Technology

Top 5 Personal Finance Tools to Help You Master Your Budget

Managing money is something we all need to learn and do, and personal finance tools can make it much easier. Whether you need to keep track of spending, save for a vacation, or manage your debts, the right tools can help you achieve your financial goals.   

This blog explores different types of budgeting apps and software that can assist you in taking control of your finances. You’ll learn about essential features and how these tools can cater to your financial needs, from simple budgeting to complex investment tracking. Let’s find out which personal finance tool is best for you. 

Understanding Personal Finance Tools

Personal finance tools come in many shapes and sizes, each designed to help you with different aspects of your money management. Here are the types of tools available and the features you should consider to find the best fit for your needs. 

Categories of personal finance tools:

• Budgeting Apps. These are some of the best tools for personal finance when it comes to managing daily expenses. Apps like YNAB (You Need A Budget) and Goodbudget make allocating every dollar you earn easier, helping you stay on top of your spending without stress. These are great examples of budgeting apps and are ideal if you’re looking for a simple budget app or the best budget-tracking app. 
• Investment Trackers. If you’re focused on growing your wealth, you’ll need reliable financial software. Tools like Empower and Copilot are perfect for keeping an eye on your investments. They show how your stocks, bonds, and other investments are doing, which is essential for anyone serious about retirement planning. 
• Debt Management. Managing and reducing debt is crucial for financial freedom. Tools like Rocket Money offer dedicated features to help you track and manage your debt efficiently, ensuring you can plan your payments and reduce your debt faster. 
• Comprehensive Financial Dashboards. Software like Quicken and the Empower Personal Dashboard provide extensive functionalities for a complete overview of your finances. They integrate various aspects of financial management, from budgeting to investment tracking, all in one place. 

To learn more about these best tools for personal finance, keep reading – we go over them in detail in the next section. 

Financial software features to consider:

• Bank and Credit Card Integration 

The best personal finance software should connect seamlessly with your financial accounts to track transactions automatically without manual input. 

• Investment and Retirement Planning Tools 

Look for software that provides detailed analytics on your investments and offers tools to help plan for retirement, ensuring you’re on track to meet your long-term financial goals. 

• Budget Creation and Management 

Essential tools should allow for easy setup and tracking of monthly budgets, enabling you to allocate funds to different categories and monitor spending against these budgets. 

• Expense Categorization and Financial Reporting 

Accurate expense categorization and detailed financial reports are crucial for analyzing spending patterns and making informed decisions. 

• Alerts for Bills and Unusual Activity 

Software should include automatic alerts for due bills and any unusual activities in your accounts, aiding in cash flow management and fraud protection. 

• Comprehensive Investment Tracking 

Effective software should let you monitor investment portfolios across various platforms, crucial for assessing asset allocation and performance. 

• Recognition and Tracking of Recurring Expenses 

Advanced tools can automatically detect and categorize recurring payments and account transfers, simplifying the management of subscriptions and regular bills. 

Understanding these features will help you choose a personal finance tool that suits your needs, whether you’re looking to tighten up your budgeting practices or get a comprehensive view of your financial health. 

Pricing Models

Budget tracking apps follow the same pricing models as any other app: 

• Free models. Many budgeting apps offer basic features for free. These are great for beginners or those with straightforward financial needs. However, they might include ads or offer limited features. 
• Paid models. Paid apps often provide more comprehensive tools and better user support. They might come as subscriptions or one-time purchases. 
• Subscription services. They usually offer regular updates, ongoing customer support, and cloud-based services you can access from any device.  
• One-time purchase costs. They might cost more upfront and could become outdated unless you pay for upgrades. 

Consider what features you need. If you’re looking for detailed investment tracking or advanced financial planning, a paid service might be worth it. For basic budgeting, a free or low-cost app could suffice. 

5 Top Personal Finance Tools of 2024

Let’s explore some of the top tools this year, their benefits, drawbacks, and costs. 

Quicken: Best for Detailed Financial Management

Source: Quicken

Key Features: 

• Customize and automate reports on spending, income, net income, and savings. 
• Ability to pay over 11,500 billers electronically or through physical checks sent by Quicken. 
• Deep dive into cash flows, profit & loss, investments, and more with customizable reports. 
• Set savings targets for specific goals, manage budgets, and create multiple budget scenarios. 
• Offers detailed insights into portfolio performance with customizable views and benchmarks against the market. 
• Features tools to adjust financial plans based on life events and unexpected expenses. 

Pros: 

• Offers tools for budgeting, bill payment, investment tracking, and debt management. 
• Highly customizable reports and budgeting tools to match user preferences and needs. 
• Easily import data from similar platforms like Mint and Credit Karma. 
• Provides timely updates on financial statuses and potential issues. 

Cons: 

• Unlike some free financial tools, Quicken comes with a subscription cost. 
• The wealth of features and customization options might be overwhelming for beginners. 

Pricing: 

Quicken offers plans with features tailored to different needs, all billed annually: 

• Starter: From $3.99 per month 

• Deluxe: From $4.99 per month  
• Premier: From $6.99 per month  
• Home & Business: From $9.99 per month  

YNAB (You Need A Budget): Best for Zero-Based Budgeting

Source: YNAB

Features: 

• Uses a zero-based budgeting system where every dollar is assigned a job, allowing users to allocate all available funds to expenses, savings, and debts.  
• Operates on four fundamental rules that help structure the budgeting process: Give Every Dollar a Job, Embrace Your True Expenses, Roll With The Punches, and Age Your Money.  
• Encourages planning for less frequent, larger expenses by treating them like monthly expenses, reducing stress, and avoiding debt.  
• Offers flexibility to adjust budgets as circumstances change, maintaining alignment with current financial realities.  
• Provides world-class customer support, focusing on user success and understanding of the software.  

