This was going to be a post either about how to budget or comparing different personal finance apps. I decided to take a step back and focus on a more important thing: WHY focus on getting a handle on finances.
I am saying “get a handle on finances” rather than “budget” because some people view “budgets” as the financial equivalent of a grapefruit and kale diet. They think it ruins all your fun and leaves a funny taste in your mouth all in the name of being healthy.
Most everyone I know has been one of two categories of people at some point in their life:
1. You’re talking to someone and they are super-duper grumpy because they paid their rent a day before their paycheck hits their bank account. If the money for rent comes out before their paycheck hits their bank account, they are going to get an overdraft fee. If it hits the day after their paycheck, they are going to get a late fee. They are freaking out and there’s nothing you can say that will make them happy until they get their paycheck in their bank account and their rent paid.
2. You are the super-duper grumpy person in that situation I just described.
Now think about all the things you might want to do in life. Write a book, paint a painting, hang out with friends, play video games, raise wonderful kids, volunteer at an animal shelter, or travel to amazing places in the world. How does trying to time your rent payment help with ANY of those things?
IT DOESN’T
This is just one tiny example of how if your finances are out of control, it is going to suck up a lot of brainpower you could be spending on much much better things.
If you figure out your finances, it’s like getting ready to run a race and you have your shoes tied securely. If not, it’s like you have the laces dangling. Once you get going, best case is you’ll be running along thinking “Are these things going to stay on?” Worst case is you’ll trip over your laces and do a face-plant right into the ground most likely breaking some bones and ending up with some nasty scars.
Everyone has something they want to do with their life. Some are so bogged down in making ends meet that they have not thought about this for years. Imagine for a minute if all your bills are paid and the extent of your financial worry is should you take that vacation or go out to eat with that good friend of yours.
The next few blog posts are going to be about tying your financial shoes to get out there and run the race that is your life. I want to see people run far, run fast, and win. Not trip over their shoelaces and eat pavement.
Preview of a post coming in the near future – apps in a nutshell
I spent far too much time trying out multiple personal finance apps to track spending and budgets are here are the top ones I’ve found:
- Banktivity – by far the best for tracking investments and budgets in one app. This app is available on MacOS and iOS. The iPhone app is free and supports mobile transaction entry and moving money between budget categories. The iPad app is not free but supports much more. The various versions of Banktivity can be downloaded from IGG Software’s website
- YNAB (You Need A Budget) – hands down the best app if all you want to do is budgeting and track spending. YNAB purposely keeps the focus on that and does not track investment accounts. One of the few downsides is it requires a subscription. Available as iOS and Android apps as well as a web-based version.
- MMEX (MoneyManagerEx) – the best open source solution I’ve found. It doesn’t do envelope budgeting, but does a great job at tracking spending across categories and accounts and keeps up with investment accounts.
- Buckets – up and coming app. This is a desktop app that works on Windows, Mac, and Linux and does not require a subscription. It is inexpensive, does envelope style budgeting and the developer is one of the most responsive I’ve seen.
Disclaimer
This article contains affiliate links.