in 100 Pages or Less |
Disclaimer:Your subscription to this blog does not create a CPA-client or other professional services relationship between you and Michael Piper or between you and Simple Subjects, LLC. By subscribing, you explicitly agree not to hold Michael Piper or Simple Subjects, LLC liable in any way for damages arising from decisions you make based on the information available herein. Neither Michael Piper nor Simple Subjects, LLC makes any warranty as to the accuracy of any information contained in this communication. The information contained herein is for informational and entertainment purposes only and does not constitute financial advice. On financial matters for which assistance is needed, I strongly urge you to meet with a professional advisor who (unlike me) has a professional relationship with you and who (again, unlike me) knows the relevant details of your situation.
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I think it’s safe to say that, like the common cold, almost all of us occasionally suffer from buyer’s remorse. Of course, avoiding buyer’s remorse is everyone’s goal; but nobody’s perfect. So today, against my better judgment, I’m going to share my worst case ever, which occurred many years ago, at the tender age of 25. That’s when I became the proud owner of my very first house: A cute little World War II era starter home of barely 1000 square feet.
The first innocent pangs of regret occurred shortly after I moved in. I was sitting in my freshly-painted living room when I heard what sounded like the dull rumble of a large herd of stampeding cattle. As the roar got louder, my cute little house began to shake — and then the wall hangings began vibrating against the wall.
The truth is, that cute little house sat less than 100 yards from a set of railroad tracks. Over the following weeks, those innocent pangs of remorse grew with each passing train.
At the time, DVR technology hadn’t been invented yet, so watching live television was a sadly comical affair: Thanks to the blasting horns and clacking wheels of those bustling freight trains that ran almost every hour on the hour each weekday, a three-minute audio gap in the middle of any program was always guaranteed.
“Why is the weatherman talking about a Pheasant Island cheese? And where’s Pheasant Island?” I’d ask the Honeybee as the 25th train of the day thundered by.
“He said ‘peasant elephant breeze,” she replied.
Obviously, in my haste to buy a home in a hot market, I stupidly failed to fully consider the ramifications of living near a set of railroad tracks. And to be fair, prior to signing on the dotted line, every time I visited that cute little house, there were no trains in sight.
Six months after moving in, my buyer’s remorse went code blue and I was ready to leave.Unfortunately, I bought my home at the very top of the market.
Within a year of moving in, my cute little house was so far under water that even Jacques Cousteau wouldn’t touch it. And it stayed that way for the next seven long, noisy, years.
In fact, this was easily one of my biggest money mistakes.
With that in mind, here are five important tips that will, hopefully, help you avoid a similar nightmare:
Do your due diligence
Knowledge is power, so shop around to find the best prices. Get multiple contractor estimates. Use the Internet to research products you’re not familiar with. And check the Better Business Bureau if you have any questions about the reputation of a particular dealer, or your Contractors State License Board if you are concerned about a particular contractor.
Avoid impulse buys
If a deal sounds too good to be true, it probably is. The amount of time you spend evaluating a product before finally pulling the trigger should directly correlate with the potential savings being offered in any “deal.” And never buy a big-ticket item without taking a day to sleep on it.
Evaluate the long-term impacts
Determine whether the purchase price fits within your short term budget and your long-term strategic plan. Don’t forget to evaluate any potential hidden costs that you may not normally consider. For example, if you’re buying a new car, are you thinking about the costs of maintenance and insurance too?
Check the return policy
Always evaluate the retailer’s return policy and carefully consider an extended warranty. How long do you have to return the product if you discover the product isn’t exactly what you wanted? Will the vendor give your money back, or will he only provide a credit for a future purchase? Check to see if there are also non-refundable costs. Finally, always keep your receipt and the original packaging so you can return the item.
When in doubt, walk out
There’s no shame in walking away. Again, if you have any doubt at all, go home and think about it. Resist high pressure sales tactics; refuse to be bullied. In fact, whenever I’m pushed by high-pressure salesmen I immediately tell them to back off. After all, you have the leverage, not them — but only until you buy.
Photo Credit: prestonbot
The post 5 Tips for Avoiding Buyer’s Remorse (That I Learned the Hard Way) appeared first on Len Penzo dot Com.
No matter how smooth the process or how dreamy your new home, moving house ranks up there as one of life’s most stressful experiences, and things can get particularly worrying as moving day approaches. It’s just not that easy when you have so many things that can go wrong, while having to move the entire anchor of your life from one place to another.
Even after someone has made an offer and everything seems to be moving along well, little problems can pop up right at the last minute. Perhaps the person you’re buying the house from needs the signature from an estranged relative to do so, who decides to delay the process and suggests a legal threat if they don’t get a larger slice of the pie. This has nothing to do with you, but can potentially knock over the process of your sale and move.
Usually, most house sales go through without too much drama, especially with good conveyancing solicitors in London handling all the legal elements, yet it’s worth knowing what might crop up at the final hour. In this post, we’ll discuss a few measures that can go wrong, and how to prevent or deal with them:
Getting Your Paperwork Ready Early
If you have all the documents you need in one place, signed, and backed up stored in your cloud drives, you have access to it when you need. Houses come with surprising amounts of paperwork, and so trying to find missing documents at the last minute can feel like losing your passport minutes before you check onto flight. Getting all the certificates, guarantees, and permissions together nice and early, categorized, submitted to your solicitor on request, and ready to go is essential. A simple folder for keeping track of things like boiler service papers and window guarantees can save so much hassle later on, even if you don’t (but only might) need them.
