Free Budgeting Tools Recap

When it comes to budgeting, a common resistance point is “That sounds complicated. I don’t even know where to begin.” The good news is that there are plenty of helpful free tools to get you started!

There is no single ultimate guide to budgeting. Instead, there are multiple approaches available, each with their own methodology for how to allocate your expenses and get your financial house in order. The common thread is the need to be organized and disciplined to meet your near-term obligations while building towards long-term goals.

As your financial situation gets more intricate, it can benefit you to subscribe to a planning service and/or work with a dedicated financial planner. In the meantime, here are a few resources that have basic budgeting tools available without a fee or subscription required.

*Please note that Money Skills has no connection to these providers and does not receive compensation from any of them to be listed here.*

NerdWallet

Their free worksheet uses the popular 50/30/20 rule which proposes that 50% of your income goes to needs (such as rent/mortgage, food at home, utilities, etc), 30% towards wants (such as vacations, eating out), and 20% towards savings and debt payments combined.

This is a solid building block to get started with budgeting. There can always be some debate about where certain expenses go. For example, is Netflix a want or a need? This is a good tool to organize your finances and see where you stand versus the broad categories.

EveryDollar

This service is under the Dave Ramsey product umbrella. He can be a bit polarizing in his approach to tackling debt, but the customization of this tool is noteworthy. The good news is that the free version lets you create your own categories, if you feel that is worthwhile, but note that it is then up to you to decide what belongs inside that category.

There are multiple paid versions of the tool available, and it does require you to create an account profile, but the features inside can be very useful.

Rocket Money

This is a nice spending tracker that also has some solid budgeting capabilities. The hook with Rocket Money is it tracks your actual spending and categorize that spending, then can alert you when the spending gets close to category targets. They also do a nice job of noting subscriptions that you may not be utilizing so you can easily cancel them if they are not being used- and save you some money.

This tool could fit well for someone who is already spending more than they can afford, and would like some guidance to propose changes.

There are of course many other options available, but these are good examples of different approaches. NerdWallet is a traditional template with actual spending versus fixed targets, Every Dollar has more customization available but will require more oversight by the user, and Rocket Money can flag possible unnecessary expenses and make suggestions for changes- but the user must decide if the ongoing suggestions are a help or a nuisance.

Budgeting is a vital tool for financial discipline and personal piece of mind, and there are multiple approaches available to help. The most important step is the first one- find a tool, get to work, and start building your financial confidence!

We cover budgeting tips and tricks in our Money Skills workshops. Check out the website at www.moneyskillswa.com for more information and enrollment details.