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EveryDollar.com and YouNeedABudget.com (YNAB) are the two most popular personal finance websites on the Internet. Each website has its own distinct approach to personal finance and budgeting, and each website has become a household name among budgeters, financial planners, investors, students, and the general public. This article will compare and contrast these two websites.
What is EveryDollar?
EveryDollar is a budgeting app that helps you plan your budget in a way that is simple, easy, and stress-free. You can check how much money you earned during a given month, how much money you saved, and other such details. It will simplify your budgeting and help you decide what things to spend your money on every month. You can use the basic budgeting features of EveryDollar for free, but if you want to have access to your bank accounts in real-time, it will cost you $129.99 per year for an EveryDollar Plus subscription after a 14-day free trial.
What is YouNeedABudget?
You Need A Budget helps people manage their money better, and allows them to make better financial plans for the future. This budgeting software uses a zero-based budgeting approach, where you give each dollar a specific purpose. That purpose could be to pay off debt, save or invest, or any of many other things. YNAB costs $84 per year for a two-month trial. There are no free versions of YNAB. YNAB has a very strong user base that absolutely loves the way the service works and how it helps them to manage their money.
YNAB gives you four simple rules that will help you budget effectively.
Give every penny that you spend a specific purpose. This means that you will need to take all the money that you receive each paycheck and put every penny you receive in a designated account.
Second, budget the money you actually spend on it. You can set goals for things that cost money and that you need it later, like a holiday gift fund or paying for a vacation or having your credit card refunded. It's okay to plan out a savings plan each month to help you save money for a future goal.
Third, be flexible. There are several things that you can do with the money you have, but be flexible. It's okay to change your spending habits by adding or subtracting money to a category in your budget if that enables you to stretch your money further than you make. Do you need to have your car repaired unexpectedly? If your car needs to be repaired, you can put a bigger cushion in your budget by cutting back on restaurant spending, for example.
Fourth, become wise with your money. It's okay to not spend all of your money the second you receive it, it's okay to have some breathing room.
How are they different?
EveryDollar is very easy to use. It takes only a few minutes to set up your budget, assuming you know exactly how much you want to spend in each category. It is completely ad free, so you won't be bombarded with ads like some other free budgeting software.
Creating a budget is easy with EveryDollar. Just click a button and it'll take you to a simple form that will tell you how to budget your money. When you first sign up for an account at EveryDollar, you'll be taken through a step-by-step guide that shows you how to budget your money for some common spending categories. Afterward, you can refine your budget to get the balance in each category down to zero.
Their focus is on budgeting only. It's not like any other budgeting software that offers all the fancy features that other budgeting software offers. You don't have to worry because they will only help you to make a better budget.
But, the paid version is very limited and offers very little. You can sync your expenses automatically, but paying $129.99 for a year of use may not seem like much. Its free version is limited as well. You'll have to manually enter transactions, which could be a problem for some budgeters.
On the other hand, YNAB gives you motivation because it sets financial goals for you, and the dashboard helps you make financial decisions to reach them. You can see your budget and your current spending in one place and create detailed reports to show where you spend money.
When you first sign up for YNAB, you'll be greeted with a quick tutorial that will help you get your finances in order. It'll walk you through adding all the different accounts that you have (checking, saving, credit card), and showing you what your starting balances are for each account. Similar to budgeting with EveryDollar, you'll then divide your money into different categories in order to reach zero.
There aren't any investment features in this app. It might not be a huge deal breaker if all you want is just budgeting software; people who want to track their investments should look elsewhere.
You might have some difficulties getting started using the app. There are not many ways to contact customer service because you can only use the live chat feature or a contact form to get in touch with them.
Who is Each Service Best for?
If you love being very detail-oriented and you want to see how your daily or monthly budget grows over time, YNAB is for you. It provides you with a great way to track how much money you have left over after each payment. It allows you to track all of your expenses and decide whether you're meeting your financial goals.
EveryDollar is the best option for people who are new to budgeting and who want something simple to start with. If you're a fan of Dave Ramsey, this is a great app to use because you can learn the Baby Steps while you're using it.
Both apps are good for budgeting. EveryDollar is simpler and more straightforward than YNAB, but YNAB is more advanced and offers a lot of features. Just keep in mind what services are suitable for your needs before choosing which platform is the one.