There are only two options if you want to have more money in your pocket. Either you make more money, or you save more money. You can’t use a magic formula for that. Budgeting makes a great first step if you want to start saving. Mvelopes vs Goodbudget are simple yet effective budgeting apps that can help you out.
Continue reading this article if you want to find out more about:
– How Mvelopes and Goodbudget work,
– The distinctive features of each budgeting app,
– The pros and cons of Mvelopes vs Goodbudget, and
– Which budgeting app that is generally better and more effective.
Mvelopes is based on the envelope budgeting method. With the traditional method, you divide your cash into different physical envelopes in order to restrict your spending in each category. Mvelopesis similar, except that it uses digital envelopes. Mvelopes has proven itself to be highly effective by getting voted as the best budgeting app for over-spenders in 2012. See also: Mvelopes vs EveryDollar.
Mvelopes is available in three versions, which are Mvelopes, Mvelopes Premier, and Mvelopes Coaching. The basic version is free, and it already allows you to connect up to 4 bank accounts and create up to 25 different envelopes. Meanwhile, the Premier version costs $95 per year to unlock unlimited bank accounts and envelopes. The Coaching version is apparently more expensive due to including assistance and guidance for people needing help to reach their goals or get out of their debts.
Advantages of Mvelopes
Mvelopes is very easy to use. It takes little effort to connect your bank accounts and credit cards. It is compatible with most popular banks and credit unions. After connecting all your accounts, the app can automatically import your balance and transaction information in order to track your progress.
Mvelopes can automatically categorize transactions. Although you still need to adjust the categorization from time to time, you won’t need to write down every single individual transaction. The whole budgeting process is intuitive and easy to understand; first, you schedule your paychecks so that you won’t miss any payment, and from there you can divide the remaining amount to your spending categories.
Mvelopes is already equipped with reporting functions. It can give reports regarding your envelopes (spending categories), budget, and cash flow. From the reports, you can see the details of your funding and spending, balances, spending in each category, and net worth. You can export the reports to CSV or PDF files for further analysis.
The free version is great. It already allows you to have a functioning budget, given that you only have few financial accounts and you don’t need more than 25 envelopes. Some people only use the free version without ever really upgrading to the premium subscription. You can sign up for Mvelopes here!
Disadvantages of Mvelopes
There is just one disadvantage of Mvelopes. Although it also allows you to connect your brokerage accounts, it only shows the balances. It does not show how the investments contribute to your net worth. You can’t see your portfolio performance.
So, Mvelopes is not ideal if you are looking for a budgeting app with capabilities in investment management or investment tracking. It is also not a suitable choice if you need a budgeting app for tax purposes, as you should also consider your investments when preparing your taxes.
Goodbudget is very similar to Mvelopes. It is also based on the traditional envelope budgeting method. Whenever you receive a paycheck, you will be asked to divide your money into the spending categories that you have set up. This way, it encourages you to stay honest about your income, expenses, and purchases.
The underlying technique used by both MvelopesvsGoodbudget is the same, so don’t be surprised that they feel very similar. However, there is a distinction that makes Goodbudget stand out. While Mvelopes is more for single-person budgeting, Goodbudget is great for couples and households. In Goodbudget, a budget can be synched across multiple devices. Goodbudget can even send a notification whenever money is deducted from an envelope.
Just like Mvelopes, Goodbudget is available in a free version and a paid version. The free version only allows up to 2 devices and 20 envelopes. As you can see, the number of envelopes that you can make in the free version is slightly lower than that of Mvelopes. In addition, it only tracks one year of history. The paid version costs $45 per year to support up to 5 devices, unlock unlimited envelopes, and track five years of history.
Advantages of Goodbudget
Goodbudget is also very easy to use. The budgeting process is simple and easy to understand. You can make several envelopes for spending categories, then allocate your money into each envelope. The process to connect multiple devices is also easy, seamless, and straightforward.
The ability to sync the same budget across multiple devices is really great. This is incredibly useful for couples and households. It will make staying on track with the budget so much easier. Not only that; the notifications on the transactions also help couples and households to evaluate their financial habits.
You can also use Goodbudget without paying a dime. The free version is fully functional. If you need to use the premium version, it is important to point out that Goodbudget’s paid version is more affordable than Mvelopes’s.
Disadvantages of Goodbudget
Although Goodbudget has many advantages, there is one crucial weakness. It does not have the ability to connect and sync with any financial account. So, you can’t connect your bank accounts, credit cards, or brokerage accounts. All your transactions must be entered manually. This is very time consuming.
Alternatively, you can download your transaction files from the financial institutions and import those files into Goodbudget. This is probably a more efficient approach, but it still takes time and effort.
Mvelopes vs Goodbudget
|- More for personal budgeting||- Great for couples and households|
|- Connects to bank accounts, credit cards, brokerage accounts||- Can’t connect to any financial account|
|- Transactions can be synced automatically from your accounts, entered manually, or imported||- Transactions should be entered manually or imported|
|- The free version allows up to 4 bank accounts and 25 envelopes||- The free version allows up to 2 synced devices and 20 envelopes|
|- The paid version costs $95 per year for unlimited bank accounts and envelopes||- The paid version costs $45 per year for 5 synced devices, unlimited envelopes, and five years of history|
Both Mvelopes vs Goodbudget have excellent budgeting capabilities. They both can help you plan your budgets and spend your money more responsibly. However, for personal budgeting, Mvelopes is the better choice. Mvelopes can connect to your bank accounts and credit cards to sync automatically. Goodbudget is only recommended if you really need its ability to sync budgets across multiple devices. The downside of Goodbudget is that it can’t connect to financial accounts.