Understanding Your Buyer’s Position
Of course, you can’t read the minds of your buyer or those selling to you. But money matters can change for buyers during the time it takes to sell a house. Their mortgage offer might expire, or their financial situation could shift unexpectedly. Staying in conversation with them is essential then, and hope they’re open about these problems. Estate agents usually keep an eye on these things, but sellers can watch for warning signs too. If a buyer keeps asking for more time or suddenly goes quiet, it might mean there’s a problem brewing or that alternatives may need to be suggested. A broad timeline is that mortgage offers usually last about six months, and if the sale takes longer, buyers might need to sort out a new one.
Get Into The Habit Of Updates
If you offer continual updates to the opposing party’s agent or solicitor, perhaps they’ll do the same for you. It also gives you a chance to ask without seeming like you’re pestering. That can help keep everyone feel more comfortable about how things are progressing. Sales often go more smoothly simply because everyone knows what’s happening, even if there are small delays or hiccups along the way, and if there is an issue you can begin to work on them in advance. In other words, despite the important assets and financial costs being thrown around, selling a house doesn’t have to feel like you’re walking on fragile eggshells.
With this advice, we hope you can avoid being stung by a house buyer at the last moment, or at the very least see that possibility coming.
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[Editor’s Note: Want to make a huge impact in the lives of your medical school classmates while also earning some free gear? Become a WCI Champion today and be the financial hero your med school colleagues deserve by passing out free copies of The White Coat Investor’s Guide for Students book. If you’re a first-year student (whether you’re an MD, DO, DDS, Pharmacy, NP, PA, or CRNA), sign up here to get started. If you complete the mission, you’ll get a free WCI T-shirt, and if you take a photo of yourself and your classmates with the book, you’ll get even more merch. Register today to become a Champion and help generate millions of dollars for your classmates!]
By Dr. Jim Dahle, WCI Founder
Many a financial advisor will tell you that their new clients have gaping holes in their financial plans. However, that usually isn’t why they come to see the financial advisor. A client often comes in looking for help selecting investments. Investments are sexy. People love to think about having great returns and even more money than they already have. Investing can seem really complex—so complex that one must hire a professional to assist.
However, that is actually one of the largest misconceptions in the financial world (two others are that you get what you pay for in financial services and that the more active managing you do, the better your returns will be). An even bigger problem with a huge focus on a complex portfolio is that it sucks up all of your time and energy. Keeping investing simple will give you the bandwidth to focus on the things that will have a much bigger impact on your financial life.
Ahhh . . . the majesty of simplicity.
10 Biggest Gaps in Financial Plans
Today, let’s go over what people forget. What they ignore. What just doesn’t show up in their financial plan, if they have one at all.
#1 Disability Insurance
It’s amazing how many doctors are still running around without disability insurance. But you know what? Outside of medicine, it’s far worse at 14%. That’s right, only 14% of Americans are covered by a disability insurance policy. Want an even worse statistic? In 2012, it was 31%. No, I have no idea what happened. Fix this gap in your financial plan by purchasing a solid disability insurance policy. Protect your greatest financial asset (your ability to turn your time into money at a high rate).
#2 Life Insurance
Doctors can simultaneously buy too much of the wrong kind of life insurance (whole life because it seems more like an investment) and too little of the right kind of life insurance (term life). It might not be a huge gap in YOUR financial plan, but it sure will be a big part of your survivor’s financial plans!
#3 A Will
The most important function of a will is to designate someone to take care of your kids and their finances in the event of your death. So, you have kids but no will? Seems like kind of a big gap, right? Go get a will.
More information here:
My Financial Plan Calls for Me . . . Being Hung by My Fingernails????
With Our Expanding Family, We’ve Had to Break Our Financial Plan – Twice
#4 Beneficiary Designations
Remember when you opened that IRA, HSA, 401(k), or 529? They asked you to designate some beneficiaries. Guess what? Not everyone did. Or maybe they didn’t change the beneficiaries after getting a divorce or after some other life change. It doesn’t cost anything and it usually doesn’t take very long, but it’s a pretty important part of financial planning.
#5 Your Income
People don’t like talking about their income. The natural consequence of that is that there is a very wide range of incomes for the same or similar jobs. The intraspecialty pay variation dwarfs the average interspecialty pay variation. Knowing what you’re worth and getting it is a big part of financial planning. Better yet, figure out what the top 10% of those in your field are doing to have such a high income and borrow some of their techniques.
#6 Your Budget and Savings Rate
Budgeting seems like a pretty basic part of financial planning, right? You might be surprised how many of your peers, many of whom have a financial planner, can’t tell you what their savings rate is. Of all the numbers to keep track of early in your career, this one has to be near the top. It’s not even hard to calculate. Take all the money you put toward retirement this year and divide it by your gross income. That’s it.
More information here:
How to Write an Investment Policy Statement
#7 Goals
Want to have even less fun than you’ll have budgeting? How about setting goals? This one is apparently so hard and/or so painful that lots of people try to invest without doing it. Seems hard to me. I mean, what’s the point of investing without any sort of a goal? How does anyone even know what to invest in if you don’t know what the money is for or when it might be used?
