Last Updated on June 18, 2021
This month I took the time to get to know a new-to-me budgeting tool – Goodbudget. This program is available both as a website and as an app. In this article, I will break down how to use it, how to best fit it into your lifestyle, and the pros and cons of the program.
Contents
What is the Goodbudget App? How Does It Work?
Goodbudget uses the concept of digital “envelopes” to set up and help your budget to function.
These are intended to be a place where you can keep your money digitally rather than in cash. The budget is supposed to be set up with intention and allow you to make the most of your money and spend it in a way that aligns with your financial goals. If you are unfamiliar with them, check out my other article that gives more information about what digital envelopes entail.
How do I use Goodbudget?
First, Goodbudget makes it very simple to set up an account. You simply visit the website goodbudget.com or download the Goodbudget app on your mobile device to get started.
You can sign up for free or pay for Goodbudget Plus for $7 per month or $60 per year ($5 per month). Below is a side-by-side comparison of what you receive with each version of Goodbudget. Create a username and password, pick your plan, and get started!
Once you have your account set up, you can go into the Envelopes tab, click Add/Edit, and start adding envelopes that you will use throughout the month, such as Groceries and Gas.
With the free version, you have up to 10 regular envelopes you can create, plus ten more in the More Envelopes section. With the paid-for version, you have an unlimited amount.
Make sure to press the purple “Save Changes” button. This should allow you to see the envelopes on your home page, and it will sync to your app or website, depending on where you initially set the envelopes up.
This will also sync with another device on the free version or up to 4 more devices on the paid-for version. You can make adjustments at any time to both the name and amount per envelope on any device.
Here is an example of 4 envelopes I added – you can title these to the specifications of your budget.
After you have set up your envelopes, it is time to set up your accounts. You have the opportunity to add checking, savings, cash, credit card, and debt to your accounts to help give yourself a full picture of where you stand financially.
To do this, go to the accounts tab on your homepage and click on Add/Edit.
Use the Accounts tab to add checking, savings, credit card, and debt accounts you would like to keep track of.
You then have the option to add your accounts and their current balance. You are limited to one account in the free version, but in the paid-for version, you can list unlimited accounts, credit cards, and debts.
Make sure to save what you have entered; then, it should return you to the homepage. The homepage should always have the most recent version of the data you entered.
Next, you will add your income. Click on the plus sign “Add Transaction” tab at the top left of the homepage.
Click on Income in the window that pops up, then fill out the remaining information. If you pay for the version you have, you can also denote which account received this income (assuming you have more than one).
You can also opt to have this income added automatically on the same day every pay period if you choose.
This is listed on the “Schedule this” check box.
Once you have entered it all, click ‘Save’ or ‘Save and New’ to update your budget. It should show up on the Transactions list on the homepage, along with any other changes you have made.
Make sure to add transactions regularly so that your budget is up to date.
The next step is to fill your envelopes.
To complete this step, click on the top left envelope “Fill Envelopes” icon. This will take you to a new window where you will have the option to fill the envelopes from New Income or Unallocated.
Because we just added income and haven’t used it yet, this is money that should be used to fill the envelopes.
You can schedule this to occur automatically, or you can fill the envelopes yourself during each budget period.
You can then choose to Add All, Set All, or No Change from the drop-down menu. Add all allows the budget to roll over to the next month, while Set all will start the envelopes at the same amount every month.
Under the title of each envelope is an option to specify which you choose for each individual option if that is something you’d like to denote.
Make sure all your money is allocated before you leave this page. If you have too much leftover, give it a specific purpose or save it for the future. If you don’t have enough money, consider where you can cut down on costs to keep yourself from spending more than you make.
Press Save, and now it should return you to the home page, where you will be able to see your filled envelopes and the transaction list.
Filling your envelopes will help ensure that you are able to track your money and spend less than you make.
Once you have your digital envelopes set up, now you need to be diligent about tracking your spending throughout the month.
To do this, click the purple plus sign Add Transactions button at the top left of the screen. You have the options of Expense/Credit, Transfer, Income, or Debt Transaction. Expense/Credit is for anything you are paying to someone, such as a bill or shopping money.
Make sure to choose the correct envelope or envelopes that you want the money spent to be tracked to, and you can even choose which account you paid out of if you need to.
Transfer is available to move money from one envelope to another in the case that you may have overspent or a bill was larger than you originally estimated. ‘Debt transaction’ is a place for you to track the debts and credit cards that you have.
So What’s Reporting Like In GoodBudget App?
Goodbudget also has a Reports tab at the top of the webpage and the bottom of the app that gives you more information about how you are spending and the status of your progress. This is very helpful in making big changes if you generally struggle with budgeting.
The ‘Help’ tab offers more information about how to use the website and app itself, while the ‘Learn’ tab offers courses on learning how to budget and make good financial choices. This part of the website is a wealth of information that is free and available to anyone willing to take the time to learn more.
