GoodBudget – A Comprehensive Review

Building a budget doesn’t have to be complicated. There are many ways to create a budget that works for you. One method is the envelope system, where you divide your cash into different envelopes for different expenses.

Goodbudget, previously known as Easy Envelope Budget Aid, takes this concept and brings it into the digital world. It provides a website and a mobile app that allow you to allocate your finances. This is a safer option than keeping physical envelopes of cash hidden somewhere in your home.

Get the iOS or Android app for convenient budgeting on the go. All you need is an email address and a password to sign up. Your account will sync between the app and the website, making budgeting easy and efficient no matter where you are.

What You Need To Know About GoodBudget

Goodbudget puts a digital twist on the envelope budgeting method. Instead of physical envelopes, you create digital “envelopes” for your expenses.

For example, let’s say you set aside $200 for your electricity bill and $100 for dining out. Goodbudget keeps track of the money in each envelope. When you spend money from a category, it subtracts that amount from the envelope. Once the money in a category is used up, you can’t spend any more from that envelope. You can choose from pre-labeled envelopes or create your own. Goodbudget helps you organize and track your expenses across multiple devices.

It’s difficult for many households to break even with their spending and earnings. Budgeting itself may not solve all your financial problems, but controlling your spending can help. Is the envelope method the most effective way to budget? Let’s find out.

A Closer Look at How It Works

Goodbudget provides digital envelopes for both monthly and annual expenses. Start by adding your financial accounts, like checking, savings, or credit cards. Then, create customized envelopes for your planned expenses. Whenever you spend money, update the envelopes to reflect where the funds went.

Using our previous example, if your electricity bill for the month is $172, you would add the transaction and select the electricity bill envelope. The money will be subtracted from the $200, leaving $28. This indicates you have $28 left over for the next month’s electricity bill. You can also choose to move that money to another envelope.

Each envelope is color-coded to show its status. Green means you still have money left, while red means the envelope is empty or over budget.

Wait, I might be getting ahead of myself. Let’s start with signing up and setting up your account.

Setting Up a GoodBudget Account

Creating a GoodBudget account is easy, just like most online accounts nowadays.

1. Go to the GoodBudget website and click on the large, orange “SIGN UP” button.
2. Enter your email address, password, and choose a plan (free or premium).
3. Check the “I agree to the Terms of Use” box and click “Get Started”.
4. You should now be on your GoodBudget Dashboard. To add your personal accounts, go to the “ACCOUNTS” tab and click the Add/Edit button there.
5. Type in a name for your account, such as “Checking” or “Savings”. If you have a premium account, you can also add credit cards.
6. Once you’ve added the account name and balance, click “Add”.
7. When you’re done adding accounts, click “Save Changes”.
8. Now go back to the “envelopes” tab and start creating categories for your budget. You’ll have envelopes for short-term/monthly expenses and envelopes for annual expenses.
9. Add a new envelope when needed, enter the budget amount, and click “Add”. When you’re finished, click “Save Changes”.
10. Now it’s time to add your income and expenses. Click on the “Add Transaction” icon to enter each transaction individually or upload a CSV file from your bank account. Freelancers with varying incomes might find it easier to enter transactions one at a time.
11. After filling in the information, click “Save”.
12. Once you have your transactions entered, you can start filling the envelopes. Click on the “Fill Envelopes” icon to allocate the necessary amount to each envelope. You can do this one by one or all at once.
13. Remember to save when you’re done!

Congratulations! Your GoodBudget account is set up and ready to use. The key is to stick to your budget and not overspend in any category.

Pricing Plans

GoodBudget is free, but it also offers a premium plan with extra features. Both versions allow you to log in on desktop and mobile devices, adjust your budget, schedule transactions, and receive email notifications.

You can easily import your bank account information using a CSV file, making things more efficient. Both plans also provide graphs and charts to help you visually track your earnings and spending habits.

Here’s a chart to compare the two plans:

The free version of Goodbudget has some limitations, but it doesn’t force the average user to upgrade to the Plus plan. You can access it on two different devices, which is ideal for a married couple managing their finances together. However, it’s important to note that if you want to monitor both bank account and credit card spending at the same time, you’ll need to consider the paid option.

For those with larger budgeting needs, being restricted to a single account and a maximum of 10 envelopes in both the monthly and annual sections can be a bit annoying. If you have multiple budgets that need balancing, you may want to opt for the Plus plan, which offers unlimited envelopes, accounts, and priority email support.

What Other Users Have To Say

Goodbudget receives praise from both experts and users, with an average rating of 4 out of 5 on most sites. The iOS app, Goodbudget Budget Planner, has a rating of 4.7 out of 5. Some users even claim it’s the most used app on their iPhones. Thebalance.com ranked Goodbudget as the sixth best budgeting app, particularly recommending it for couples.

However, not all reviews are as positive. Some users gave it a 2 out of 5 rating, stating that it’s not as comprehensive as they initially thought. They claim that it becomes confusing as their income numbers increase. PCWorld gave it a 3.5 out of 5 primarily because Goodbudget doesn’t sync up with bank accounts and may be too confusing for those who find budgeting difficult.

The Good

Having used Goodbudget myself, I can confirm that it offers a positive experience. The app is incredibly easy to set up and navigate, providing a straightforward system to budget my expenses. You can break down your budget by expense and view personalized reports based on your spending. In short, it does what it promises.

While I haven’t tried the Plus plan yet (because I’m being frugal), I believe that if it improves on what the free version offers, which it seems to do, I would rate it just as highly.

Having access to my budget directly from my iPhone is incredibly helpful. It allows me to compare the cost of any potential splurges to what I currently have in my “entertainment” envelope. This prevents me from going over my budget. And yes, it works for Android devices too.

The Bad

One downside of Goodbudget is that it doesn’t sync up with financial institutions. This means you have to manually enter any money that enters or leaves your bank account. For those who prefer a more automated system, this can require too much daily attention.

The free version doesn’t include enough envelopes for everyone, which could be a turn-off for people with strict budgets. Paying for a budgeting system might be seen as counterproductive.

Another issue is that not everything is controllable through the mobile app. You can only edit budgeting periods or listed accounts if you’re logged into the web browser version. This might be tedious for those who don’t always have access to a computer.

Final Thoughts

All in all, I’d say Goodbudget is decent at best and a bit tedious at worst. It’s simple and intuitive, but it does require more effort compared to other budgeting programs available. It’s especially helpful for beginners or those who prefer a hands-on approach to managing their money. The Plus plan does solve some of the problems with the Free plan, but it doesn’t address the biggest one – the lack of financial sync.

In conclusion, Goodbudget is a great budgeting solution for beginners and married couples on a budget. However, there are other options available that offer a more comprehensive and all-in-one budgeting experience, with extra features to assist with the heavy lifting that Goodbudget may not be able to handle.