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The envelope budgeting system has been around for a long time, and for good reason. It is a simple and easy way to control personal finances. However, since most people use cards and virtual payments, cash envelopes are no longer practical. Luckily, these envelope budgeting apps can help you achieve the same results without forcing you to carry dollar bills around.
FYI: if you’re just looking for some easy budgeting, check out our review of Ivy Wallet App.
Content
- 1. Goodbudget
- 2. RealBudget
- 3. Pocketguard
- 4. YNAB
- Conclusion
1. Goodbudget
Price: Free with premium option
Goodbudget uses the principles of the envelope method but eliminates the physical envelopes. Instead of using cash, Goodbudget allows users to link their bank accounts to the app. They can then create digital envelopes and allocate money from their bank account into these “envelopes” to categorize their expenses. It makes it easier to track spending and keep tabs on available funds.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (2) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (2)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-goodbudgets-spending-800x400.jpg)
The Goodbudget app has default envelopes for common expenses like rent and groceries that users can move money into. In addition, users can also add custom envelopes. For example, you can set up envelopes for eating out, entertainment or saving for a vacation. In addition to being available on both iOS and Android devices, users can also use the Goodbudget website to maintain and edit their budgets. Goodbudget also allows users to sync accounts to maintain household budgets, ensuring that everyone is on the same page.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (3) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (3)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-goodbudgets-Income-vs-Spending-800x400.jpg)
The Goodbudget app is available in both free and subscription-based versions. The free version allows users to configure up to ten envelopes while supporting only two devices. Subscribing allows users to create as many envelopes as they wish, with support for up to five devices.
2. RealBudget
Price: Free with premium option
If the idea of linking a bank account to a third-party app turns you off, RealBudget is for you. RealBudget is a simple and easy-to-use envelope-budgeting app. The app allows users to create an unlimited number of envelopes for various expenses. Users can allocate certain dollar amounts to each envelope. There is no need to link your bank or any other financial accounts. Best of all, the app is completely free to use, and there are zero ads!
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (4) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (4)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-realbudget-spending-800x400.jpg)
While the base app is entirely free to use, it is limited to a single device. This can be problematic for households that want to track spending by multiple users. RealBudget offers a premium version of the app that commands a monthly subscription fee. For a monthly fee, users can sync transactions with family members on multiple devices.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (5) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (5)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-realbudget-device-sync-800x400.jpg)
The downside to not being able to link your financial accounts is that you will have to manually log all of your expenditures. If you have a tendency to impulse buy, this can be problematic. If you forget to enter an expenditure, it will throw off the balance of your envelopes. If you are dedicated and don’t mind being more proactive, RealBudget is a simple and easy way to take control of your spending habits.
3. Pocketguard
Price: Free with premium option
Pocketguard is another app that takes the pain out of budgeting by simplifying the process. Users connect bank accounts, credit cards and other financial instruments. Subsequently, users input their monthly expenses, such as rent and utilities. Pocketguard works its magic and allocates your available funds to your bills. In essence, Pocketguard automatically sorts available cash to “envelopes” earmarked for particular expenditures, then calculates how much money you have left over each month for discretionary spending.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (6) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (6)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-pocketguard-mobile-app-800x400.jpg)
Pocketguard can also be used to give users a snapshot of their overall financial health, tracking their net worth. The paid version of the app offers a debt repayment tool, as well as the ability to export your transactions to a spreadsheet.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (7) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (7)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-pocketguard-devices-800x400.jpg)
Pocketguard is a good option for folks who want a “hands off” approach to budgeting. It tracks your expenses and figures out how much users can comfortably spend without going beyond their means. However, it’s not the best tool for more proactive financial planning.
Tip: want help tracking your finances? Try these cross-platform finance tracking apps.
4. YNAB
Price: $14.99/month or $99/year
You Need a Budget, or YNAB, is an app that works on the “zero-based budgeting” method. This isn’t exactly an envelope budget; however, it works on the same principle of allocating your money to different categories. The basic principle of “zero-based” budgeting is that every dollar you have coming in is accounted for and earmarked for a particular expense, until you literally have zero dollars left to spend.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (8) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (8)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-ynab-categories-800x400.jpg)
YNAB allows users to dictate how much of their income should be allocated to various categories, such as expenses and savings. In assigning every single dollar you earn, the idea is that users will become more proactive with their money. Unfortunately, this means that users need to be, pardon the pun, invested in their long-term financial health, as the app requires users to be more hands-on than others. That said, YNAB is more of a spending planner, rather than a spending tracker.