#8 Credit Card Debt
Sixty-one percent of Americans have credit card debt. Sixty-one percent of Americans report that they own stocks, so presumably, something like 70%+ of Americans are investors. That means that at least 30% of Americans are investing despite having credit card debt. Credit card debt, typically at 15%-30% interest rates, is by far the best guaranteed return investment available to 61% of Americans. Investing in pretty much anything before paying off credit card debt is one of the dumbest things an investor can do.
#9 No Mortgage Plan
Many investment advisors don’t take into account the presence of a mortgage when they give advice. Perhaps the investment portfolio includes a bunch of bonds paying 3% while a 7% mortgage is sitting there. Or the mortgage should have been refinanced years ago. Or the mortgage is actually what is keeping someone from retiring. People always wonder, “What will I do for health insurance if I retire early?” Well, you could always use the money that was going toward the mortgage to pay for it if you had paid off that debt. The point is that a mortgage is a huge piece of most people’s financial lives, and ignoring it in a financial plan is a mistake.
More information here:
Should You Pay Off Debt or Invest?
#10 No Student Loan Plan
It’s really sad that student loan burdens are so high and that the student loan landscape is so complicated that this now must be a major part of the financial plan of many people, especially doctors. After we started StudentLoanAdvice.com, we found that just providing some education and a little help running the numbers saved doctors an average of $190,000 on their student loans. Like managing a mortgage well, managing the costs of education well goes a long way toward a sound financial plan.
Fill these gaps in your financial plan, and you and your finances will be a lot happier.
What do you think? Which of these gaps do you think is most common? Which ones do you still need to fill? Comment below!
The post The Big Holes in Your Financial Plan appeared first on The White Coat Investor – Investing & Personal Finance for Doctors.
TreasuryDirect.gov is the official site for individuals to directly purchase US savings bonds and US Treasury bonds, including new T-Bills and TIPS at auction. But is it still worth the hassle? Back in August 2024, TreasuryDirect sent me the following e-mail when converting my paper bonds to electronic:
Cases are worked in the order they are received in our office. Your request is important to us and will receive attention as soon as possible. Please be aware of our estimated processing times to process your case which are based on the case type:
Cases requesting to cash Series EE and/or Series I paper savings bonds held in your name, at least 4 weeks.
Cases requesting to cash Series HH savings bonds held in your name, at least 3 months.
Unlocking your TreasuryDirect account, updating bank information in that account, or converting your paper savings bonds into electronic bonds in TreasuryDirect, at least 4 weeks.
Claims for missing, lost, or stolen bonds, at least 6 months.
All other cases, at least 20 weeks.
If we require additional information to process your case, we will contact you. Thank you for your patience.
That’s at least a month for some pretty basic stuff like unlocking your account because you forgot what you said was your favorite movie. In October 2024, the WSJ published TreasuryDirect to Bond Buyers: Moving Your Money Could Take a Year regarding long delays transferring Treasury bonds to outside brokerages.
The resulting customer service backlog is straining the Treasury Department’s antiquated system, which can require verified signatures and paper forms sent through the mail. People transferring securities from TreasuryDirect to third-party brokerages face especially long waits because those requests are processed manually, according to people familiar with the matter.
TreasuryDirect tries to complete most of them within six weeks, but can take 12 months, depending on capacity. A notice on the TreasuryDirect website says some customer service requests “may require 12 months or more to process.” The notice had said the longest delays were about six months until the end of July.
Finally, there are multiple posts on the Bogleheads, Early Retirement, and Reddit forums about the difficulties of dealing with TreasuryDirect after the account owner passes away. Here’s one example from a user that was already familiar with the website, knew all the account information, and had the beneficiaries assigned correctly, but still encountered multiple forms, conflicting instructions, and months of delays – Treasury Direct – The Eternal Wait and No Way To Track Transfer:
I’m closing in on 3 months waiting for Treasury Direct to transfer several EE bonds and an I bond that were in my dad’s online Treasury Direct account to my online Treasury Direct account. My dad passed away at the end of December 2022 and I was registered as the beneficiary with POD on all of the bonds.
And the follow-up (emphasis mine):
My dad’s I bonds were transferred to me around the 4-5 month mark.
After that experience, I decided to liquidate all of my TD accounts, and will encourage my husband to do the same. I personally don’t want a repeat of this experience, or make my heirs go through such a lengthy process in resolving my estate.
What I learned from this experience is to not discount how much stress and mental bandwidth it takes to deal with TD when you’re also grieving the loss of a family member, and trying to settle the estate so you can move on financially.
Another similar estate horror story here.
Takeaway #1: Expect and prepare for slow service. It’s very clear that TreasuryDirect is an underfunded government program with very limited resources. Even most mega banks no longer cash in old paper savings bonds, so that has increased their workload as well. Any time there is a surge in demand, either due to relatively attractive rates on savings bonds or Treasury bills, they are going to get backed up. If you happen to lock yourself out of your account during one of these times, it may take months to fix it! Be very careful before you close that old bank account linked through TreasuryDirect. Use a reliable password manager, and be sure to add your answers to questions like “Who is your favorite child?”. Be sure to note your account information in multiple documents, in case someone needs to find it.
