Many financial experts believe introducing the new tax regime (NTR) has destroyed the habit of saving. But does this make any sense? The NTR has no section 80C benefits like the old tax regime. So they believe that those who were forced to buy tax-saving products and forced to “save tax” (that is lower than…

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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

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

Material Connection Disclosure: Some of the links in this article are “affiliate links.” If you click on the link and make a purchase or sign-up, Saving Advice will receive an affiliate commission – which will help keep the site going. We only recommend products we think will add value to savingadvice.com readers. We are disclosing this in compliance with Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Our favorite things to do in Manchester Vermont – fun driving experiences, art, history, and more! Over the last few years, Vermont has become one of our favorite travel destinations. We’ve spent significant time road-tripping to various small towns and cities, including Bennington, Killington, Shaftsbury, Brattleboro, and Woodstock. I aim to fully explore The Shires of […]

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Politicians don’t control the stock market.
When stocks go up presidents get too much credit and when they go down they get too much blame. It’s mostly circumstantial depending on the timing of cycles and such.
But the markets move faster than ever these days. Investors are constantly pricing in the future, sometimes right, sometimes wrong, yet never in doubt.
The stock market was already up big heading into t…

Dealing with debt during divorce is often more complex than dividing assets. While you may agree on who will pay what debts in your divorce agreement, your creditors may have different ideas. Understanding how debt affects your divorce, and vice versa is crucial for protecting your financial future.

Are You Responsible For Your Spouse’s Debt in Divorce?

You are not legally responsible for your spouse’s debts unless you have taken them on jointly as a co-borrower or co-signer on the account. This applies whether you are legally married or in a common-law relationship.

For any joint debts where both spouses’ names appear on the account, you are “jointly and severally liable.” This means each spouse is 100% responsible for the total amount, regardless of who made the purchases or why. Creditors can pursue either spouse for the entire balance, even if your divorce agreement assigns the debt repayment to your ex-spouse.

Individual debts remain separate by law. Debts in your partner’s name remain their responsibility. Common examples include student loans, bank loans, and credit cards, which are in their name only.

Can a Divorce Agreement Divide Debts?

The concept of marital or family debt can complicate matters during divorce proceedings.

Debts incurred during your marriage might be considered marital debt, even if they’re only in one partner’s name. This could include various types of debt like credit cards used for household expenses, lines of credit for home renovations, or car loans for a family vehicle. Your divorce agreement might divide family debt between you, but this doesn’t change creditors’ rights to collect. This is because, legally, debts are either joint or individual.

The obligation to repay debt cannot be legally transferred through a divorce or separation agreement without the consent of your creditors.

If your ex-spouse fails to pay joint debts assigned to them in the divorce agreement:

• Creditors can still pursue either spouse for joint debts
• You may need to pay the debt and then seek reimbursement through family court
• Your credit rating can be affected even if the agreement says your ex is responsible

Your divorce agreement might divide debt repayment responsibilities between you, but this doesn’t change creditors’ rights to collect. You are getting divorced from your spouse but not your bank.  They are not a party to the divorce, so just because your separation agreement says that your ex-spouse is assuming the joint debt unless the lender agrees to it, it’s not legally binding.

Who is Responsible for Credit Card Debt in a Divorce?

In a divorce, the obligation to repay credit card debts and lines of credit you owe cannot be legally assigned by a divorce agreement like assets. Who is responsible to pay credit card debt after a divorce depends on the type of card:

Supplementary Cards: These are cards where one spouse is the primary cardholder, and the other is an authorized user. Generally, only the primary cardholder is legally responsible for the debt. Responsibility for payment cannot be transferred in a divorce decree. It is better to remove secondary cardholders from your accounts during separation.

Joint Credit Cards: If both names appear on the statement or you were co-applicants, both spouses are fully responsible for the entire balance. This includes charges made by either spouse. Cancelling the card doesn’t eliminate responsibility for existing debt. Even if your divorce agreement assigns the debt to your ex-spouse, the credit card company can still pursue you for payment. It is wise to cancel joint credit cards as soon as you separate and get new cards in your individual name.

Remember: Credit card companies aren’t bound by your divorce agreement. If you have a joint credit card and your ex-spouse fails to make debt payments as agreed in your divorce, the credit card company can still demand payment from you if you are the primary cardholder or if it is a joint card.

What Happens to Secured Debts in a Divorce?

Secured debts like mortgages and car loans present unique challenges during divorce because they’re tied to specific assets. Both the debt and the asset must be dealt with together. Even if one spouse keeps the asset, both remain responsible for the loan until it’s refinanced. The lender can seize the asset if mortgage or loan payments aren’t made, regardless of who’s living there.

