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    HomeTop Stories5 best free budgeting tools of September 2024

    5 best free budgeting tools of September 2024


    Understanding how much you earn and spend is key to getting control of your finances. Not only does creating a budget give you a greater sense of control and awareness over your money, but it can also help you reach financial milestones, such as buying your first home.

    To help you get started, CNBC Select reviewed and compared a variety of free budgeting tools and we narrowed down our best picks for just about anyone: beginners, investors and small business owners. Our selections all come at zero cost to use and have strong user reviews. (See our methodology for more information on how we choose the best free budgeting tools.)

    Best free budgeting tools

    Compare savings account offers

    Best free budgeting app for beginners

    Goodbudget

    • Cost

      Free for 20 total envelopes; $10/month (or $80/year) for unlimited envelopes

    • Standout features

      Allows couples to use the envelope system digitally for budgeting, and allows couples to track their debt

    • Categorizes your expenses

      Yes, but users must manually input transactions since the app does not sync to your bank account

    • Links to accounts

      No, users must manually input purchases and transactions

    • Availability

      Offered in both the App Store (for iOS) and on Google Play (for Android) and as a version for laptops

    • Security features

      Information is secured using bank-grade 256-bit SSL

    Pros

    • Free version of the app
    • Helps couples manage their money together, track spending and track debt
    • Ability to share budget with your partner
    • Digital envelopes help couples save for big goals that matter to them
    • Money management courses and resources available

    Cons

    • Can’t connect bank accounts so users must manually enter transactions

    Who’s this for? Goodbudget can be a great fit if you’re looking for a digital version of the envelope budgeting method.

    Standout benefits: You can divvy up your cash into different spending categories with each having its own envelope.

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    Best free budgeting app for investors

    Empower

    • Cost

      App is free, but users have option to add investment management services for 0.89% of their money (for accounts under $1 million)

    • Standout features

      A budgeting app and investment tool that tracks both your spending and your wealth

    • Categorizes your expenses

      Yes, but users can modify

    • Links to accounts

      Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans

    • Availability

      Offered in both the App Store (for iOS) and on Google Play (for Android)

    • Security features

      Data encryption, fraud protection and strong user authentication

    Pros

    • Free to use
    • Includes money-tracking dashboard, plus a net-worth tracker as well as a breakdown of your investment portfolio
    • Offers free investing tools, such as a retirement planner and an investment checkup tool
    • Syncs to your bank accounts and credit cards as well as other financial accounts
    • Offers The Currency blog for financial planning tips
    • Security features include data encryption, fraud protection and strong user authentication

    Cons

    • Budgeting features aren’t as comprehensive as other apps
    • Investment management services come with cost

    Who’s this for? Empower is ideal if you’re looking for an investment tool that tracks both your spending and wealth.

    Standout benefits: You can link various financial accounts including IRAs, 401(k)s, mortgages and loans. The Empower Budget Planner automatically categorizes your transactions.

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    Best free desktop software for small business owners

    GnuCash

    Information about GnuCash has been collected independently by Select and has not been reviewed or provided by GnuCash prior to publication.

    • Cost

    • Standout features

      Desktop software that uses double-entry accounting method to tracks users’ bank accounts, income, expenses and investments. It also offers basic accounting functionality for small businesses to manage invoicing, bill payment and payroll

    • Categorizes your expenses

    • Links to accounts

      Allows users to import their bank account information

    • Availability

      Compatible with Windows, Mac OSX, GNU/Linux, BSD and Solaris, as well as an app for Android users

    • Security features

      GnuCash is not an online, cloud-based program so no one has physical access to your data; the software runs on your computer and your data lives wherever you store it, such as on your desktop, a hard drive or Dropbox

    Pros

    • Free to use
    • Compatible with most computers
    • Good accounting option for startups and small businesses with limited budgets
    • Offers helpful data visualization of your budget with graphs and reports
    • Available in multiple languages and tracks multiple currencies
    • Website offers an extensive FAQ section for user support
    • Users can create recurring transactions and set reminders when things are due
    • Finder tool allows users to easily search for specific transactions
    • Security features include not being an online, cloud-based program

    Cons

    • Double-entry accounting method used may be more helpful for small business owners versus individuals trying to manage a budget
    • Desktop software interface looks outdated

    Who’s this for? GnuCash may appeal more to small business owners since it uses a double-entry accounting method.