Takeaway #2: Never use TreasuryDirect for anything besides US savings bonds. TreasuryDirect.gov is the only place where you can purchase US savings bonds, but it is not the only place you can buy individual Treasury bonds and TIPS. Just open an account with a broker with better resources and a bond desk like Fidelity, Schwab, or Vanguard and go through them.
Takeaway #3: Consider your heirs and simplifying your accounts as you age. In my opinion, I would also avoid TreasuryDirect if you are older and you don’t want to burden your estate executors with dealing with TreasuryDirect. You can save them several months and many hours of calls and paperwork by liquidating your assets and consolidating them elsewhere. TreasuryDirect will likely take the longest to resolve out of all of your financial accounts.
Personally, I continue to gradually liquidate the savings bonds in my TreasuryDirect account and buying individual TIPS in an outside brokerage account instead. I will have to pay some taxes on the deferred interest, but since I am getting a 1% to 2% higher fixed rate via TIPS in many cases, it’s not that bad. I also worry that my survivors might completely overlook this account if something unexpected happens (there are no mailed paper statements, or even monthly e-mails of online statements.) I’d like to minimize any unnecessary headaches and consider this part of my overall portfolio simplification process.
If I was younger and still grinding for every small edge, I would probably still accept these shortcomings for the right interest rate and tax deferral properties, but nowadays the calculations are different.
Image source: Sitejabber
Living alone has its benefits, but it also comes with the constant temptation to spend money just to break the quiet. A quick coffee run here, an online purchase there – it adds up quickly. I’ve been working on finding ways to occupy my mind without spending on unnecessary extras. After some trial and error, I’ve settled on three budget-friendly pastimes that are saving my wallet and giving my mind something engaging to do: puzzles, Legos, and Christmas movies.
Puzzles: Mindful Focus Without the Extra Cost
Puzzles are, hands down, one of the best ways I’ve found to keep myself entertained without a single dollar spent after the initial purchase. We’ve done puzzles as a family since the kids were little, little. I’ve even taken puzzles on our roadtrips. We have done them in hotels. Puzzles are a family favorite. We do them, then we donate them. And I can typically pick them up for $5-8. And always have 1-2 in the board game closet. I pulled this one out when I got back from Texas.
Puzzles give me something to focus on, piece by piece, and keep my mind active and absorbed. Plus, each puzzle stretches out for hours or even days, depending on my pace, which means it’s an investment in entertainment that lasts far longer than a one-time outing. When I’m puzzling, I don’t feel the itch to spend because my mind is too occupied to even think about shopping. Win-win.
Legos: A Creative Outlet That’s Surprisingly Affordable
Rediscovering Legos as an adult has been one of the best surprises in my quest for frugal entertainment. It started when my daughter’s boyfriend gave her a Lego flower bouquet. I thought it was so cute! And now I’ve got my own. I anticipate that after the hours I spend building and then admiring the end result. It’s a way to scratch that creative itch and stay busy without looking for distractions online. The act of building with my hands keeps me from looking for other ways to pass the time that could easily turn into impulse spending. And it’s really been working. (I realized yesterday that I haven’t had to get gas since returning from Texas.)
Christmas Movies: Cozy Entertainment at No Extra Cost
I’ve always loved Christmas movies, but now they’re more than just a tradition; they’re my go-to for affordable relaxation. I pull up the options, settle in with some tea and a blanket, and instantly feel that cozy holiday spirit. It’s an ideal way to pass the time without adding to my expenses. It’s amazing how much this cozy ritual calms the urge to browse online when I’m alone.
Protecting my Wallet…and my Sanity
Each of these activities keeps my mind engaged, my hands busy, and my wallet safe. Finding frugal joy in puzzles, Legos, and Christmas movies has been the perfect way to entertain myself without the usual spending pitfalls. They’re not just pastimes; they’re my defense against unnecessary spending and my go-to mental escapes. So, for now, I’ll happily settle in with my puzzle pieces, a stack of Lego bricks, and a holiday film queued up – because sometimes, simple, budget-friendly pleasures are exactly what we need.
Sidenote: One nice thing about living alone now is that I can leave them out on my kitchen table for days, weeks, even months without bothering anyone or prohibiting anything like a family dinner. How do you entertain yourself on a budget?
The post Finding Frugal Joy: Puzzles, Legos, and Christmas Movies as Budget-Friendly Entertainment appeared first on Blogging Away Debt.
Mint, one of the best budgeting apps, shut down early in 2024. As longtime budgeting fans, we’ve had a difficult time finding a replacement with in-depth net worth tracking that’s both affordable and easy to use. In order to find our ideal budgeting software, we spent hours researching the best budgeting apps on the market, and this round-up is the result.
Our top pick ended up being Lunch Money, but this article has reviewed a variety of software options to help you find a solution that works for you, whether you’re a flexible budgeter or envelope method enthusiast. Check out the list below, and let us know if there are any noteworthy budgeting apps we missed by leaving a comment or emailing me.
1. Lunch Money
Lunch Money is the newest and perhaps most interesting budgeting app on the scene. The app is the brainchild of Jen Yip, an experienced Silicon Valley developer. One of the main features that makes it unique is crypto integration, which allows you to track the value of your digital currencies alongside your other investments. There’s also multi-currency support for digital nomads and other users who spend and save in more than one currency.
