Understanding how much you earn and spend is the key to getting control of your finances.
Creating a budget gives you a better sense of where your money is going and can help you achieve financial milestones like buying your first home.
CNBC Select has selected the best free budgeting tools for beginners, investors, small business owners and more. (See our methodology for more on how we made our selections.)
Best for beginners: Goodbudget
Goodbudget
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Cost
Free for 20 total envelopes; $10/month (or $80/year) for unlimited envelopes
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Standout features
Allows couples to use the envelope system digitally for budgeting, and allows couples to track their debt
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Categorizes your expenses
Yes, but users must manually input transactions since the app does not sync to your bank account
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Links to accounts
No, users must manually input purchases and transactions
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android) and as a version for laptops
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Security features
Information is using bank-grade 256-bit SSL
Pros
- Free version of the app available
- Ability to share budget and spending with your partner
- Digital envelopes help couples save for big goals that matter to them
- Money management courses and resources available
Cons
- Transactions must be entered manually
Who’s this for? Goodbudget is a great fit if you’re new to budgeting. It’s essentially a digital version of envelope stuffing, assigning a category to all of your money, and comes with an easy-to-use interface and lots of education tools.
Standout benefits: Users can share and sync their budgets, making this app a good option for couples and families.
Best for meeting savings goals: SoFi Relay
SoFi Relay
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Cost
SoFi Relay has no fees or costs for use.
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Standout features
SoFi Relay allows you to compile into one place information about your assets, liabilities and financial goals.
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Categorizes your expenses
Yes, Relay allows you to view charts that categorize credit card and debit card transactions by budgeting categories (such as groceries and utility bills).
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Links to accounts
Yes, Relay allows you to link accounts at external institutions to review spending, savings and budgeting across multiple accounts, and based on current month as well as historical trends
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Availability
Available on SoFi.com on the web or in the SoFi mobile app.
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Security features
User data is stored in a location that includes physical security, fire protection, and electronic shielding.
Pros
- Free to use
- Users can create charts that categorize spending in different financial categories
- Provides tips and insights based on your financial information
- Allows you to compile and view financial info from multiple accounts
- Automatically updates your connected accounts to always be up-to-date
- Security features include both physical and electronic protections
Cons
- Uses the VantageScore® 3.0 credit score, not FICO
- May lack some premium features other paid apps provide
Who’s this for? SoFi Relay is available through the SoFi app, but you don’t have to have a SoFi account to use it. It links to most cards and bank accounts, to easily let you track your spending and savings. You also get access to a financial expert to discuss your savings goals.
Standout benefits: Relay comes with free credit score monitoring.
Best for managing subscriptions: Rocket Money
Rocket Money
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Cost
The basic plan is free. Rocket Money Premium is $6 to $12 a month with a 7-day free trial. Bill negotiation services cost 35% to 60% of the savings earned
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Standout features
Easily cancel unwanted subscriptions, track your spending and credit score, automate savings and get help lowering bills. Rocket Money Premium includes additional services like bill negotiation, net-worth tracking, credit reports and a subscription cancellation concierge service
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Security
Rocket Money accesses transaction data via an encrypted token, uses Plaid API so user credentials are never stored, provides bank-level 256-bit encryption and hosts servers on Amazon Web Services
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Availability
Offered online and on both the App Store (for iOS) and on Google Play (for Android)
Pros
- Rocket Money claims 80% of users save money by cancelling unwanted subscriptions
- Bill negotiation services are available
- Provides VantageScore 3.0 credit score and Experian credit report
- Interest-free pay advance available up to $100 to qualifying users
- A+ from Better Business Bureau
Cons
- Nonrefundable bill negotiation fee can be up to 60% of savings
- Does not negotiate internet, landline or cable/phone/internet bundles, electricity bills, security systems or satellite radio/TV bills
Who’s this for? Rocket Money is our pick for keeping on top of subscriptions. It will find recurring charges you may have forgotten about and (for a fee) even cancel them for you.
