Photo byJan Baker/Dalle

Two things are for certain. The first is that budgeting is important no matter how much money you make. The second is that, as a country, we are saddled with more debt than ever before. Financial stress is one of the most prevalent stressors people face today. If this is the case for you, it means your finances are out of control. The first step to controlling your finances is a budget.

Why is a Budget Important?

A budget shows you the amount of money you have coming in versus the amount going out. It also allows you to see where your money is going. Chances are you already know in your head how much money you make monthly and how much your bills are. What many people really do not pay attention to is where their money is going. That five-dollar coffee three times a week or picking up extras because "it is just a few dollars" here and there really adds up. A budget helps you watch your money more closely, dictate where it goes, and, most importantly, live within your means.

Do You Need a Budgeting App?

Technically, the answer is no. You can spend hours a week or month manually managing your budget on spreadsheets, but who has time for that? I sure don't, and I bet you don't either! The right budgeting app is worth its weight in gold.

What's So Great About a Budgeting App?

A budgeting app makes it easier to manage your money by automating certain processes, providing insightful reports, and giving you a clearer picture of your finances. My favorite part is that my budget is on my phone with me everywhere I go, ensuring I do not overspend. Now, you may say, "I don't want to waste money on a budgeting app when I can do it for free." Yes, any app worth anything is going to cost you between $80 and $100 per year. I felt the same way as you, but trust me, it is worth it!

Top 3 Budgeting App Recommendations

With so many finance apps available, it's hard to know which one is right for you. While I can't answer that specifically, I can give you my top 3.

1. YNAB - Standing for YOU NEED A BUDGET, YNAB is the budgeting app I use. I like that you can break down your expenses into custom categories and set how often they need to be paid. You can even set up savings accounts. This is great if you have a house or vacation fund. What I like most is that you assign your money to the categories you have set up. Think of it as digital envelopes that you are putting your money into. Linking your account means that YNAB automatically detects when money has been deposited and asks you to assign it. It also knows when money has been debited, and you ensure it is taken out of the right category.

2. Mint - This app is probably well-known to most people. It was developed by Intuit, the makers of TurboTax, creditkarma, QuickBooks, and Mailchimp. Mint gives you a full overview of your finances, including budgets, investments, savings, and credit scores. Mint doesn't quite allow you to break things down like YNAB does, but overall is still a great app to get you started on your budget.

3. Every Dollar - Developed by Ramsey, Every Dollar works very similarly to YNAB. It allows you to tell your money where to go and helps you create a budget to live within your means. Of course, you can also change your budget when needed, which is extremely helpful for those who have fluctuating incomes.

Take Control of Your Finances

Rule your finances, don't let them rule you. If you haven't already or don't have a good system, start with creating a viable budget. Look into budgeting apps that can save you time and give you more tools to work with to make your money smarter.

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