The platform has a streamlined, intuitive design, and allows you to create unlimited budgets with custom categories. Lunch Money can suggest budget amounts for you based on past budgets or spending. Unspent funds from last month can even be rolled over automatically and added to your spending targets. Automatic expense tracking is another area where this software really shines because it’s so accurate. You can even fine-tune the rules used to categorize your purchases and add tags to batch transactions purchases together, such as travel costs for an upcoming vacation. Best of all, its basically automatic. You don’t have to do data entry.
For easy viewing, you can filter your transactions using criteria like category, account or payee name, tags, and date ranges. Lunch Money even compiles reports on patterns it notices within your spending. You’ll receive a monthly email that summarizes your transactions and highlights your most expensive purchases. Plus, you can use the analytics tool to spot trends in your financial behavior, like which categories you tend to spend the most on.
Getting Started
Lunch Money is web-only, which means there isn’t an official smartphone app. However, Lunch Money’s community of developers has created unofficial add-ons, including a smartphone app and Zillow integration to track real estate values. Lunch Money offers a 30-day risk-free trial and a pay-what-you-can pricing model that costs between $50 and $150 per year. If you don’t want to pay annually, there’s also a $10 per month option. Once you’re signed up, you can securely sync your bank account information using Plaid.
You can sign up for Lunch Money here
2. Windfalls AI
While technically not a budget app, Windfalls AI, known as Windfalls, is the latest “we negotiate your bills for you in return for a cut of the savings” company. The model is basically tried and true, with established players like Billtrim being available. However, what makes Windfalls interested in they have managed to work up a very slick AI which actually negotiates on your behalf. This is interesting because the AI basically deals with doing all the calling and negotiating.
The reality is big service providers like Comcast or your credit cards are constantly looking for ways to raise prices on you, so you might as well have technology on your site that lets you reduce your costs automatically and passively.
Getting Started
Windfalls is web only. Web only which means if you want to sign up, you’ll have to use your browser, there isn’t a smartphone app. Sign up is pretty easy. What you need to do is navigate to their site and open an account. Then upload all the bills you want to save money on. The website pretty much takes care of the rest. When their software has done its work, they’ll notify you and send you a bill.
The whole process is effective and a fresh take on an established savings model. There is some manual work, but it’s only like 20 minutes worth of effort, and you can actually save money with the software, so its worth it.
You can sign up here.
3. YNAB
You Need a Budget is one of the best budgeting apps for people who prefer zero-based budgeting, which involves giving every dollar you earn a specific job. YNAB allows you to create separate line items for your recurring bills, variable expenses, savings goals, and debt repayments. Throughout the month, you’ll assign money to each of these line items to ensure they’re all fully funded by the due dates. YNAB also syncs with your bank account and credit cards to automatically keep track of and tag your transactions. If you overspend in a certain area, you’ll be prompted to reassign funds from other categories to avoid a financial shortfall.
Some users say that the software is complex and has a bit of a learning curve. New users must put in some legwork to understand the methodology behind YNAB in order to use it. For example, the app has jargon you’ll need to learn, such as age of money, wish farm, and true expenses. YNAB publishes instructional articles to help you get started, and there’s an active Reddit community that can answer your questions.
Getting Started
YNAB has a web version and apps for your smartphone, tablet, and even your smartwatch, allowing you to budget from anywhere. You can sign up for a free trial on YNAB’s website. The app will ask you a few questions about your expenses, debt, and savings goals to set up an account tailored to your finances. Then you can further customize your budget from there. After the free trial period, YNAB costs $14.99 per month or $109 per year if you pay annually. This puts it on the expensive side of the best budgeting apps.
You can get YNAB here.
4. Quicken – Simplifi
Another notable mention in this list of best budgeting apps is Quicken Simplifi. Quicken Simplifi automatically creates a budget for you based on your income, recurring bills, savings goals, and planned spending. Your spending plan will adjust throughout the month based on your transactions, which the app reconciles and categorizes for you. At a glance, you’ll be able to view how much money you can spend during the rest of the month based on your purchases and savings targets.
The app also has in-depth financial reporting. You can track your spending patterns over time and filter transactions by payee or tags you create. There’s also an investment portfolio page that shows the value of your current holdings, investment gains and losses over time, and news updates related to your assets. Users appreciate the tax planner, which allows you to keep track of your refunds and view your projected tax liability.
Getting Started
Quicken Simplifi has both a web and mobile app, but no free version. The subscription costs $5.99 per month when billed annually. However, Quicken reportedly runs frequent sales, so you may be able to score a discount. It’s worth noting that Quicken Simplifi can be difficult to set up properly. One of the main complaints from reviewers is issues linking bank accounts and credit cards. Luckily Quicken offers a 30-day money-back guarantee so you can try it risk-free.
The link to Quicken Simplifi’s website is here.
5. Rocketmoney
Rocket Money analyzes your spending history and automatically creates a budget for you. Plus, the app will categorize your transactions for you and alert you if you come close to exceeding any of your budget categories. You’ll also receive notifications about upcoming charges and low balances in your accounts, which helps prevent overdrafting. Rocket Money can even determine the best time of the month to set aside savings based on your cash flow. If you set up a savings account with Rocket Money, you can take advantage of the auto-savings feature, which deposits money into savings on your behalf.