Pros:  

• Helps users gain a clear financial perspective by actively assigning every dollar and planning for future expenses.  
• Offers extensive educational resources and guides to help users understand and implement the budgeting process effectively.  
• Emphasizes user privacy with a business model based on subscription fees rather than selling user data. 

Cons: 

• Unlike some free tools, YNAB requires a paid subscription, which might be a drawback for users looking for free options. 
• The rule-based system and zero-based budgeting approach can require a period of adjustment and might be complex for new users. 

Pricing: 

• Annual Plan: $8.25/month
  Monthly Plan: $14.99/month 

Empower: Best for Comprehensive Wealth Management

Source: Empower

Features: 

• Offers a competitive 4.70% APY with the Empower Personal Cash™ program, which is significantly higher than traditional bank accounts. 
• Provides up to $5 million in aggregate FDIC insurance through the Empower Personal Cash program, far surpassing the standard $250,000 limit per bank. 
• Includes budgeting and retirement planning tools, helping users manage their finances and plan for future needs. 
• Offers a variety of investment products including IRAs with potential commission-free ETFs and advisory services through Empower Advisory Group, LLC. 

Pros: 

• Maintains high-security standards to protect user data, with ongoing adherence to robust encryption and security practices. 
• Despite transitions or system updates, fees remain unchanged, providing stability in service charges. 
• Offers a broad range of financial services from cash management to investment and retirement planning. 

Cons: 

• The wide array of options and detailed fee structures could be overwhelming for users new to financial management. 
• Some desired features like debit cards or comprehensive bill pay through the Empower Personal Cash program are still in development. 

Pricing: 

• Advisory services provided by Empower Advisory Group, LLC are available for a fee, details of which are typically customized based on the client’s investment choices and services used. 

PocketGuard: Best for Simplified Budgeting

Source: Max Polyakov

Features: 

• Allows users to easily see upcoming bills, helping to manage cash flow and avoid overdrafts. 
• Enhances tracking by using hashtags to easily categorize and access spending on specific items or events. 
• Offers tools to compare spending across different months, providing insights into spending habits and financial trends. 
• Users can tailor their budgets with custom categories, split transactions, and manage multiple cash accounts in the Plus version. 

Pros: 

• Known for its straightforward and easy-to-use interface that simplifies budget management. 
• Automates tracking of expenditures, savings goals, and provides bill reminders. 
• PocketGuard Plus offers additional features at a competitive price, making it one of the more affordable budgeting apps available. 

Cons: 

• While the free version is adequate for basic budgeting, more advanced features require upgrading to PocketGuard Plus. 
• Does not offer as extensive financial planning tools as some other apps, focusing primarily on budgeting rather than broad financial management. 

Pricing: 

• Free Version 
• PocketGuard Plus Monthly Plan: $12.99 per month
  PocketGuard Plus Yearly Plan: $74.99 billed annually 
• Pricing structures change regularly 

Honeydue: Best for Couples Managing Finances Together

Source: Honeydue (@gethoneydue) / X

Features:

• Allows couples to track individual and shared financial transactions in one place, promoting transparency and ease of budget management. 
• Features a shared calendar for bills, sending alerts to both partners about upcoming due dates, helping prevent missed payments. 
• Couples can link their bank accounts, loans, and investments to the app for a comprehensive view of their finances. 
• Integrated communication tool within the app that allows couples to discuss financial matters directly, enhancing collaboration. 

Pros: 

• Specifically tailored to meet the needs of partners managing finances together, offering features that facilitate shared financial decision-making. 
• Provides options to control what financial information is shared with your partner, enhancing trust and communication. 
• The app is free to use, and the optional joint bank account has no monthly fees or minimum deposit requirements. 

Cons: 

• Honeydue is only accessible through its mobile app, lacking desktop or web access which could limit usability for some users. 
• Although the app is free, it includes advertisements which might detract from the user experience for some. 

Pricing: 

• Free to download and use. It offers most features at no cost, supported by optional tips up to $10 monthly for satisfied users. 
• Optional Joint Bank Account is also free, without monthly fees or minimums, providing access to over 55,000 surcharge-free ATMs. 

Financial App Alternatives (Free to Use)

While paid personal finance tools offer a range of powerful features, several affordable or even free alternatives can also help you effectively manage your finances.   

For example, you could use Excel templates for budgeting. Excel remains one of the most versatile tools for financial management. You can find numerous budgeting templates online that are entirely free. These templates allow you to track your income, expenses, and savings without any cost. They require some manual input but are highly customizable.  

You can also get inspiration by browsing social media. For example, Reddit offers a wealth of knowledge through communities like r/personalfinance and r/PFtools. These forums provide free advice, tips, and resources on various financial topics. Community members often share their own spreadsheets, tools, and budgeting and financial planning methods, which you can adapt for your own use.  

There are many free financial tools available, such as Mint, which provide basic budgeting and expense-tracking functionalities. However, these free versions often have limitations like ads, fewer features, and less comprehensive financial data integration compared to their paid counterparts. While they are a good starting point, if you require more detailed analyses or advanced features, you might eventually need to consider paid options. 

Final Thoughts on Personal Finance Tools

Personal finance tools are crucial in helping you align with and achieve your financial goals. Whether aiming to tighten your monthly budget, track your investments more closely, manage debt, or save for a big future expense, the right tool can make all the difference. Each tool offers unique features and capabilities, making it essential to choose one that fits your specific needs and financial situation.  

Remember, the goal of using any personal finance tool is to make your financial management easier, more efficient, and aligned with your personal financial objectives. With the right tool, you’re better equipped to navigate the complexities of personal finance and confidently steer toward your financial goals.