Standout benefits: Rocket Money’s bill negotiation service will help you lower recurring fees from streaming services, utilities and more, in return for a percentage of the money you save.
Best for investors: Empower
Empower
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Cost
App is free, but users have option to add investment management services for 0.89% of their money (for accounts under $1 million)
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Standout features
A budgeting app and investment tool that tracks both your spending and your wealth
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Categorizes your expenses
Yes, but users can modify
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Links to accounts
Yes, bank and credit cards, as well as IRAs, 401(k)s, mortgages and loans
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
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Security features
Data encryption, fraud protection and strong user authentication
Pros
- Free to use
- Includes money-tracking dashboard, plus a net-worth tracker
- Syncs to your bank and credit cards as well as other financial accounts
- The Currency blog offers financial planning tips
- Security features include data encryption, fraud protection and strong user authentication
Cons
- Budgeting features aren’t as comprehensive as other apps
- Investment management services come with cost
Who’s this for? Empower is ideal if you’re looking for an investment tool that tracks both your spending and wealth.
Standout benefits: The Empower Budget Planner automatically categorizes various financial accounts, including IRAs, 401(k)s, mortgages and personal loans.
Best for small business owners: GnuCash
GnuCash
Information about GnuCash has been collected independently by Select and has not been reviewed or provided by GnuCash prior to publication.
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Cost
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Standout features
Desktop software that uses double-entry accounting method to tracks users’ bank accounts, income, expenses and investments. It also offers basic accounting functionality for small businesses to manage invoicing, bill payment and payroll
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Categorizes your expenses
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Links to accounts
Allows users to import their bank account information
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Availability
Compatible with Windows, Mac OSX, GNU/Linux, BSD and Solaris, as well as an app for Android users
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Security features
GnuCash is not an online, cloud-based program so no one has physical access to your data; the software runs on your computer and your data lives wherever you store it, such as on your desktop, a hard drive or Dropbox
Pros
- Free to use
- Compatible with most computers
- Good accounting option for startups and small businesses with limited budgets
- Offers helpful data visualization of your budget with graphs and reports
- Available in multiple languages and tracks multiple currencies
- Website offers an extensive FAQ section for user support
- Users can create recurring transactions and set reminders when things are due
- Finder tool allows users to easily search for specific transactions
- Security features include not being an online, cloud-based program
Cons
- Double-entry accounting method used may be more helpful for small business owners versus individuals trying to manage a budget
- Desktop software interface looks outdated
Who’s this for? A desktop application, GnuCash uses a double-entry accounting method that will appeal to small business owners. It also has invoicing, accounts payable and receivable and payroll management tools.
Standout benefits: GnuCash supports accounting in different currencies and multiple languages, making it a winner if you do business internationally.
What does a budgeting tool do?
Budgeting can be a tedious task, but a good budgeting tool can make the process a lot easier. It could be an app, a website or even a calculator.
Hands-on methods, such as manually entering your transactions, take more time but can help you be more thoughtful about your spending.
You’ll also want to decide if you want to pay for a budgeting tool. While the tools on this list are free, there’s a lot to be gained with paid budgeting apps like You Need A Budget (YNAB), which let you set goals, customize spending categories and receive access to educational workshops.
You Need a Budget (YNAB)
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Cost
34-day free trial then $109 per year ($9.08 per month) or $14.99 per month (college students who provide proof of enrollment get 12 months free)
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Standout features
Instead of using traditional budgeting buckets, users allocate every dollar they earn to something (known as the “zero-based budgeting system” where no dollar is unaccounted for). Every dollar is assigned a “job,” whether it’s to go toward bills, savings, investments, etc.
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Categorizes your expenses
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Links to accounts
Yes, bank and credit cards
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Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
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Security features
Encrypted data, accredited data centers, third-party audits and more
How do you create a budget?