Like other top budgeting apps, Rocket Money provides spending reports and insights to help you optimize your finances. You can also view your credit score and link investment accounts to track your net worth right in the app. There’s even a bill negotiation service that saves you money on car insurance, cable, subscriptions, and more. However, you’ll be charged a percentage of the first year’s savings as a fee, which reduces the financial benefit of the program.
Getting Started
Although Rocket Money has a free version, it doesn’t allow you to access certain features, such as net worth tracking and custom budget categories. So you may need to upgrade to the premium subscription, which has a pay-what-you-can pricing model. Subscribers can choose a fee of anywhere from $6 to $12 per month based on their financial means. There’s also a 7-day free trial, allowing you to test the waters. Rocket Money has both a desktop and mobile version, allowing you to budget on the go.
Rocket Money’s website is here.
6. EveryDollar
EveryDollar was created by financial guru Dave Ramsey and utilizes the zero-based budgeting method, making it similar to YNAB. In the budget tab of the app, you can forecast your expected income, planned spending amounts, and savings targets. Throughout the month, EveryDollar will keep a running tally of your actual spending totals and remaining funds.
Users with a free plan must manually input their transactions, whereas premium subscribers can connect their bank account for automatic syncing. EveryDollar also has an insights section with graphs and charts that break down your spending patterns and income fluctuations over time. This feature enables you to easily see how well you’re sticking to your budget and identify areas for improvement. Premium subscribers can also set financial goals within the app, tracking their progress and net worth along the way. Plus, they get access to a paycheck planning feature to help them manage their cash flow throughout the month as bills come due.
Getting Started
EveryDollar has a web version and a mobile app if you’d prefer to budget on your phone. To get started, simply create an account and answer a few questions about your goals and finances. You’ll also be asked if you want a free or premium subscription, which costs $17.99 per month or $79.99 per year. EveryDollar offers a free trial, allowing you to test out the premium features before committing. If you have questions during setup, you can visit the help center or call the support hotline.
You can find EveryDollar here.
7. Empower Personal Dashboard (Personal Capital)
Empower Personal Dashboard is the best budgeting app for retirement planning. The software allows you to track your net worth and investments, including alternative assets like artwork and gold. Empower also displays your portfolio’s performance over time and analyzes your asset allocation to help you diversify your holdings. Plus, the app can estimate whether or not you’re on track to hit your retirement goals. It considers factors like the value of your investments, your household composition, location, projected Social Security income, and more.
You can even test different annual savings rates to see how they’ll affect your progress. Empower also offers a savings planner to help you set concrete goals and build an emergency fund. Last but not least, the budgeting tool automatically tracks your transactions and breaks down your top spending categories to identify potential money leaks.
Getting Started
Empower is completely free and easy to use and works on both mobile and desktop. Keep in mind that some features are not available on the mobile app, such as the investment performance tracker. Additionally, Empower may try to upsell their premium wealth management service to certain users.
You access Empower here.
8. Pocketguard
PocketGuard is easy to use and customizable, allowing you to create 70 or more budget categories if needed. When you use up 50% or more of your budget in a certain category, you’ll get an alert to prevent overspending. PocketGuard also helps you plan for annual expenses in advance by scheduling them to recur on a yearly basis. You can even set SMART savings goals and get notified when you aren’t setting aside enough money to reach them.
If you have debt, you can create a debt payoff plan using either the snowball or avalanche method. PocketGuard will generate a payoff schedule based on your debt balances and available funds after living expenses. You can even adjust this plan and play around with different scenarios to see how your spending choices affect your debt-free date. Additionally, PocketGuard has personal finance courses, a subscription canceling feature, a bill negotiation service, and analytics tools to help you manage your cash flow.
Getting Started
PocketGuard has both a web and mobile version and offers a 7-day free trial so you can test it out. If you decide to become a paying subscriber, you’ll be charged $74.99 annually or $12.99 per month. It’s also worth noting that the bill negotiation service takes a cut of your savings as a fee.
To navigate to PocketGuard’s website go here.
9. Honeydue
Honeydue is a great solution for couples who split expenses and have multiple accounts to manage. You can link your loans, bank accounts, credit cards, and investment platforms to view your full financial picture all in one place. Couples who haven’t fully combined their finances can choose what to share with their partner. If there are certain transactions or accounts you’d rather keep separate, you can hide them to maintain your privacy.
Honeydue makes household budgeting easy by allowing you to set spending limits for each category. You and your partner will receive alerts when you’re close to exceeding your budget. The app automatically tracks and categorizes your spending, even indicating which partner made each purchase. If you owe your partner money for takeout or other everyday expenses, you can settle the balance right in the app. The main downside is the lack of technical support. Some reviewers were frustrated that the app was buggy and no one was available to help troubleshoot.
Getting Started
Honeydue is completely free to use. Simply download the mobile app, personalize your profile, and invite your partner to get started. Keep in mind that there’s no web interface, so you and your significant other will both need a mobile phone.
Honeydue can be found at the Apple app store.
10. Greenlight
Greenlight is one of the best budgeting apps for children and parents. Paired with the accompanying debit card, Greenlight teaches kids how to save and spend responsibly. From the app, guardians can set spending limits and block unsafe transactions to establish guardrails. Greenlight also allows kids to request and receive funds from their parents as needed. Plus, parents can assign chores and automatically send the payment to their child’s debit card.
