How to Start Budgeting: A Simple Plan for Beginners

Here's how to start budgeting: write down what comes in each month, list the bills you must pay, give the rest a plan, and check in once a week. An app makes the habit easier. YNAB suits people who want a strict plan for every dollar. Goodbudget and EveryDollar suit beginners who want a free start. Monarch Money suits people who want accounts tracked for them, and Honeydue suits couples.

How to start budgeting in four simple steps

A budget is just a plan for your money. You don't need a spreadsheet or a finance degree. You need four steps, and the patience to repeat them for a few weeks.

1. Write down what comes in. Add up the money you get each month from pay, side jobs or anything else. Use the amount that actually lands in your account.
2. List what has to go out. Rent, bills, phone, transport, debt payments. These are the things you can't skip.
3. Give the rest a plan. Split what's left into groups like food, fun, savings and gifts. Every group gets an amount.
4. Check in once a week. Look at what you spent, move money between groups if you need to, and keep going.

That's it. The hard part isn't the math, it's the habit. A good app makes the habit easier, because it does the adding up and reminds you where you stand.

Which app fits depends on how you answer a few questions. Each section below is one question, with the apps that suit each answer. If you'd rather see a full list first, our guide to the best budget apps sorts them by situation.

Do you want to plan ahead or track what you spent?

This is the biggest choice in budgeting for beginners. There are two styles, and both work.

Planning ahead means you decide what each dollar is for before you spend it. This is called zero-based budgeting. It changes your habits fastest, but it asks for a few minutes of attention most weeks.

Tracking means the app pulls in your spending and shows you how you're doing against a budget. It's easier to keep up, but it's also easier to look at the numbers and do nothing.

If you want to plan every dollar: YNAB

YNAB · $109/yrView app ›

YNAB, short for You Need A Budget, is built on one simple rule: give every dollar a job before the month starts. You plan your spending, then adjust as life happens. It suits you if you want a strict system that plans every dollar ahead.

The catch is that the method takes a few weeks to click. Your first month may feel like homework. That effort is what builds the habit.

If you want a simple zero-based budget: EveryDollar

EveryDollarView app ›

EveryDollar is a simple zero-based monthly budget from Ramsey Solutions. Monthly budgeting is free, and paid plans add bank connections and more. It suits people who follow a zero-based, debt-free approach.

The catch is that it pushes its paid Premium plan and other Ramsey products. If upsells bother you, look elsewhere.

If you'd rather track automatically: Monarch Money

Monarch Money · $99.99/yrView app ›

Monarch Money connects to your bank, card and investment accounts and sorts your spending for you. You get one dashboard with your budget, net worth, upcoming bills and goals. It suits you if you want every account in one place.

The catch is that it's built around syncing banks, so doing it all by hand loses much of what you pay for. If you're torn between these two styles, our YNAB vs Monarch Money comparison goes deeper.

Are you happy to connect your bank?

Some people like their spending to appear in the app on its own. Others would rather keep their bank details out of any app. Both are fine ways to start a budget.

If you'd rather not: Goodbudget

GoodbudgetView app ›

Goodbudget uses envelope budgeting. You split your income into virtual envelopes like groceries or rent, then spend from them. When an envelope is empty, you stop or move money from another one. It's one of the easiest ways to picture a budget.

It needs no bank connection. It's free forever with 10 regular and 10 annual envelopes, and it has no ads. The catch is that you log every expense by hand on the free plan. Many beginners find that typing in each purchase is exactly what makes them notice their spending.

If you want no bank and no subscription: HomeBudget

HomeBudget · $4.99 onceView app ›

HomeBudget is a classic expense tracker with bills and accounts. You enter everything yourself, it needs no bank connection, and it works offline with no ads. It costs $4.99 once, and there's a separate free Lite app if you want to try it first.

The catch is that it looks dated, and each platform is bought separately.

If you're happy to link a bank

Monarch Money does most of its work through your linked accounts. YNAB and EveryDollar let you choose: link a bank, or add things by hand. On EveryDollar, bank connections come with the paid plans.

Do you share money with someone?

If you live with a partner or run a household, budgeting alone only gets you halfway. You both need to see the same numbers.

If you're a couple: Honeydue

Honeydue · FreeView app ›

Honeydue is a money app made for couples. You set shared spending limits and can chat about purchases right in the app. It's free to use, with optional tips. It suits couples who want to see accounts and bills together for free.

The catch is that it works best with linked US bank accounts. Skip it if you won't link a bank or you live outside the US. It's on iPhone and Android.

Other ways to share

• YNAB lets up to six people share one plan on a single subscription.
• Monarch Money lets you invite a partner at no extra cost.
• Goodbudget syncs between phones and the web, so you both see the same envelopes.
• HomeBudget has Family Sync, which puts the whole household on one budget.

For more on this, see our guide to a budget app for couples.

How much do you want to pay?

You can start a budget for free. Paying makes sense only if the app gives you something you'll really use.

• Free: Goodbudget is free forever with its envelope limits. EveryDollar's monthly budgeting is free. Honeydue is free to use, with optional tips.
• Pay once: HomeBudget costs $4.99 once, with a free Lite app to try first.
• Subscription: YNAB is free for 30 days, then $109 a year. Monarch Money is free for 7 days, then $99.99 a year.

A free trial is a fair way to test a paid app. Set a reminder a few days before it ends, so you decide on purpose and don't pay by accident. If you want to compare what each free plan really includes, our post on free budget apps breaks it down.

How much time can you give it each week?

Be honest here. The best budget is the one you'll still open in three months.

• A short session each week, by hand: Goodbudget, EveryDollar or HomeBudget. You type in purchases, so it takes a little time, but you'll know your spending well.
• A few minutes most weeks, with a plan: YNAB. It asks for regular check-ins, especially in the first month.
• A quick look now and then: Monarch Money. It sorts things for you, so you mostly review and fix the odd category.

Compare beginner budgeting apps

Here's how the main options line up side by side.

Your first month of budgeting

Once you've picked an app, keep the first month simple.

• Start small. Use a handful of groups, not thirty. You can split them later.
• Expect to get it wrong. Your first budget will miss something. That's normal. Move money and carry on.
• Plan for big yearly bills. Set a little aside each month for things like car repairs or gifts, so they stop being a surprise.
• Check in on the same day each week. A regular slot turns budgeting into a habit.

If an app feels like a chore after a few weeks, switch. You can also search Squapp for a budget app that matches how you already think about money.

Keep deciding: Best Budget Apps for iPhone, Free budget apps, what you really get, Find a budget app for beginners.