One of the most important premises of personal finance is building the right budget. Budgeting can help you control how you spend your money. It will help you to know exactly where your money is going. There are several budgeting apps available on the market, each coming with a distinctive set of features and different focus. In the following article, we will see the comparisons between Mvelopes vs EveryDollar, which are two of the most popular budgeting apps right now. Which one is better for you?
Mvelopes is a web-based software application which implements the traditional envelope budgeting method, except that it uses digital envelopes rather than actual envelopes to help you manage your budget and cashflow. Of course, it is a lot more convenient than the traditional method, as you only need to open up your smartphone or laptop to access it. See also: Mvelopes vs Mint.
Mvelopes is said to have three primary functions. It claims to be able to:
– Give you control over your finances and help recover up to 10% of your income by managing hidden spending.
– Create some peace of mind by providing a real-time view over your financial accounts and transactions through a secure access.
– Eliminate existing debt and optimize savings to build financial freedom.
Mvelopes is mainly geared towards overspenders and people in debt. This app helps people to see their expenses and overall budget so that they can plan things more responsibly.
Creating an account on Mvelopes is quite easy, but it may take some time to finish. After signing up, you will be asked about your next goals so that Mvelopes will be able to tell you whenever your budget leaks outside your priorities. Afterwards, you will be guided through four steps to get started. You’ll need to add your financial accounts, define your income, create a budget, and allocate your money into category envelopes. Mvelopes tracks your expenses so that you can have a picture about how much money left in each envelope.
Mvelopes: The Pros
There are several advantages of Mvelopes vs EveryDollar. First of all, Mvelopes is available in a free version. Of course, the free version has some limitations, but it is already quite useful for personal budgeting. It allows you to connect up to 4 bank accounts, create up to 25 envelopes, use the automatic transaction import, and benefit from the Android and iPhone apps. If you are looking for a free yet helpful app for personal budgeting, Mvelopes is an excellent answer.
Despite the apparent simplicity, Mvelopes is actually quite sophisticated and powerful. It is a great choice for simple budgeting, but it is also capable of advanced budgeting. The whole process is quite intuitive. Syncing to multiple financial institutions is easy, and transactions are categorized automatically. You can edit each transaction and customize the categories as needed.
Mvelopes: The Cons
Nevertheless, there are also a few disadvantages of Mvelopes vs EveryDollar. The first weakness of Mvelopes is that it is not able to help you track or manage your investment accounts. Well, Mvelopes does allow you to connect your brokerage accounts so that you can track your net worth, but it does not have any feature to monitor the portfolio performance. It also does not have any reporting feature for investment or tax purposes – it is entirely focused on budgeting.
Next, Mvelopes comes with many advanced features that may be a little overwhelming for a total beginner. It is easy to get lost in the different pages and resources when exploring the app. The Mvelopes Assistant is useful to guide a beginner in making a simple budget, but the more advanced features have a steep learning curve.
Just like Mvelopes, EveryDollar is a budgeting app designed for personal budgeting. It was developed by Dave Ramsey’s team to help people manage their budget and reach financial freedom. It follows the principles of the zero-sum budget, meaning that every dollar is given a job so that everything is accounted for.
To use EveryDollar, you need to create an account first. Once you’ve created an account and confirmed the confirmation email, you are ready to budget with EveryDollar. It has eight spending categories by default, but you can make custom categories. You can also make categories for savings, which EveryDollar considers as “Funds”.
In each category, you can allocate an amount of money that is “Planned”. In each “Fund”, you can input your current balance and saving goal. Every category allows you to make notes and track transactions; you can set a category as a “Favorite” so that it is shown at the top. EveryDollar demonstrates whether you are on or off the track by displaying a graph of your spending.
EveryDollar also features Dave Ramsey’s “Baby Steps”. This is a financial guide designed to help people get out of debt and build wealth. It is especially useful for beginners.
EveryDollar: The Pros
EveryDollar is very helpful for people who find it difficult to get out of debt. Dave Ramsey’s Baby Steps and various recommendations in the app have been proven to be effective to encourage people to pay off debt in full and ultimately become debt-free.
Unlike many of its competitors, EveryDollar does not have junk ads. Instead, it can connect you to local financial experts in your area who can assist in tax services, insurances, retirement investments, and property trades.
EveryDollar: The Cons
Compared to Mvelopes, EveryDollar has a few disadvantages. First, it is not available in a free version. There is just a 15-day trial period, but you will need to subscribe to continue using it once the trial is over. The subscription is quite expensive. Second, the trial version is very limited; you have to track all transactions manually, since the trial version does not allow you to sync your bank accounts and credit cards.
EveryDollar is also entirely focused on budgeting. It does not have any feature for investment tracking. It cannot track your investment accounts.
|- Based on envelope budgeting with advanced capabilities||- Based on zero-sum budgeting with detailed features|
|- Doesn’t track portfolio performance, but can connect to brokerage accounts||- Can’t connect to investment accounts|
|- Available in a free version and a premium version||- Has a 15-day trial, the full version is quite expensive|
|- The free version already allows automatic transaction tracking||- The trial version doesn’t allow automatic transaction tracking|
In general, Mvelopes is better. It is available in a free version that is good enough for personal budgeting. The features and capabilities of Mvelopes are also better. It doesn’t track your portfolio performance, but it can connect to your brokerage accounts to track your net worth. On the other hand, EveryDollar is more limited, but you can choose EveryDollar if you need some serious help to get out of debt.