How can you possibly choose a budgeting app? There are so many options out there! You’re getting a case of choice paralysis just looking at them all.
It’s best to pick a budgeting app that suits your needs. Take a look at these options below and see if they inspire you.
Do You Want to Pay Down or Prevent Debts?
You have a storm cloud of debt floating above you; you want to eliminate it. The best type of budgeting app for this problem will use zero-based budgeting. The zero-based budgeting technique requires users to allocate every single dollar of their income to a specific expense, leaving them with $0 uncategorized and unclaimed. After the essential expenses like groceries and utility bills are accounted for, you can use the leftover funds for your debt repayments.
YNAB (You Need a Budget) and EveryDollar are popular apps that use zero-based budgeting.
Preventing Debt
You can also use a zero-based budgeting app to prevent debt. If you don’t have a lot of debt repayments to consider, then you should use your leftover funds to build a substantial emergency fund. An emergency fund is a safety net that you can rely on when an urgent, unplanned expense shows up.
Without an emergency fund, you might not have enough savings to handle a surprise expense immediately. And you might have to consider borrowing money through an emergency personal loan to resolve the problem. For instance, you might apply for a quick personal loan and use the temporary funds to pay off the expense as soon as possible.
Personal loans need to be repaid. So, you will want to use your zero-based budgeting app to help you manage your loan repayment plan and build your emergency fund simultaneously. Learn more about how to manage your personal loans to ensure your outstanding debts are completely under control. The extra tips could help.
Do You Want to Try Envelope Budgeting?
Envelope budgeting is an old-fashioned financial strategy where you divide up your spending money into separate envelopes. Every envelope has its category, like groceries, entertainment, and gas. Once the cash in the envelope is gone, you must stop spending for that category until the next payday, when the envelope fills up again. The strategy is supposed to stop you from overspending so that you live within your means.
Envelope budgeting may not seem like a very effective budgeting method in this modern world. Your transactions will be made with bank cards, credit cards, checks, or money transfers — not cash. So, divvying up your income into cash-filled envelopes may seem strange. But with a budgeting app, you can apply this strategy to your digital spending.
Goodbudget (formerly called Easy Envelope Budget Aid) and Mvelopes are popular apps that use the envelope budgeting method.
Do You Need to Share a Budget?
You don’t need to set up a personal budget. You’re in a relationship where you share everything, including expenses. A shared budget will make tracking all of these expenses and your pooled income much easier. It can also help you tackle shared savings goals, like home renovations or summer vacations.
Money can be a huge source of conflict in relationships. Creating a budget that both members can see and contribute to should minimize that conflict. Financial discussions should be mundane and easy to resolve. They shouldn’t lead to yelling matches and hurt feelings.
One popular budgeting app that’s designed for couples is HoneyDue.
Have you found a type of budget that fits your needs? Then, it’s time to download that app and get started.