Kids can use the app to set savings goals and earn interest on their funds. They can also play fun financial games to learn more about how money works. Premium Greenlight plans come with additional safety features, such as location tracking, SOS alerts, and driving reports. There’s also an investing feature to help your child learn the power of compound interest. With your permission and guidance, they can trade stocks to get a head start on building wealth.
Getting Started
Greenlight’s most basic plan costs $4.99 per month and includes debit cards for up to five children. However, if you want your kids to be able to earn cash back on their purchases and begin investing, you’ll need to upgrade to the Max Plan for $9.98 per month. To access the teen driving reports and safety features, you must subscribe to the highest Infinity tier for $14.98 per month.
Greenlight can be found on the company’s webpage.
11. WallyGPT
WallyGPT is one of the best personal finance apps powered by AI, allowing you to manage your finances with ease. Wally can automatically track your income, spending, and upcoming bills, even reminding you of due dates to help you avoid late fees. It can also calculate your net worth to keep you updated on your financial progress. You can even ask Wally questions about your finances and receive detailed, accurate answers. For example, Wally can help you create a personalized savings plan for a big upcoming purchase, such as buying a home or car.
You can also ask Wally to explain trends and changes in your spending to help you understand and modify your financial behavior. The app is even capable of breaking down complex financial topics like sequence of returns risk into simple terms anyone can understand. Although Wally boasts some impressive features, it gets a low rating overall. Wally received 1.7 stars on the Google App Store and 1 star in the Apple Store. Some users reported tech issues and bugginess that prevented the app from working correctly.
Getting Started
WallyGPT has both a desktop version and a mobile app. It has wide compatibility, linking with over 15,000 financial accounts in 70 countries. You can take advantage of the free version to level up your finances without having to make room for another subscription in your budget. However, you’ll be limited to about 50 questions per day. So if you anticipate needing more support than that, consider upgrading to one of Wally’s paid subscription plans.
12. Fudget
Fudget is a simple budgeting app that doesn’t sync with your bank accounts or automatically track your transactions. You’ll have to input each of your purchases individually, just like you would on paper or in Excel. This can help you be more mindful of your purchases and reflect on your spending. Fudget allows you to carry over recurring income and expenses from month to month, so you won’t have to waste time reentering your fixed bills constantly.
The app also enables you to add notes to your transactions, easily search and filter through your entries, and visualize your spending through charts. There’s even a calculator and running tally of your purchases to help you avoid overspending. Due to its pleasant user experience, Fudget received a high rating of 4.7 stars with over 600 reviews. But the lack of automatic expense tracking could wreak havoc on your finances if you slack on entering your purchases or “fudge” your spending.
Getting Started
Fudget works on IOS, Android, Windows, and Mac. The basic version gives you 5 different budgets and 250 entries for free. If you need more entries, you can upgrade to the premium version for $19.99 annually. Not ready to commit to a full year? You can take advantage of the 7-day free trial or opt for the six-month plan instead, which costs $14.99.
You can download the app for Android or Iphone on their website.
13. CountAbout
CountAbout is one of the best budgeting apps for solopreneurs, allowing you to manage your company’s finances and your own in one place. For an extra fee, you can send invoices to customers and upload receipts to track your business expenses. You can also create a bill payment schedule to help manage your cash flow.
The premium version of the app automatically downloads data from your bank accounts, credit cards, and investment accounts. However, it doesn’t categorize transactions for you, so you’ll have to manually reconcile them. Users can create as many budget categories as they want and split transactions as needed. There’s also a useful savings projection tool that shows you how small spending reductions can speed up your financial progress.
Getting Started
CountAbout has a web version and a mobile app. You can try the software risk-free for 45 days to make sure it’s a good fit. The basic plan costs $9.99 per year, billed annually. If you want automatic bank syncing, you’ll need to upgrade to the premium plan for $39.99 per year. Invoicing costs an additional $60 per year, and the ability to upload receipts to transactions costs $10 per year.
CountAbout can be accessed at the apps webpage.
14. Qube Money
Qube Money aims to provide a more regimented budgeting system complete with an app, bank account, and debit card. The app utilizes the envelope budgeting method to help you plan your spending in advance. You’ll create envelopes called “qubes” for each of your bills, discretionary spending categories, and savings goals. Then you’ll fund these envelopes using the cash in your Qube bank account. If needed, you can transfer money between qubes at any time. Qube’s proactive spending feature helps ensure you stick to the plan you create. The linked debit card maintains a $0 balance until you select which envelope to spend from.
Qube’s premium plan also allows you to add a companion to your account. Your companion will receive their own debit card so they can spend from the joint bank account and shared qubes. The premium subscription also allows you to create unlimited qubes, schedule recurring transfers, and set up a plan to fund your qubes automatically every month. If you want to add more than one companion to your account, you can sign up for Qube’s family plan. It allows you to give debit cards to up to five people in your household.
Getting Started
After creating your account, you can choose the level of features you need. While there is a free option, access to premium features such as subscription management and the ability to add a companion can be unlocked for $12 per month. If you have a larger household, consider upgrading to the family plan for $19 per month. Keep in mind that each card holder will need a smartphone with the Qube app to select the appropriate envelope and load their debit card. The Qube app works with Apple and Android.
QubeMoney can be found here.
