Budgeting Apps Are Getting Smarter. Here’s How to Find One You’ll Actually Use
Budgeting doesn’t look like old-school pen and paper anymore — unless, of course, that’s your thing.
Today’s money tools are more sophisticated, offering real-time insights, automated tracking and cash-flow projections to help you stay on top of your financial goals. Many sync directly with your bank accounts, categorizing purchases automatically and nudging you when you’re drifting off course from your savings goals.
After Intuit shuttered its popular budgeting app Mint last year, millions of people have been rethinking what they actually want from a money management app. With so many options available, the challenge isn’t finding a budgeting app, it’s choosing one that fits how you actually manage your money.
Know your money personality
Choosing an app that matches your lifestyle makes budgeting much more manageable. Some budgeting tools are built for people who like to micromanage every dollar, and others are better suited for a hands-off, “set it and forget it” approach.
If you want to stay closely involved to every dollar and don’t mind checking in regularly, a zero-based system may appeal to you. Apps like YNAB (You Need a Budget) focus on helping users work with the money they have, and create a realistic plan that, ideally, creates a greater sense of control over their spending. If you prefer a more automated view of your finances, Quicken Simplifi and Quicken Business & Personal can give you a comprehensive overview of your savings, investments and cash flow without the need for daily upkeep.
Understanding what you need from a budgeting tool is the first step toward finding one you’ll actually use. Pick the wrong app, and it’ll become yet another abandoned chore (like the spreadsheet you swore you’d keep up with this time last year).
Features to look for in a budgeting app
Modern budgeting apps vary widely in features, pricing and the amount of manual effort required. Once you identify what features matter the most to you, it’s easier to narrow down your options.
Here are a few things to look for:
Real-time tracking
A strong budgeting app will track and categorize your transactions, and give you a real-time snapshot of where your money is going. The most useful tools go beyond simple summaries, analyzing spending patterns and flagging potential issues before they become problems.
In practice, that might mean noticing a spike in discretionary spending early in the month and giving you a heads up before it throws off the rest of your budget. Some apps (like Quicken) offer "Watchlists" that let you track spending in specific categories you're trying to rein in.
Auto-categorization
You'll also want to look for apps that break down your spending into clear, customizable categories: dining, transportation, travel, subscriptions and so on. If a category isn’t already there, you should be able to add it manually.
Goal-setting
Whether you’re paying down debt, saving for a vacation trip or chipping away at a down payment on a home, goal-setting features will help keep you motivated (and accountable).
Cash flow forecasting
Cash flow forecasting tools show how your money is likely to move over time based on projected income and expenses, often up to a year in advance. This makes it easier to plan proactively and avoid any surprises.
Subscription tracking
Subscription costs are still on the rise. Tools that automatically track recurring charges can help you decide what's worth keeping and what's worth letting go.
Rocket Money, for its part, offers a bill negotiation feature that can help users lower certain monthly costs, typically in exchange for a portion of the savings.
Test-drive a budgeting app before you commit
The smarter budgeting apps become, the less time you have to spend tracking every dollar. Still, finding the “best” one ultimately comes down to how seamlessly it fits into your lifestyle, and the best way to gauge that fit is through hands-on experience.
Take advantage of free trials and money-back guarantees when possible. Test-driving an app gives you a sense of how it fits into your daily routine, how intuitive the interface feels and which features you’re likely to use before committing financially.
Be it budgeting, tracking, or planning, Quicken Simplifi is the way to go
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