Who uses a budgeting / money management app and which one would you recommend?

[expandabandband]

If indeed you would recommend it at all...

For very obvious reasons, we need to keep a firm eye on our spending and so I'd like to start using a budgeting app and would love any recommendations or thoughts you have.

Would also be useful to know if you recommend a bank account too - we are currently with Smile who don't seem to be compatible with any of the apps, so I may well have to change banks to get this done.

I use YNAB.

YNAB here. Any bank that allows exports. Barclays allow direct import, which is useful.

YNAB (legacy version but when it stops working I'll go back to the newer one)

Is it really worth approx £87 pa? I keep hearing about how good it is but it just seems like a lot of money.

I think it is. Although the concept is simple, and you could run an envelope budgeting style spreadsheet, YNAB makes it easy. Especially now that our transactions import automatically. There is seamless integration between DH's phone, my phone, my laptop, etc., so that we are both seeing 'real-time' budgeting.

I don't use YNAB as it's fully intended. I can't quite let go of multiple accounts. In theory, one bank account is sufficient because the categories compartmentalise your money within it. I still like to physically move money about, so that it isn't in my main account to be spent. But even then, it's easy to achieve in YNAB. I just set a category called 'savings account' (and subcategories within it) & make sure that the amount assigned to that category matches the balance in the account.

YNAB offer a 34 day free trial, so you can try it out without committing.

Goodbudget! goodbudget.com/

Good Budget

I use YNAB (although I should note I'm still on YNAB4, which cost me £13 one off about 10 years ago, but when it dies I will absolutely pay for a subscription) - it has revolutionised my life. I went from nearly £2k debt from an old student overdraft, in my overdraft every month on my current account to being debt free and saving a flat deposit (by myself, no family money etc) and now to having bought a house all by myself.

It's life changing and I would recommend it to anyone.

YNAB - it’s not just a budgeting app, it’s a completely new way of thinking about money. Quite honestly changed my life.

Please can someone explain how ynab is life changing? I really want to get out of debt & but my own home (feels like mission impossible) feels contradictory to spend on an app ?

You don't spend on an app, it's an envelope budgeting system which records your spending and can link to your accounts. It's got four fundamental concepts but their videos explain better than I could.
Full disclosure, I'm a chartered accountant and personal finance enthusiast and it's a bit too good, I spend too much time on it

I use a pen and paper and calculator- no need for an app that you pay for. I allocate money for bills, food and fuel as well as holidays/birthdays etc. every time I spend I write it down and keep a running calculation. Works perfectly.

You can achieve a similar end point to YNAB for free by splitting your money into different accounts or pots within the same account and only spending what is in the account.

Broadly:

An account for regular direct debits.

A savings account for annual and irregular expenses like holidays, Christmas, insurance, car maintenance and replacement, vet bills and household goods replacement expenses, that sort of thing.

A proper emergency fund for lost income.

Daily to day essential spending like groceries and transport.

A personal spending account for each adult for non essentials. Possibly one for 'family meals/days out'.

Set up standing orders to automatically move the money on payday, or do it manually if you're working with a variable income or want a bit more control, but if you only spend from the relevant account/move money as needed, you'll cover all essentials and naturally control and limit spending on non essentials, which is where budgets tend to come unstuck.

It makes you completely in control of your finances, and it focuses your mind on your spending habits.

An example: I can get out of the habit of organised food shopping. I can end up in a cycle of 'popping to the shops' because I haven't planned my shopping. That's annoying. However, because I have YNAB, I split my shopping categories by the shop I spend money in. My local Sainsbury's is around 20p per item more expensive than the Sainsbury's 5 miles away/online. Of course, any Sainsbury's is more expensive than Lidl/Aldi. Over the months, I've become more mindful about planning and I can see, through YNAB, not only the reduction in my overall grocery spend, but also the shift in my spending from more expensive shops to cheaper shops. That gives me more money to allocate to other areas of my budget.

With YNAB, I can easily see the impact of decisions on my overall budget - I'm accountable to it. If I try to spend more than I have, it points out that my spending is unfunded and asks me to correct it (perhaps the Government should have YNAB?)

Say you're saving for Christmas. You have allocated £100 per month to Christmas savings. You are invited out to lunch. Probably £20. When you look at your budget, you see that the only category that you can adjust is Christmas. It makes you think about it - Is going out for lunch worth having less to spend at Christmas?

By having a mindful budget, I can create categories for those annual costs that pop up unexpected. For example, Amazon Prime. £95 once a year is a fair whack if you're on a tight budget. £8 per month put into an 'Amazon Prime' category means that come Match, the money is sitting there, waiting to be spent on that bill. Same with MOT costs, YNAB cost, etc., and suddenly there are no nasty months.

Overall, the aim is to get to the point where you are spending last month's money this month, or even the money you earned before that, so that you aren't ever caught short.

YNAB for me too.

Beautifully explained @Lougle . I can't say the peace of mind I've gained from YNAB when an emergency hits, and there is the money in the emergency line of the budget. Or MOT or whatever.

Like previous poster it has made me mindful of what I'm spending money on and the relative priorities. Is the Edinburgh Festival really 3 times better than camping in Pembrokeshire? etc. And it helps me see the accrued benefits of hundreds of small choices - the cheaper shops, the overpaying on the mortgage, etc - and put them to things which matter to me.

Thanks @redmapleleaves1 it has completely changed the way I think about my budget. It's so flexible, too. I know that DH's car is going to need work to get it through MOT. My car needs its timing belt changed and will also need MOT. I've been squirrelling away money whenever I can into my 'DIY/car repairs' category. However, if it turns out that the costs are less than I've allocated, I can then decide where to put the spare money. By intentionally allocating money, it's less likely that it will be frittered away.

It's so easy to see the patterns, too. We get our money twice per month. Most of the direct debits come out at the beginning of the month. Using YNAB, it's obvious that we can't spend all of the money that we get half way through the month because the money we get at the beginning of the month only just covers the direct debits, so we have to hold back money for food/fuel from that. Without a close budget, we could think 'ooh we have this much and it's almost the end of the month, so we can buy x, y, z.'

My local Sainsbury's is around 20p per item more expensive than the Sainsbury's 5 miles away/online. Of course, any Sainsbury's is more expensive than Lidl/Aldi

But you know that sort of thing whether you have YNAB or not. I genuinely don't get it.

Thank you that is really helpful, I appreciate the explanation. I’m going to give the trial ago.

Me neither. You are in control of your finances whether you use an app or not. If you actually want to save money don't pay to in order to save!

Use a notebook ,keep your receipts, write down what you spend ,set up different (free) current accounts for different purposes, draw up a budget.

I’ll be honest, this is where I am too really.

I think the sticking point for me is the cost. If it was £30 per year I’d be really open to trying it.

I use spending tracker, easy to use and I have a few different pots in my bank account

And free

@NiceUnusualDifferent is that an app or website?

@BoredOfLooking it's an app. Picture of a little wallet. It takes some time to set up your recurring payments but once done it runs month the month. You can start the month whichever day you like and amend individual transactions without affecting others if you need to. I've used it for a few years