Budgeting is the core foundation of financial wellness. It helps you to keep control over your money and to achieve your financial goals. More and more people are becoming more aware of the importance of budgeting – and budgeting apps are becoming more popular than ever before. There are now several popular budgeting apps with their own loyal users, such as YNAB and EveryDollar. In this article, we will discuss about the comparisons of YNAB vs EveryDollar to help you choose the most suitable budgeting app.
YNAB stands for “You Need A Budget”. It was developed by Jesse Mecham when he was still studying at Brigham Young University. He was taking an Excel class when he created a spreadsheet to track his family budget. Then, he tried to sell the spreadsheet. Surprisingly, the spreadsheet sold a lot. So, he developed it even further to become YNAB. Now, he has a full team to develop YNAB, which has evolved far beyond a mere Excel spreadsheet. It is now a web-based app that also has Android and iOS mobile apps. It focuses only on one job, budgeting, and it does the job very well. See also: Mvelopes vs YNAB.
To make your budget work, YNAB has four rules that you have to follow. First, you have to put a job on each and every dollar. As you hold the money in your hands, try asking yourself, what should this money do before I get paid again? You can follow the first rule by connecting your bank and credit accounts, setting up categories, dividing your money into these categories, and tracking your expenses.
Second, you have to specify all your true expenses and their deadlines, including those less-frequent yet certain holiday expenses and insurance premiums. YNAB will tell you whether you are on-track or not. Third, when you really need to change your budget, don’t hesitate very much to change it. Fourth, you should also age your money so that you won’t be living paycheck to paycheck anymore.
YNAB: The Pros
Despite the simplicity, YNAB is a highly effective and robust budgeting app. There are several advantages of YNAB vs EveryDollar. First of all, it works seamlessly with nearly all banking institutions and credit cards. It has an automatic matching function for manual entries with bank import and easy bank account reconciliation to ensure that you budget matches the reality. Other budgeting apps, including EveryDollar, are not compatible with some banking institutions, so this is a big advantage.
The budgeting and tracking capabilities of YNAB are robust. It has a powerful account register system which supports recurring transactions, and you can see the average spent of each category. In addition, it allows one account to have multiple budgets. So, you don’t need to have multiple accounts for your home and business budgets. In a hurry? The quick budget options can help you create a monthly budget in no time!
Last but not least, YNAB has powerful mobile apps. The new Android and iOS apps are now fully featured. You can use one of the mobile apps to do full budgeting without the need to use a desktop computer. This is great for mobile and busy people. The mobile apps even have GPS capabilities which so that they can remember your favorite stores to save time on transaction entries.
YNAB: The Cons
As explained in the overview section, YNAB has its own budgeting philosophy, which may be a little strange and difficult to adjust to for some people. This is especially true if you’ve been using another budgeting app with a different philosophy, or if you have your own.
The other disadvantage of YNAB vs EveryDollar is the fact that this app does not have a free version. There is just a 34-day trial period if you want to test the product. Afterwards, you have to subscribe for $83.99 per year.
EveryDollar was developed by Ramsey Solutions. It is a relatively newer product. It has a neat and intuitive interface which allows easy transaction entry. It also has a specific budgeting philosophy. It recommends you to create a budget every before the month begins, either in a team or with your spouse.
During the budgeting process, you have to budget all your money and leave zero dollar. You have to specify when the money is allocated for your saving. Finally, it encourages you to track your each and every transaction. You can enter the transactions manually or by importing them if you use the paid version, then assign these transactions to specific categories.
EveryDollar: The Pros
If you are looking for a free budgeting app, you probably will put your eyes on EveryDollar. The app is available in both free and paid version. The free version already has most of the features except the ability to connect to your bank accounts and import transactions. For convenience sake, you may want to upgrade to the paid version for this ability.
EveryDollar is incredibly easy and simple to set up. If you are a total beginner, you can follow Dave Ramsey’s Baby Steps Program which will guide you through the budgeting process. Meanwhile, experienced users are probably already familiar with the budget forms used by this app.
EveryDollar: The Cons
Remember when we said that some budgeting apps are not compatible with some bank institutions? When choosing between YNAB vs EveryDollar, keep in mind that EveryDollar does not connect to American Express. There are some other banking institutions that are not supported by this app, but the others are relatively less popular.
Furthermore, EveryDollar does not support account registers. As the effect, you may need another method to keep track of your bank accounts. The transaction entry may be a little clunky because it does not keep the memory of payees.
Although EveryDollar does have a free version, it is plagued by a lot of ads. Most of these ads come from Dave Ramsey’s local provider network. Meanwhile, the paid version is even more expensive than YNAB at $99 per year.
|- Supports most banking institutions and credit cards||- Does not support American Express and some other institutions|
|- Budgeting is based on categories||- Budgeting uses conventional forms|
|- Has account registers and easy transaction entry||- No account registers, somewhat clunky transaction entry|
|- No free version, but has a free trial; the paid version is $83.99/year||- Has a free version with ads; the paid version is $99/year|
In the end, YNAB is still the winner. It has better overall functionality, with easy transaction entry and support for most banks and credit cards. The paid version is slightly more affordable, too. On the other hand, EveryDollar has more limited capabilities, the free version has quite a lot of ads, and the paid version is more expensive.