![4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (9) 4 of the Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow - Make Tech Easier (9)](https://i0.wp.com/www.maketecheasier.com/assets/uploads/2023/10/envelope-budget-app-ynab-spending-trends-800x400.jpg)
Thankfully, the YNAB website hosts a number of support videos and articles. These can help users develop habits that will ensure they are getting the most out of YNAB’s money management tools. Considering YNAB charges a fairly hefty sum, users should think twice if they want to invest the time and effort. If not, YNAB is just another way to throw money down the drain.
Conclusion
The apps listed above utilize a tried and tested method of money management, albeit refined for the modern era. However, if the idea of downloading an app or syncing your financial accounts to a third party isn’t for you, there are other methods of taking control of your finances. You can use Microsoft Excel to set up a zero-budgeting system, or use a budgeting template in Google Sheets.
Image credit: Pexels
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Ryan Lynch - Staff Writer
Ryan is an English & Film Studies teacher. He splits his time between Australia and the United States. He passes the time on long haul flights by playing retro video games from his youth.
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Insights, advice, suggestions, feedback and comments from experts
Introduction
As an expert in personal finance and budgeting, I can provide you with information about the concepts mentioned in this article. I have extensive knowledge and experience in this field, and I can help you understand the envelope budgeting system and the budgeting apps mentioned in the article.
Envelope Budgeting System
The envelope budgeting system is a method of managing personal finances by allocating money into different categories or "envelopes" for various expenses. It helps individuals track their spending and ensure that they stay within their budget for each category. Traditionally, this method involved using physical envelopes to hold cash for different expenses.
Transition to Digital Envelope Budgeting Apps
With the rise of digital payments and the decreasing use of cash, carrying physical envelopes is no longer practical for many people. However, there are now several envelope budgeting apps available that provide a digital alternative to the traditional method. These apps allow users to link their bank accounts, create digital envelopes, and allocate money to each envelope for categorizing expenses.
Budgeting Apps Mentioned in the Article
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Goodbudget: Goodbudget is an app that follows the principles of the envelope method but eliminates the need for physical envelopes. Users can link their bank accounts to the app and create digital envelopes for different expenses. The app provides default envelopes for common expenses and allows users to add custom envelopes. Goodbudget is available for both Android and iOS devices, and users can also access it through the Goodbudget website. The app offers a free version with limited features and a subscription-based version with additional benefits.
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RealBudget: RealBudget is a simple and easy-to-use envelope-budgeting app. It allows users to create unlimited envelopes for various expenses without the need to link their bank accounts. Users can allocate specific amounts to each envelope manually. The app is free to use and does not contain any ads. However, the free version is limited to a single device. RealBudget also offers a premium version with a monthly subscription fee, which allows users to sync transactions with family members on multiple devices.
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Pocketguard: Pocketguard is another app that simplifies the budgeting process by connecting users' bank accounts, credit cards, and other financial instruments. Users input their monthly expenses, and the app automatically allocates available funds to different envelopes earmarked for specific expenditures. Pocketguard also provides an overview of users' overall financial health and offers a paid version with additional features like a debt repayment tool and transaction export to a spreadsheet.
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YNAB (You Need a Budget): YNAB is an app that follows the "zero-based budgeting" method. It allocates every dollar of income to different categories, ensuring that users have a plan for every dollar they earn. YNAB allows users to assign specific amounts to expenses and savings categories. The app requires users to be more hands-on in managing their finances and offers support videos and articles on its website. YNAB is a paid app with a monthly or annual subscription fee.
Conclusion
The envelope budgeting system has evolved with the introduction of digital envelope budgeting apps. These apps provide a convenient and efficient way to manage personal finances, track expenses, and stay within budget. Goodbudget, RealBudget, Pocketguard, and YNAB are some of the popular apps that offer different features and pricing options to suit individual needs. Whether you prefer a free app or are willing to invest in a subscription-based app, there are options available to help you take control of your finances.
Remember, it's important to choose a budgeting app that aligns with your financial goals and preferences. Consider the features, pricing, and user reviews before making a decision.