What is great about Goodbudget?
One of the positive things I enjoyed about Goodbudget is that they offer a free version. This is great because if you are unsure whether or not you want to fully commit to this app, you can try it out without spending money. Although it does only give you limited use, it is enough to figure out the process and determine whether or not you like the format.
Another positive attribute of Goodbudget is that they offer courses, articles, and podcasts specifically to help you learn more about budgeting and managing your money. The best part? It’s free! This type of content is desperately needed – many people may start the budgeting process but don’t have the tools to continue.
Unlike other apps, Goodbudget really tries to support people who need more than a budget. This supports the people that need to learn how to best handle their money. The program seems to recognize that people will not stay motivated by just the budget, and they have made a program to help people succeed with their money.
To access this awesome resource, all you have to do is click on Learn in the website, or More → Learn the Goodbudget Way on the app to gain access to months of free coursework.
Goodbudget also offers a detailed help section with videos if you are struggling with how to get started and use their program. Under the Help tab, there is a User Guide where many videos and topics are listed, as well as Forum Support, where you can ask questions to the Goodbudget community.
Is The Paid Version Of GoodBudget App Better?
If you are willing to splurge on the paid-for version, Goodbudget is a one-stop-shop to keep track of as many financial accounts as you’d like. For example, you are able to list unlimited envelopes and accounts – which is a great help when trying to set up a budget and watch the status of your debt, savings, and credit cards.
It is also nice that you are able to track it on five devices and that it will keep your history for up to 7 years. That is a great resource to have in the future. But these benefits may not be for everyone. You must decide if this is enough for you.
What challenges might you face with Goodbudget?
One of the major negatives of this program is that to get the full benefits, you have to pay for the opportunity. Especially if you are struggling with making ends meet, this may be challenging for some people.
If you feel that you want to be successful with Goodbudget, you may consider completing one month for free and then saving up the money in your budget to purchase the program either monthly or yearly. Planning ahead will help you be successful in this process!
Another negative is that it was not as user-friendly as it initially seemed to be. If I had not spent a good hour trying to learn more about how to utilize Goodbudget, I would not have understood the program.
I first attempted to use it without the instructions but was not successful and had to use the videos provided. If this program is right for you – definitely use the built-in instructions to ensure your success!
A third negative is that although you can list as many accounts as you’d like in the paid version or only one in the free version, there is no way to sync your account to this program. This was a real downer for me. I want to free up my time and automate as much of my life as possible.
For example, some other budgeting apps offer the option of syncing your accounts so that as soon as you spend money, it shows up on the app in order for you to budget it appropriately. While this may not be necessary for everyone, many people find this a convenience that helps them to budget more efficiently.
Even though you cannot sync the accounts, you can import your transactions, and Goodbudget offers step-by-step instructions on how to complete that process if it is something you are interested in.
Importing transactions is not automatic and would depend on you downloading information from your bank in a file format specified by Goodbudget in order for it to work.
What’s the bottom line on the GoodBudget App?
Overall, for a free budgeting app, Goodbudget is fairly user-friendly and a great way to get an idea of how you are spending. If you are motivated to live your life on a budget, this is an app that you can commit to that will help you keep track of where your money is going each month.
This program is beneficial for individuals and small families who are trying to live life on a budget. You should consider taking a month or two to get to know this program before deciding if it is ultimately right for you.
If it is not for you, you can always go to the My Household tab and click on “Close Household.” This will delete all your data and your account. The hope, though, is you will find budgeting success while using this app.
What questions should I consider before determining if Goodbudget is right for me?
I believe that everyone can benefit from budgeting. If you are unsure about whether or not this is the best program for you, however, here are some things to consider before deciding to start:
- Do I currently budget? Would my system be improved by using Goodbudget instead if I currently am?
- If I am not currently budgeting, would Goodbudget give me inspiration to budget?
- Do I have the time it takes to learn about making better financial choices by using Goodbudget’s resources?
- If I pay for Goodbudget, will I utilize it appropriately to get the most value for my money?
- If I do not use Goodbudget, how will I ensure that I practice positive financial habits such as spending less than I make and getting my money into savings, paying off debts, and building wealth?
Consider these questions on your own and then with a spouse or accountability partner. Figuring out the best method for budgeting for you is the best way to make sure that you will follow through on budgeting.
In conclusion, Goodbudget is a great budgeting program that could allow you to find success with your money – but you will still have to invest time and energy (and maybe money!) into this program. You can keep quite a bit of information in one place, which is a positive to making financial growth and major changes happen!
Make sure to give yourself time to properly use the app, at least 2-3 months, before making a final decision about it. This will allow you to see in real-time, and with others in your life, if the program is right for you and if it can really make a difference in your life. Here’s to your future budget!