If you transfer secured assets in a divorce, try to remove your name from any secured loans for assets your ex-spouse is keeping. Get the asset refinanced in one name only if possible. If you can’t refinance, consider selling the asset and splitting the proceeds.

Remember: Until a secured loan is refinanced or paid off, both spouses remain legally responsible for the debt – even if your divorce agreement says otherwise. Missing payments could result in asset seizure.

What Happens to Tax Debt in a Divorce?

Tax debt in divorce can be complicated when more than simple employment income is involved. Generally, you’re not responsible for your spouse’s personal tax debt to the Canada Revenue Agency (CRA), even during marriage or divorce. However, there are important exceptions you need to understand.

• Be cautious when transferring assets during separation. Under Section 160 of Canada’s Income Tax Act, if your spouse transfers property to you at less than fair market value to avoid paying taxes, the CRA can hold you responsible for their tax debt.
• If you own property jointly with a spouse who has tax debt, the CRA may place a lien on the property. However, this lien only affects your spouse’s share of the equity – your portion remains protected.
• Finally, while the CRA considers tax debt to be individual, family law may view it differently. If tax debt arose during your marriage from income or decisions that benefited your family – like tax deductions that reduced family tax payments or business income that supported household expenses – your divorce court might consider this a family debt to be divided between spouses. This doesn’t change your relationship with the CRA, but it could affect how the value of assets and debts are divided in your divorce settlement.

How Are Business Debts Handled?

Business debts affect divorce differently depending on how the business is structured. For sole proprietorships, business debts are considered personal debts. Corporate debts generally remain with the corporation unless you personally guarantee the loans. While you may not be liable, these debts will affect the value of the business.

Be particularly careful with personal guarantees on business loans. If you signed as a guarantor on your spouse’s business debt, you remain responsible for this debt even after divorce unless the lender agrees to remove your guarantee. This obligation continues even if you have no ownership interest in the business after divorce.

Managing Bank Accounts During Divorce

Joint bank accounts require special attention during a divorce. Even after separation, both parties have full access to joint accounts until they are closed. You’re both responsible for overdraft repayment, regardless of who spent the money.

It may be a good idea to freeze shared bank accounts to prevent unauthorized withdrawals and open new individual accounts at a different bank.

What About Debts Acquired During Separation?

Any new credit cards, loans, or lines of credit opened after separation typically remain the responsibility of the borrowing spouse.

If one spouse continues to use joint debt credit accounts after separation, you will still be responsible for any new balances. That is why all joint debts should be cancelled upon separation to ensure one spouse does not rack up balances without the other’s consent or knowledge.

Can You Remove Your Name From Debt Accounts?

If you are getting divorced with debt, you can talk to your bank before you sign the separation agreement about getting two separate loans in each of your names to pay off the old joint debt. Your bank probably won’t remove your name from the account if there is an existing balance. They will want to be sure they can collect despite your divorce. If you have good credit, you can each borrow your share to pay off the full balance.  Once the old accounts have been paid off and balances transferred, close the pre-divorce credit accounts.

Managing Joint Accounts During Divorce

Good debt management practices are important before, during and after divorce. Take these steps to protect your personal finances during divorce:

1. Make a list of every joint account, credit card, and loan
2. Consider freezing or closing joint credit cards
3. Consider refinancing secured loans if the assets are transferred to one spouse
4. Set up bank accounts and apply for new credit in your name only
5. Monitor your credit report regularly
6. Keep detailed records of all account activity
7. Notify creditors of your separation in writing, change your address
8. Ask about options to remove your name from joint accounts

Remember: Your credit score doesn’t care about your divorce agreement. Late payments or defaults will affect both parties on joint accounts. If your ex-spouse stops paying debts they agreed to pay, you may need to make the payments yourself to protect your credit rating and seek reimbursement through family court.

Bankruptcy and Divorce

Bankruptcy and divorce add another layer of complexity to an already challenging financial situation. If your ex-spouse files for bankruptcy, any joint debts you share become your full responsibility.

The timing of bankruptcy versus divorce matters significantly. Filing for bankruptcy before finalizing your divorce can impact how assets are divided and which debts remain. Conversely, if your divorce agreement is already in place when your ex-spouse files for bankruptcy, you might find yourself responsible for joint debts that were originally assigned to them.

It is also important to know that support payments, including child support and alimony, cannot be discharged by a bankruptcy or consumer proposal.

What To Do When Divorce Causes Debt Problems

If your financial situation makes debt repayment difficult, you may need to explore debt relief options like consolidation, a consumer proposal or bankruptcy. Given these complexities, it’s crucial to speak with a Licensed Insolvency Trustee before finalizing your divorce.

Debt problems during divorce can feel overwhelming, but you don’t have to face them alone. At Hoyes Michalos, our Licensed Insolvency Trustees can help you understand your options and make informed decisions about your financial future. Contact us today for a free consultation to discuss your situation and learn about solutions that could work for you.