    Standout benefits: GnuCash offers features geared towards small businesses like invoicing, accounts payable and accounts receivable and payroll management.

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    Best free budging app if you use VantageScore

    SoFi Relay

    • Cost

      SoFi Relay has no fees or costs for use.

    • Standout features

      SoFi Relay allows you to compile into one place information about your assets, liabilities and financial goals.

    • Categorizes your expenses

      Yes, Relay allows you to view charts that categorize credit card and debit card transactions by budgeting categories (such as groceries and utility bills).

    • Links to accounts

      Yes, Relay allows you to link accounts at external institutions to review spending, savings and budgeting across multiple accounts, and based on current month as well as historical trends

    • Availability

      Available on SoFi.com on the web or in the SoFi mobile app.

    • Security features

      User data is stored in a secure location that includes physical security, fire protection, and electronic shielding.

    Pros

    • Free to use
    • Users can create charts that categorize spending in different financial categories
    • Provides tips and insights based on your financial information
    • Allows you to compile and view financial info from multiple accounts
    • Automatically updates your connected accounts to always be up-to-date
    • Security features include both physical and electronic protections

    Cons

    • Uses the VantageScore® 3.0 credit score, not FICO
    • May lack some premium features other paid apps provide

    Who’s this for? SoFi Relay is worth considering if you prefer using the VantageScore system over the FICO for your credit score.

    Standout benefits: SoFi can track your recurring transactions to help you plan for monthly expenses.

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    Best free budgeting app for managing subscriptions

    Rocket Money

    • Cost

      Free, with the option to upgrade to Rocket Money Premium for a fee of $4 to $12 per month (with 7-day free trial). Bill negotiation costs between 30% to 60% of the 12-month savings achieved as a result of the negotiation.

    • Standout features

      Easily cancel unwanted subscriptions, track your spending and credit score, automate savings and get help lowering bills

    • Categorizes your expenses

      Yes, Rocket Money instantly identifies your top spending categories

    • Links to accounts

      Yes, bank and credit cards

    • Availability

      Offered in both the App Store (for iOS) and on Google Play (for Android), as well as online

    • Security features

      Rocket Money accesses users’ transaction data via an encrypted token, uses Plaid API so user credentials are never stored, provides bank-level 256-bit encryption and hosts servers on secure Amazon Web Services (AWS), which is used by the Department of Defense, NASA and the Financial Industry Regulatory Authority (FINRA)

    Pros

    • Negotiates cell phone and cable bills, plus helps you get refunds for some bank fees
    • Free version available
    • Syncs to your bank accounts and credit cards
    • Instantly finds and tracks your subscriptions
    • Website says 80% of people save money by using Rocket Money (formerly Truebill) to find and cancel unwanted subscriptions
    • Provides breakdown of user spending and notifies of upcoming charges and low balance alerts
    • Helps users create a budget
    • Users can see their Experian VantageScore 3.0 credit score and get access to their credit report
    • Provides an interest-free pay advance up to $100 directly to qualifying users’ checking accounts
    • Users can set goals, save money with autopilot Smart Savings feature
    • Concierge service available to identify bills to be lowered and, for a fee, Rocket Money (formerly Truebill) will negotiate on users’ behalf for the best rates (non-refundable negotiation fee is anywhere from 30% to 60% of the 12-month savings achieved as a result of the negotiation)
    • Rocket Money (formerly Truebill) Premium Service features include free access to Smart Savings feature, unlimited budgeting categories, custom spend categories, real-time account balance updates, premium chat, subscription cancellation concierge, “Truebill Offers” and educational material
    • Coming soon: Users can track their net worth
    • High Trustscore rating of 4.3/5 stars (from 392 reviews)

    Cons

    • Costs between $4 and $12 per month to upgrade to Rocket Money Premium Service
    • Non-refundable negotiation fee anywhere from 30% to 60% of the 12-month savings achieved as a result of Rocket Money’s bill negotiation on users’ behalf
    • Less than 10 Better Business Bureau reviews
    • Does not negotiate internet, landline phones, cable/phone/internet bundles, alarm and security systems, satellite radio/TV or electric bills

    Who’s this for? Rocket Money is a top choice if you want to organize, track and easily cancel your monthly subscription services.