15. Buckets
Billed as a “Private Family Budgeting App”, Buckets is one of the best budgeting apps for the envelope method. It allows you to set aside money in various “buckets” for recurring bills, discretionary spending, savings goals, and debt repayments. As you spend throughout the month, you’ll manually enter your transactions or upload your bank statements. Then you’ll reconcile each transaction by indicating which “bucket” the purchase is associated with. Keep in mind that Buckets doesn’t automatically sync with your bank unless you sign up for SimpleFIN Bridge, which costs extra.
Getting Started
Buckets has a very flexible free trial that they advertise as having no time limit. When you’re ready to buy the software, you’ll only owe a one-time payment of $64. The software is designed for local computer use for increased data privacy. It’s compatible with Macs, PCs, and Linux machines. There’s also a mobile app that allows you to input your purchases on the go, which can be synced with your computer software for real-time tracking.
Buckets can be found at budgetwithbuckets.com.
16. Tiller
One of the best budgeting apps for Excel lovers is Tiller, which connects your bank accounts to your spreadsheets. Tiller automatically transfers your financial data to Excel or Google Sheets, allowing you to easily track your transactions, income, debt, and savings balances. Tiller categorizes your purchases for you based on rules you set and comes with custom templates to help you personalize your spreadsheet. You’ll also receive a daily email that summarizes your recent transactions and balances, giving you an updated picture of your finances.
Tiller is completely ad-free and has a collaboration feature that allows you to share your budget with a partner in real-time. There’s a library of help guides, a customer care team, and a peer community to support you if needed.
Getting Started
Tiller can be integrated with Google Sheets or Microsoft Excel depending on your preference. You can access your budget spreadsheet via your desktop or the mobile app version of Excel or Google Sheets. Tiller has a 30-day free trial and charges $79 per year thereafter.
Tiller can be found here.
17. Goodbudget
Last in the list of the best budgeting apps, Goodbudget is home budgeting software based on the envelope budget system. The main idea is you use the software to make digital “envelopes” for all your budgeting categories – housing, food, automotive, insurance, etc. Then you use the app to allocate an amount of money up front for each envelope. This allows you to plan your spending, not just track it. Planned spending is usually a good idea, especially for large savings or debt reduction goals.
While Goodbudget is well reviewed (4.6 stars out of 5 in the App Store), the app is high maintenance. It doesn’t automatically update your bank account and handle transactions for you. But, data categorization and some other features are semi automated. The software does have features that lets two people synchronize budgets, making the app good for couples. It is available on the web, or on Android or iPhones.
Getting Started
Getting Goodbudget is pretty easy. You just need a money, a bank account and a valid working email. The software has a free and a paid Plus plan at $10 per month or $120 per year.
You can find them here.
Frequently Asked Questions
Are budget apps worth it?
You probably want to create and stick to a budget to save money. So it may seem counterintuitive to pay for budgeting software and add another subscription to your monthly expenses. However, many people find that they actually come out ahead, saving more money than the app costs. For example, You Need a Budget says that new users save an average of $600 in their first two months, which more than covers the $109 annual fee.
According to an Intuit survey, more than 60% of respondents didn’t know how much they spent in the previous month. The best budgeting apps sync with your bank account and credit cards to automatically track and categorize your transactions. They also have handy charts and graphs that can help you understand your spending at a glance, enabling you to stay on top of your finances. Although it’s possible to manage your money with just an Excel sheet, the additional time-saving features make the best budgeting apps worth the cost.
What is the best alternative to Mint?
Still grieving the loss of Mint? Many people loved the app’s streamlined interface, which showed them their whole financial picture in one place, from investments to average monthly spending. Lunch Money is one of the best budget apps for former Mint users due to its pleasing design, ease of use, and comprehensive financial tracking. Lunch Money automatically syncs with all of your important financial accounts, allowing you to keep tabs on your spending, investments, and bank account balances. You can even monitor your crypto holdings and outstanding debt all from the same app, giving you a bird’s eye view of your finances.
What’s the best budgeting app to help with finances?
The best budgeting app for you depends on your financial needs and money management style. If you and your partner are trying to get on the same page about money, apps designed for couples like Honeydue and Monarch Money may work for you. For individuals who want to keep tight control over their spending, zero-based budgeting apps like YNAB and EveryDollar are worth considering. They help you decide how to spend each dollar you earn in advance, helping you create a strict game plan for your money. People who prefer a flexible app that works with any budgeting style will enjoy Lunch Money, our top pick.
What is the best budgeting method?
One of the best budgeting methods to help you reign in your spending is the 50/30/20 rule. It involves setting aside 50% of your income for needs like housing, food, and utilities. Roughly 30% of your income can be allocated toward wants like vacations and hobby purchases. The remaining 20% of your salary should be funneled into savings and investments. If needed, you can adjust these percentages to suit your unique financial situation. For example, if you have outstanding student loans, you might consider reducing your entertainment spending to clear your debt faster.
The Bottom Line
Most of us don’t have enough time to meticulously comb through our bank statements and figure out exactly what we’re spending. Many of the best budgeting apps will automatically track and categorize your transactions to make it easier to manage your money. Even if the budgeting software you choose is pay-to-play, it will likely save you more than it costs by giving you better financial clarity and control.
Author’s Contact Information:
Vicki Munroe
Email: [email protected]
James Hendrickson
Email: [email protected]
Phone: (202) 468-6043
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