The post What Happens to Debt When You Divorce? appeared first on Hoyes, Michalos & Associates Inc..

Let’s be honest, no one likes paying income tax. And you definitely don’t want to pay more than your fair share – but many people do. Taking advantage of income tax deductions is one of the best tax-saving strategies that you should know about to lower your tax bill every year.

Here’s how you can do that.

Do You Even Know What a Tax Write-off Is?

Tax deductions reduce your taxable income. Less income means lower taxes. Seems simple, right?

Deductions don’t mean you’ll get a dollar-for-dollar reduction in your taxes. A $100 tax deduction means that you’ll pay taxes on $100 less income, not that your tax bill will be $100 less. But it still lowers your taxes, and that’s a win.

Everyone who files an individual income tax return gets at least one deduction—the standard deduction—but many people have more deductions than that. 

Different types of deductions have different effects on your overall tax bill, and knowing the differences between these types of deductions can help you prioritize those that will deliver a bigger tax-saving impact.

Above-the-Line Deductions: What They Are and How to Use Them

The most valuable income tax deductions are above-the-line deductions, meaning they reduce your income before the calculation for Adjusted Gross Income (AGI). 

That’s why they’re called “above-the-line”: They appear on your tax return above the line for adjusted gross income. 

Since many other tax deductions and credits are limited by AGI, using these special deductions to lower AGI may help you gain eligibility for other lucrative tax-saving measures. 

Some examples of these above-the-line deductions are:

• Student loan interest: Taxpayers with qualified student loans may be able to deduct the interest paid on those loans, up to $2,500 per year. The IRS has a tool for this called “Can I claim a deduction for student loan interest?” on www.irs.gov.
• Retirement contributions: If you contributed to a traditional IRA, you can deduct that as an above-the-line income tax deduction. This deduction might be limited if you (or your spouse, if filing jointly) have access to a workplace retirement plan and your income exceeds the IRS limits.
• Educator expenses: Educators can deduct up to $300 ($600 if married filing jointly and both are teachers) of the money you paid out of pocket for classroom supplies or similar expenses. This deduction is available for K-12 teachers, counselors, and principals who work at least nine hundred hours during the school year. Qualifying expenses include things like books, software, equipment, and professional development courses.
• Self-employed health insurance: If you’re self-employed and pay for your own health insurance, you may be able to deduct the full year’s premiums with this income tax deduction. You can’t take it if you had access to an employer-based plan (including through your spouse). But if you had no other option and paid your own health premiums, you can deduct your medical, dental, and vision insurance and possibly long-term care premiums.
• Half of self-employment tax: Self-employed taxpayers get hit with the 15.3% self-employment tax, and half of that can be taken as an above-the-line deduction. If you file Schedule SE (the form that calculates and reports any self-employment taxes due) with your tax return, you’ll be able to deduct 50% of the calculated tax here, with no restrictions based on income or outside factors. 

You can claim above-the-line deductions along with your standard or itemized deductions.

The Standard Deduction – What It Is and Why You Want To Use It

If you’ve ever done your own taxes, you probably know about the standard deduction. It reduces adjusted gross income by a specific amount set by the IRS so that every household will have at least some income that’s not subject to federal income taxes—no questions asked. 

The amount of the standard deduction depends on your filing status (like single or head of household), age, dependency status, and whether or not you’re blind. The deduction gets subtracted from your AGI to get to your taxable income.

For tax year 2024, the tax return you’ll file in 2025, the standard deductions based on filing status are:

Single taxpayers who are over sixty-five or blind get additional standard deductions including an extra $1,950 standard deduction, and an extra $3,900 if they’re over sixty-five and blind. Married taxpayers who are over sixty-five or blind get an extra $1,550 standard deduction each, and an extra $3,100 each if they’re over sixty-five and blind.

Dependents—meaning people who are claimed as dependents on someone else’s tax return—get a reduced standard deduction. The reduced deduction is either a flat $1,300 or their earned income (such as from a job) plus $450, up to the amount of the regular standard deduction.

In some cases, a taxpayer may not be allowed to take the standard deduction. The most common situation is for those who are married filing separately, where if one spouse itemizes, they both must itemize. 

Itemized Deductions: These Things Can Add Up 

Unlike the standard deduction, which is the same for everyone, itemized deductions vary greatly by each taxpayer’s personal situation.

These itemized deductions capture expenses paid for during the year that can be used to reduce taxable income and taxes owed. They get listed—itemized—on Schedule A and filed along with your Form 1040. 

Depending on the expenses you have each year, itemizing deductions can add up to quite a bit of savings on your final tax bill. 

You can choose to take itemized deductions in any tax year that would give you a bigger tax break than using the standard deduction. Plus, you can switch back and forth from year to year.