    Standout benefits: Rocket Money can help you track all of your subscription services providing you with a single list and making them easier to cancel if needed.

    [ Jump to more details ]

    Compare investing resources

    More on our best free budgeting tools

    Goodbudget

    Goodbudget is a personal finance app based on the envelop budgeting system, but with a few tweaks to help modernize the method.

    Availability: iOS, Android and online

    Links to accounts: No

    Categorizes your expenses: Yes, but users must manually input transactions

    [ Return to summary ]

    Empower

    Empower serves over 18 million customers with a range of financial products and tools, from retirement accounts to investment and cash management accounts. Its budgeting app, Empower Personal Dashboard, can help you better track and adjust your finances by having all your financial accounts in one place.

    Availability: iOS and Android

    Links to accounts: Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans

    Categorizes your expenses: Yes, but users can modify

    [ Return to summary ]

    GnuCash

    GnuCash is an accounting software developed and maintained by volunteers and fits the financial needs of both individuals and small businesses.

    Availability: Windows, Mac and Linux

    Links to accounts: Users can import their bank account information

    Categorizes your expenses: No

    [ Return to summary ]

    SoFi Relay

    SoFi is a large online bank that offers a range of products, from student loans to mortgagessavings accounts and more. SoFi Relay allows you to create your budget and review spending habits while using the VantageScore® 3.0 credit score.

    Availability: iOS and Android

    Links to accounts: Yes

    Categorizes your expenses: Yes

    [ Return to summary ]

    Rocket Money

    Rocket Money, from the same company behind Rocket Mortgage, has saved its users over $1 billion. It offers more unique features like bill negotiation and help with managing subscriptions.

    Availability: iOS, Android and online

    Links to accounts: Yes, bank and credit cards

    Categorizes your expenses: Yes

    [ Return to summary ]

    What does a budgeting tool do?

    You Need a Budget (YNAB)

    • Cost

      34-day free trial then $99 per year or $14.99 per month (college students who provide proof of enrollment get 12 months free)

    • Standout features

      Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the “zero-based budgeting system” where no dollar is unaccounted for). Every dollar is assigned a “job,” whether it’s to go toward bills, savings, investments, etc.

    • Categorizes your expenses

    • Links to accounts

      Yes, bank and credit cards

    • Availability

      Offered in both the App Store (for iOS) and on Google Play (for Android)

    • Security features

      Encrypted data, accredited data centers, third-party audits and more

    How do you create a budget?

    Making a budget can be done in as little as five steps:

    1. Calculate your net income: First, find out how much money you make each month (your cash inflow). Your net income is the amount of money you earn after taxes and can be found on the pay stub you receive through your employer.
    2. List your monthly expenses: Next, you want to look at your monthly costs (your cash outflow). Common monthly expenses include rent or mortgage payments, utility bills, loan payments, insurance costs, transportation, child care, groceries, dining, household goods, travel, streaming subscriptions and memberships. Also included in this category are your savings contributions, such as in a 401(k) or high-yield savings account.
    3. Label the monthly expenses as fixed or variable: Go through your list of monthly expenses and now label each as a fixed (essential items) or variable cost (nonessential items). Examples of fixed costs are rent, utility bills, transportation, insurance, food and loan payments. Your dining, travel, clothing (beyond the basics), subscriptions and memberships are variable costs. This is an important step in the process because it helps you see where you can cut back if you need to.
    4. Determine the average monthly costs for each expense: List how much you spend on each expense per month and add them all up. It’s easiest to do this step while looking at your bank account and credit card statements from the past month.
    5. Make adjustments depending on what your budget reveals: If your expenses exceed your income, this means focusing on finding items in your budget that you can remove or cut back spending on. On the other hand, if your income is higher than your expenses, reevaluate what you should be doing with those excess funds, for instance, earning more interest with a high-yield savings account.

