Has your personal finance software been getting you down? Do you feel it’s time for a change? Your life is full of financial tasks and not enough time to do them. Choosing the right software will put you on the right track to accomplishing your goals.
What is the Best Personal Finance Software?
Given the myriad of options available on the market today, it can be difficult to choose the best personal finance software. Modern technology has given us personal finance software that is designed to help us manage our money better and stay on top of our finances.
Before, people used to wait for their bank account statements or visit the local branch of their bank to manage their finances. In this digital age, managing our money and investing for the future are becoming more efficient, thanks to technological advancements. Nowadays, we rely heavily on our smartphones and laptops to see where our money is going and how much are we saving for the future. Bill payments can also be made with just a few clicks.
Examples of Personal Finance Software
To help you decide, here’s a list of the best personal finance software solutions that can help you grow your savings and control your spending.
#1 Quicken Premier
People who are into personal accounting should be familiar with a desktop tool called Quicken. Its Premier edition is ideal for managing not only personal finances but also investments and business accounts. It enables you to link transactions between your accounts, which means that transferring funds from one account to another is easy. The software also offers tools for budgeting that will help you spend wisely and save at the same time.
#2 Personal Capital
If you want to use only one platform to manage all your financial accounts, you may want to consider Personal Capital. You can use the software for your bank accounts, mortgage, and credit cards, as well as your investment accounts. It enables you to keep track of your assets and savings. It also offers advice based on your goals and current financial situation.
#3 YNAB
You Need A Budget or YNAB is a personal finance software program that allows you to control spending, stick to a financial plan, and manage your overall monthly budget. It helps improve your financial literacy and develop better saving and spending habits. It also provides tutorials on more challenging financial topics.
#4 Mvelopes
If you’re used to putting cash in envelopes to manage your budget, you can do the same thing, only in a digital manner, with Mvelopes. This personal finance software takes the same budgeting approach, wherein you will split your funds into different digital envelopes dedicated for specific purposes such as savings, phone bills, groceries, mortgage, etc. If there’s still cash left in an envelope, it will stay there, giving you the freedom to spend it on something else or keep it until the next pay period.
#5 Mint
Another popular tool for budgeting is Mint. The Mint personal finance software analyzes your spending habits and identifies areas where you can cut costs to improve your finances. Mint also helps you pay your bills on time, as it enables you to set up alerts for due dates. With its budget categories, the application provides real-time information on how much you can spend on certain items.
#6 Money Dashboard
One of the best personal finance software solutions available is Money Dashboard. It gives you a clearer picture of your spending through a pie chart that shows how much you spend on transportation, food, utilities, etc. It also offers an at-a-glance overall balance that tells you the amount of money available all your accounts. You will be able to compare it with last month’s figure, enabling you to see how well you’re managing your finances.
#7 FutureAdvisor
If you’re a DIY investor and looking for personal finance software dedicated to investing, consider FutureAdvisor. It provides customized recommendations on how to diversify your portfolio. Ever heard of a robo-adviser? It is an automated investment advisor that helps you manage your portfolio based on algorithms. If you want to try it, FutureAdvisor comes with a paid robo-adviser version for more comprehensive portfolio management.
Best Budgeting Apps
We’ve compared 15 budgeting apps to find some of the best mobile apps available for managing budgets, savings and expenses. For the purposes of this list, Forbes Advisor focused on apps that are available to U.S. consumers. The eight apps shown on this list offer a variety of useful features and tools that can meet varied personal finance and money management needs.
App details are accurate as of Oct. 31, 2021.