As of 2024, the most commonly taken or “big five” itemized deductions are: 

• Unreimbursed medical expenses in excess of 7.5% of AGI
• State and local taxes (SALT) up to $10,000 
• Charitable donations up to 60% of AGI 
• Interest on mortgage loans (up to $750,000 used to buy, build, or substantially improve your home)
• Unreimbursed casualty and theft losses from federally declared disasters that exceed 10% of your AGI

There are some other allowable itemized deductions that may apply in certain situations. 

For example, you can deduct gambling losses to the extent of gambling winnings included in your income. And people with disabilities can deduct impairment-related work expenses.

There are additional rules for all of the itemized deductions and details on what can and can’t be included in each category, and what records are required by the IRS (in case you get audited). 

You can find full details in the instructions for Schedule A on the IRS website at www.irs.gov.

Little Known Deductible Medical Expenses

Along with payments for doctors, dentists, and prescriptions, a lot of other eligible expenses qualify for a medical expenses deduction. 

They include:

• Glasses or contacts
• Purchase, training and maintenance of service animals
• Mileage for going to appointments
• Travel and transportation costs related to medical appointments and procedures
• Acupuncture
• Chiropractors

Make sure to include everything you can to get the most out of this deduction, especially in years you know you’ll have extra medical expenses (like the year you have a baby, for example, or have a surgery scheduled). 

Understanding Your Taxes Saves You Money

Taxes are inevitable. But you can use these income tax deductions to legitimately have a lower tax bill and keep more of your hard-earned cash every year.

I explain how you can use more tax-saving strategies, as well as how the tax system works and how it relates to your overall financial state in my latest book, Taxes 101. 

I show you how different tax laws apply to you and how they can lead to deductions and credits that will reduce your tax bill. I also show you how to use information about the tax system to make better choices for your overall financial wellness.

Click on the button below to learn more about Taxes 101 and get your copy now.

The post How Income Tax Deductions Can Save You Money This Year appeared first on Michele Cagan, CPA.

Debt can feel like a heavy burden, but finding the right debt relief partner can make all the difference. Turnbull Law Group is one such option, specializing in debt negotiation and settlement. Are they the right fit for you? This article delves into the company’s services, processes, and customer reviews to provide you with all […]

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The most common new year’s resolutions are to save money and lose weight. I can’t help with the second, but I can help you have a low spend year and save money in 2025! What is a Low Spend Year? It’s pretty much all there in the title: a year focused on decreasing your discretionary […]

The post How to Have a Low Spend Year in 2025 appeared first on Bravely Go.

Several years ago, I made a “killer” Black Friday score. I’d been eyeing a sleek set of headphones, and after … Read more

These cheap and healthy crockpot recipes make it easy to create super inexpensive meals the whole family will love. With options for slow cooker bulk meals and quick kid-friendly weeknight dinners, you’ll find plenty of ideas for busy nights. Each recipe is a cheap meal to feed a large family, including some that even double as crockpot meals kids can make themselves. Perfect as a recipe when you have guests or for cheap meals kids love, these dishes bring flavor without breaking the budget.

Budget Friendly Dump & Go Healthy Crockpot Recipes

These budget-friendly dump-and-go crockpot recipes make healthy eating easy, with options that even picky eaters will enjoy. From low carb meals for picky eaters to quick dinners for 2 or more, each dish is designed to be both affordable and delicious. Perfect for lazy weekend meals and yummy fall crockpot meals, these unique slow cooker recipes bring cozy flavors without the hassle.

Frugal & Healthy Crockpot Soup Recipes

These frugal and healthy crockpot soup recipes offer nutritious slow cooker meals that fit perfectly into any budget. With options ranging from comfort food crockpot recipes to dinner party must-haves, these soups make cheap dinners at home both delicious and filling. Each recipe is an easy dinner recipe for family gatherings, giving you budget-friendly dinner meals everyone will enjoy.

Dirt Cheap High Protein Crockpot Recipes

These dirt cheap high-protein crockpot recipes make it easy to enjoy lean protein meals without breaking the bank. Whether you’re looking for healthy recipes on a budget or slow cooker meals for diabetics, these dishes fit the bill with flavor and nutrition. Perfect for easy dinner party recipes or inexpensive meals for a group, these crockpot recipes for dinner ensure everyone is satisfied while staying within budget.

Healthy Crockpot Chicken Recipes that are Inexpensive

These healthy crockpot chicken recipes are perfect for busy families looking for inexpensive meal ideas. From slow cooker meals for family dinners to low carb dinners for the week, these dishes are both affordable and delicious. With easy lazy dump meals and budget meals with leftovers, including crockpot recipes kids love, these chicken recipes will help you save time and money without sacrificing flavor.

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