    How to choose a free budgeting tool

    When choosing a budgeting tool, first decide what your financial goals are. Are you trying to pay down your debt? Save up to put a downpayment on a mortgage? This will impact your decision-making process, as these apps have various strengths and weaknesses. Then, you can decide how you want to interact with your free budgeting tool. Do you want to create and allocate spending yourself, or would you rather have your spending habits tracked and adjust from there? Some people prefer digital-only tools while others prefer a tactile experience like the envelope method. The nice thing is that since all these tools are free, you can test several of them and see which you prefer.

    Pros and cons of budgeting tools

    While free budgeting tools come with a lot of pros, they also have a few drawbacks.

    Pros of budgeting tools

    • Consolidates your finances: Many budgeting tools will allow you to see all your financial info, even across banks, in one simple location.
    • Visuals: Some financial tools offer charts and graphs that can help you better visualize your finances.
    • Easy to use: Lots of budgeting tools are fairly streamlined and easy to understand from the start.

    Cons of budgeting tools

    • Could be difficult to find balance: At the start, some budgeting might feel too restrictive or inflexible which could add to your stress. Additionally, if you’re budgeting with a partner you’ll need to have a conversation about how you manage your finances.
    • Might be more time-consuming: From narrowing down the right budgeting style to entering all your financial info, budgets take some time to get off the ground.

    What if these apps don’t sound like the best fit?

    Google Sheets

    Information about Google Sheets has been collected independently by Select and has not been reviewed or provided by Google Sheets prior to publication.

    • Cost

    • Standout features

      Gmail account users can access a variety of free budgeting templates to help get started

    • Categorizes your expenses

      Users manually input their expenses, but some budgeting templates offer preset categories

    • Links to accounts

      No, but some templates offer third-party add-on software that automatically pulls financial transactions into Google Sheets

    • Availability

      Offered on web browser and smartphone devices

    • Security features

      Google server protection: Unless you’ve shared your Google Sheet with someone, nobody can access your files without your Gmail account username and password. For this, Google offers two-factor authentication and physical security keys like YubiKey

    Pros

    • Free to use with your Gmail account
    • Google Sheets can be accessed from anywhere via the mobile app
    • Templates help users navigate making a budget
    • Hands-on approach forces users to really think about each transaction they make
    • Third-party add-on software available on some templates to import your banking transaction data
    • Security features include Google server protection

    Cons

    • Requires users to manually input transactions and other data, unless third-party add-on software is available with template
    • Offers so many different budgeting templates that it may be overwhelming to choose the best one for you

    FAQs

    What can I use instead of the Mint app?

    If you’re looking for a new free budgeting tool, there are many options above that fit a wide variety of budgeting styles, like Goodbudget or Rocket Money.

    Are free budgeting apps safe?

    While free budgeting apps are generally safe, it’s important to be mindful of your financial information and only provide it to sources you trust.

    What information do I need to make a budget?

    To make a basic budget you need to know your income, determine what spending is essential vs nonessential, and subtract your expenses. You can compare the differences and adjust as needed.

    Why trust CNBC Select?

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    Our methodology

    To determine which free budgeting tools offer the best user experience, CNBC Select analyzed over a dozen different budgeting tools and looked at their features and user reviews.

    We narrowed down our ranking by looking for apps that offer a free service, not just a free trial, and fit a variety of budgeting methods. We wanted variety in the ways users can build their budget, and we ranked each tool based on areas where they excel.

    The tools we selected for this ranking are all free and provide users value. For our selection, we also favored budgeting tools that have strong user reviews.

    Other factors we looked at included the security features, user customization and illustrative data insight, such as graphs and reports, that are available.

    Catch up on CNBC Select’s in-depth coverage of credit cardsbanking and money, and follow us on TikTokFacebookInstagram and Twitter to stay up to date.

    Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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