My #1 Must-Have Personal Finance App

If you’ve got access to a smart phone (and if you’re a living, breathing adult, you probably do), then you’ve got access to a mountain of different personal finance apps claiming to make managing your finances better, easier, or faster. Because you can access an app from your smart phone anytime, anywhere, you really can stay completely up to date on your finances in real time. And, there are now apps aimed at almost every aspect of personal finance, including those which help you manage investments, budget better, and meet your savings goals.

While one app may not be perfect for everyone, today I’m breaking down the number 1 app I use and love (and could not function without) that helps me manage my finances and stay on budget. Let’s get to it!

Envelopes Budget Manager

Envelopes Budget Manager is my ultimate favorite—could not live without it—app to manage my budget. If you like the idea of using cash envelopes, but are worried about carrying all that cash around, this app is for you. You can find it in the app store here.

(You can see what it looks like in the screen shot above. In the screen shot above, it’s the one in the dead center, labeled Envelopes).

Envelopes Budget Manager is an app that lets you create virtual cash envelopes.

After you create your envelopes, you can then “deposit” money into each envelope. You aren’t putting any real money in the envelopes—all the money stays in your actual bank account. The app just lets you apportion the money in your bank account among virtual envelopes, so you don’t have to carry real cash envelopes around.

Here’s how to make this app work for you:

So, let’s say you have $1,000 in your bank account. First, create envelopes for your categories: Mortgage, cell phone, groceries, eating out, fun money, etc. Then, distribute your $1,000 among those envelopes, until you’ve distributed all $1,000. Use a zero-based budget to help you figure out how to allocate among categories.

Once you’ve created your envelopes and “funded” them, it’s time to put your budget in action. Each time you spend, use the app to manually deduct that amount from your virtual envelope. When you do so, you’ll know exactly how much you have left to spend in any given category.

With this app, everything is manual. Nothing is connected to your actual bank account and nothing is automatic. You may hate that, and if so, this app is not for you. I personally love it, because it makes ME be in control of managing my money.

And part of being in control of my money, is knowing how much I have in the bank at all times. This app forces me to always be aware of what’s in the bank.

And here’s how: At the top of your list of envelopes is your “Balance.” The Balance tells you how much is distributed across all your envelopes. In our example above, your Balance would be $1,000. In the pic above, you can see my balance as of this writing was $4,696.78.

Every day, I make sure the Balance in my app matches the balance in my bank account. If it doesn’t, then I know I’ve forgotten to withdraw something or add a deposit to an envelope, or that something is off somewhere.

Yes, I check my bank account balance at least once a day. You can’t change what you don’t measure.

One of the things I love about this app is that at a moment’s glance, I know exactly how much I have to spend in any given category. I don’t have to find an envelope or rifle through it counting the cash. I don’t have to run back home and grab an envelope if I don’t have it on me.

I’ve even developed a pay day routine centered around this app. On each payday, I create a zero-based budget. Then on each payday, I “deposit” the amount of my paycheck into my “Paid” virtual envelope. Then, I distribute my paycheck among my virtual envelopes according to my zero-based budget.

I even keep track of my sinking funds this way. Sometimes, I keep the sinking funds in my checking account (I am not tempted to dip into them for other things). But, sometimes, I move the money out of my checking account.

Some additional things to know about this app:

• It’s only available for iOS. If you don’t have an iPhone, you’ll want to explore other budgeting apps like Every Dollar, Good Budget, YNAB, or Mint. I’ve never personally used any of those, but tons of my readers say they love each one.

• There is a one time fee of $7. 1000% worth it. The best $7 I ever spent.

  It’s Your Turn!!

  Do you have any questions about using this app? Leave them in the comments below and I will do my best to answer them!

  Do you have a favorite app for managing your finances? Let me know what it is in the comments below!