Making a budget can be done in as little as five steps:
1. Calculate your net income
Your net income is the amount of money you earn after taxes and can be found on your pay stub and bank statements.
2. List your monthly expenses
Look at your regular monthly spending on things like rent or mortgage payments, utilities, loan payments, insurance, transportation, child care, groceries and subscriptions. Don’t forget to include your contributions to savings, like a 401(k), IRA or high-yield savings account.
Go through and label each as a fixed or variable. Housing costs, insurance, loan payments and gym memberships are fixed, while entertainment, food, travel and clothing are variable. This will help you see where you can cut back.
3. Determine your monthly costs and adjust as needed
Review how much you spend every month in each category. It’s easiest to do this while looking at your bank account and credit card statements.
If your expenses exceed your income, focus on where in your budget that you can cut back. If your income is significantly higher than your expenses, reevaluate what you should be doing with the excess — for instance, putting it in a high-yield savings account.
How to choose a free budgeting tool
First decide what your financial goals are. Are you trying to pay down debts or save for a long term goal like a down payment on a house? This will impact your decision, since these apps all have different strengths and weaknesses.
Then decide what kind of budgeter you are. Do you prefer allocating spending manually or would you rather have your money tracked automatically?
Since all these tools are free, you can test several and see which you prefer.
More on the best free budgeting tools
Goodbudget
Goodbudget is a personal finance app based on the envelope budgeting system, but with a few tweaks to help modernize the method.
Availability: iOS, Android and online
Links to: Users must manually input transactions
Categorizes expenses: Yes
Empower
Empower serves over 18 million customers with a range of financial products and tools, from retirement accounts to investment and cash management accounts. Its budgeting app, Empower Personal Dashboard, can help you better track and adjust your finances by having all your financial accounts in one place.
Availability: iOS and Android
Links to: Bank accounts and credit cards, IRAs, 401(k)s, mortgages and personal loans
Categorizes expenses: Yes, but entries can be modified
GnuCash
GnuCash is an accounting software developed and maintained by volunteers and fits the financial needs of both individuals and small businesses.
Availability: Windows, Mac and Linux
Links to: Bank accounts
Categorizes expenses: No
SoFi Relay
SoFi is a large online bank that offers a range of products, from student loans to mortgages, savings accounts and more. SoFi Relay allows you to create your budget and review spending habits while using the VantageScore® 3.0 credit score.
Availability: iOS and Android
Links to: Bank accounts and credit cards
Categorizes expenses: Yes
Rocket Money
Rocket Money, from the same company behind Rocket Mortgage, has saved its users over $1 billion. It offers more unique features like bill negotiation and help with managing subscriptions.
Availability: iOS, Android and online
Links to: Bank accounts and credit cards
Categorizes expenses: Yes
Budgeting apps FAQs
What can I use instead of the Mint app?
If you’re looking for a new free budgeting tool, there are many options above that fit a wide variety of budgeting styles, like Goodbudget or Rocket Money.
Are free budgeting apps safe?
While free budgeting apps are generally safe, it’s important to be mindful of your financial information and only provide it to sources you trust.
What information do I need to make a budget?
To make a basic budget you need to know your income, determine what spending is essential vs nonessential, and subtract your expenses. You can compare the differences and adjust as needed.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every budgeting tool review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best free budgeting tools.
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Our methodology
To determine which free budgeting tools offer the best user experience, CNBC Select analyzed over a dozen different budgeting tools and looked at their features and user reviews.
We narrowed down our ranking by looking for apps that offer a free service, not just a free trial, and fit a variety of budgeting methods. We wanted variety in the ways users can build their budget, and we ranked each tool based on areas where they excel.
The tools we selected for this ranking are all free and provide users value. For our selection, we also favored budgeting tools that have strong user reviews.
Other factors we looked at included the security features, user customization and illustrative data insight, such as graphs and reports, that are available.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