BEST FOR INVESTORS
Personal Capital
4.5
Cost
Free
Time Period for Free Version
Unlimited
Number of Ratings
50,100+
Learn MoreOn Personalcapital.com’s Secure WebsiteWhy We Picked ItPros & Cons
BEST FOR MONITORING DAILY ACTIVITY
Mint
4.4
Cost
Free
Time Period for Free Version
Unlimited
Number of Ratings
899,800+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR ACHIEVING FINANCIAL GOALS
YNAB (You Need A Budget)
4.2
Cost
After free trial, $11.99/month or $84/year
Time Period for Free Version
34 days
Number of Ratings
43,800+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR TRACKING SPENDING
PocketGuard
4.1
Cost
Free version; Plus is $7.99/month, $79.99/year or $99.99/lifetime
Time Period for Free Version
Unlimited
Number of Ratings
8,100+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR BUDGETING USING ENVELOPES
Goodbudget
4.1
Cost
Free version; Plus is $7/month or $60/year
Time Period for Free Version
Unlimited
Number of Ratings
31,500+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR GETTING STARTED WITH INVESTING
Stash
3.8
Cost
$1, $3 or $9/month
Time Period for Free Version
N/A
Number of Ratings
337,600+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR COUPLES
Honeydue
3.7
Cost
Free
Time Period for Free Version
Unlimited
Number of Ratings
8,600+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
BEST FOR PASSIVE SAVING AND INVESTING
Digit
3.6
Cost
After free trial, $5/month
Time Period for Free Version
30 days
Number of Ratings
299,500+
Learn MoreRead Our Full ReviewWhy We Picked ItPros & Cons
How to Choose a Budgeting App
Choosing a budgeting app can seem like a small decision when compared to other personal finance decisions. But the right budgeting app can make a large difference in your personal financial life.
When selecting a budgeting app, be sure to consider what your needs and goals are first. The right budgeting app can provide you helpful insights and data into your expenses and savings. But before that happens, identifying what your financial goals are first can help you curtail your search for the right budgeting app for you.
Outside of your goals, here are a few features to consider before you commit yourself to a budgeting app:
- Fees. Budgeting apps differ in their costs. Many budgeting apps are free—or offer free versions—while some charge a monthly fee. While it may be tempting to choose a free app, don’t overlook the paid apps. If a budgeting app can significantly improve your financial outlook, it may very well be worth the investment.
- Features. Each app has unique features and benefits, so it may be worth testing a few different apps to see which one fits your needs best. If you’ve used a mobile banking app, you have a head start on the features you’ll be seeking. Typical features in the leading budgeting apps include: connecting all your financial accounts, receiving notifications of upcoming bill payments, designing a budget, credit score tracking, tracking spending, setting up financial goals and more.
- Security. The security of your personal information is extremely important, especially around banking data and logins. While most budgeting apps have some level of security, some are more sophisticated than others. Be sure to look into the level of security encryption of each app. On their websites, you may find security features such as 256-bit encryption and multi-factor authentication. Along with using a safe Wi-Fi network, security features like this will help deter any intruders from accessing your information.
- Customer service. If you run into an issue when using a budgeting app, having a technical team you can reach out to can be helpful. When selecting a budgeting app, be sure to find out what different customer service options are available, both from the app and from the desktop version, if applicable. It also may help to read reviews of others’ experiences with the app you’re considering.
Summary of Best Budgeting Apps 2021
| Budgeting App | Best For |
|---|---|
| Personal Capital | Investors |
| Mint | Monitoring Daily Activity |
| YNAB (You Need A Budget) | Achieving Financial Goals |
| PocketGuard | Tracking Spending |
| Goodbudget | Budgeting Using Envelopes |
| Stash | Getting Started With Investing |
| Honeydue | Couples |
| Digit | Passive Saving and Investing |
Methodology
To create this list, Forbes Advisor analyzed 15 budgeting apps. We ranked each budgeting app on 18 data points within the categories of consumer ratings, costs associated with the app, security and encryption of consumers’ data, desktop availability and the ability to share the app with someone else.
The following is the weighting assigned to each category:
- Mobile app rating (App Store and Google Play): 35%
- Cost: 25%
- Encryption/Security: 15%
- Account integration capabilities: 10%
- Website version available: 10%
- Ability to share: 5%
Budgeting apps with a higher overall rating relative to its number of reviews ranked higher on our list, as did those that are completely free. We also prioritized mobile apps with advanced security features, like biometric authentication, multifactor authentication and encryption. Apps that allow the ability to connect an unlimited number of accounts moved toward the top of our list, as did apps that also have a website version and allow for sharing with family or friends.
Conclusion
Everyone needs to keep track of their personal finances these days. Whether you’re excited about this is yet to be seen. However, the fact remains that personal finance software will save you time and teach you how to stay financially healthy.