Last updated on July 30th, 2022 at 08:20 pm
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What Is You Need A Budget Savings App?
You Need A Budget is commonly abbreviated as YNAB. It is a budgeting and savings app that is designed to help you get in control of your money. You can develop spending and savings plans and stick to the same plan over time in order to see results. The wonderful thing about YNAB is that it comes with classes, podcasts, and reading materials on budgeting and saving. Therefore, you’re not just getting an app. You are truly developing your own financial savvy.
The YNAB “method” is based on four simple rules. Firstly, you need to allocate your money to certain categories as soon as you get it. In this way, you don’t have to make every individual spending decision on momentary whims. Secondly, you need to plan ahead for big upcoming bills. Save a little bit each month. Thirdly, you should be flexible rather than feel guilty when things don’t go according to plan. Fourthly, you should be aiming to only spend money that has been in your hands for at least 30 days.
You Need A Budget Savings App was founded in 2003 by Jesse Mecham. It’s available as a web-based application, for iOS and for Google Android. You can try a free trial for 34 days. After that, it costs $50 yearly or $5 monthly. YNAB also offers its workshops and training materials for free. In this way, you can get a taste of the method before committing to the app.
We Liked You Need a Budget Savings App Because…
- It forces you to deal only with the money that you currently have in your bank account, and make a plan for what you want to do with it. This is very helpful for those who tend to anticipate money coming in and spend it before they have it. It allows you to develop a narrower focus and prioritize your funds.
- While you have to do all of the estimating and budgeting yourself here — it’s not automated for you — there is room for making mistakes. In fact, the YNAB approach encourages you to take these things in stride and learn as you go.
- You can connect all your bank accounts in one place.
- It aggregates spending data to show how much of your money is going toward categories like eating out or buying clothes during a certain time period. It also shows you when you’re under- or overspending in a certain category according to the budget you developed.
- Although it automatically tracks your spending by connecting to your bank, you have to categorize every transaction yourself. This forces you to become intimate with your money and spending habits.
- You can use it on your phone or computer and access the same information anywhere.
- It offers the ability to budget for long-term goals. You can also calculate how much money you’ll need to set aside each month to reach your goal by a certain date.
- It comes with a wealth of training materials. Therefore, you’re able to develop your knowledge of budgeting methods while you practice.
Not So Sure About…
- The hands-on nature of the app may not be suitable for those who find it difficult to get motivated enough to think about their finances every day. The same for those who want to save time, or who don’t want to do any mathematical legwork themselves.
- It doesn’t offer much big-picture information about your money. It’s purely a monthly budgeting tool.
- You have to manually estimate the amount of money you’ll need for each category of your budget. It doesn’t track your past expenses or help give you a ballpark figure. Also, it only deals with the money currently in your account.
- It costs money to use, even though the interface is fairly simple when you compare it to other savings apps.
- Though the app seems reasonably secure, it doesn’t offer multifactor authentication for added security. Nor does it offer second-party verification (such as Norton Secured or VeriSign).
- It’s not that easy to get the hang of things. This is the flipside to the abundance of training material. You have to put in the time to learn how this method is meant to be used.
- It doesn’t offer any information about investments or assets.
Online Reviews Say That
In short, reviews of You Need A Budget savings app have determined that this app is very similar to the old school pen-and-paper or spreadsheet method. That said, it’s useful to have it available as an app everywhere you go. Therefore, this app may be ideal for those who are meticulous and like disciplike with regarding their money. Or for those who want to learn to be. Since YNAB comes with learning materials and a community approach, you’re able to really dive into their budgeting philosophy with two feet.
YNAB will help individuals who don’t have significant savings or investments to simply get a handle on the monthly income they do have. Thus, it’s great for more modest individuals and households. The app may have some kinks and be difficult to use at times. However, it can still be a useful tool for learning some of the basic ground rules of budgeting.
Other reviews described it as an app that focuses on one thing and does it well. The narrow focus on budgeting your current monthly income actually allows it to be effective at what it does. That is instead of trying to solve all of your financial problems in one app.
Most other reviews of YNAB echo these sentiments. They emphasize that this app is much more than just an app. It’s a lifestyle, an overall attitude toward finances. It’s one that can develop over time and customize for your changing income. This app is simply not going to meet everyone’s needs. Many people who are looking for a savings app would rather have at least some hand-holding and automation in the beginning. However, there are tons of folks who are prepared to make a large-scale change in the way they think about their money. That’s who this app is designed for.
You Need A Budget savings app has a lot to offer. It’s much more than just an app. Instead, it’s an entire method, and it’s one that could help turn your financial life around. It’s particularly good for those who are looking to get a handle on their money and learn to only spend they have. It’s also useful for those who already have a strong budgeting habit. Also, for those who need a simple interface that they can use anywhere.
If you have the discipline to be hands-on with your money and want to be empowered and involved in your financial decisions, then You Need a Budget Savings App is perfect for you.