Tracking your spending is one of the first steps to improving your financial habits. Expense tracker apps simplify this process by categorizing transactions and offering insights into spending patterns. While some apps to track your expenses also include budgeting tools, their primary function is to help users monitor and analyze expenses.
After reviewing multiple options, these are the top choices:
- Best Expense Tracker Apps
- Best for planners: Quicken Simplifi
- Best for strict budgeting: You Need a Budget (YNAB)
- Best for beginners: Goodbudget
- Best for over-spenders: PocketGuard
- Best for small business owners: QuickBooks Online
- Best for employees’ business expenses: Expensify
Best for Planners: Quicken Simplifi
Cost: $5.99 per month. There is no free trial, but a refund is available within the first 30 days.
Features: Provides a spending plan that updates in real-time, helping users track financial goals. Reports can be customized based on income, spending, and savings.
Expense Categorization: Yes, with modification options.
Account Syncing: Supports bank accounts, credit cards, investments, and loans.
Availability: iOS, Android
Security: Uses 256-bit encryption for financial data transmission.
Pros
- Syncs with various accounts, including investments.
- Generates detailed financial reports.
- Tracks refunds and monitors credit.
Cons
- No free version.
- Bill payment feature not available.
- Data from Quicken cannot be imported.
Best for Strict Budgeting: You Need a Budget (YNAB)
Cost: 34-day free trial, then $109 per year or $14.99 per month. Free for college students with proof of enrollment.
Features: Uses a zero-based budgeting method where every dollar is allocated to a category.
Expense Categorization: No.
Account Syncing: Supports bank accounts and credit cards.
Availability: iOS, Android
Security: Data encryption, accredited data centers, and third-party audits.
Pros
- Helps users manage debt.
- Syncs financial data across devices.
- Offers educational resources and personalized support.
Cons
- Higher cost compared to other apps.
- Requires a time investment for setup.
Best for Beginners: Goodbudget
Cost: Free for up to 20 envelopes; $10/month or $80/year for unlimited envelopes.
Features: The envelope budgeting method helps track expenses manually.
Expense Categorization: Yes, but it requires manual entry.
Account Syncing: Not available.
Availability: iOS, Android, web version.
Security: Uses 256-bit SSL encryption.
Pros
- Free option available.
- Supports couples in managing shared expenses.
- Provides money management courses.
Cons
- Requires manual data entry.
- No automated syncing with financial accounts. a time investment for setup.
Best for Over-Spenders: PocketGuard
Cost: Free version available; PocketGuard Plus costs $12.99 per month or $74.99 per year.
Features: The “In My Pocket” feature calculates the amount of money available to spend after bills, goals, and necessities.
Expense Categorization: Yes, with modification options.
Account Syncing: Supports bank accounts and credit cards.
Availability: iOS, Android
Security: Uses encryption, PIN codes, and biometric authentication.
Pros
- Tracks spending limits in real time.
- Syncs with multiple accounts.
- Includes bill payment tracking.
Cons
- Higher cost for premium features.
- Occasional miscategorization of transactions.
Best for Small Business Owners: QuickBooks Online
Cost: Free 30-day trial, then tiered monthly plans starting at $17.50.
Features: Tracks business expenses, invoicing, bill management, payroll, and reporting.
Expense Categorization: Yes.
Account Syncing: Supports bank accounts, credit cards, and third-party apps like PayPal and Square.
Availability: iOS, Android, web.
Security: Uses industry-standard encryption and access controls.
Pros
- Offers various plans based on business needs.
- Syncs with financial institutions and payment processors.
- Provides real-time financial dashboards.
Cons
- Higher subscription fees.
- Some users report interface issues.
Best for Employees’ Business Expenses: Expensify
Cost: This app is free for up to 25 SmartScans per month. Paid plans start at $5 per month for individuals and $9 per user per month for businesses.
Features: Allows employees to scan and submit receipts for reimbursement. Includes mileage tracking and automatic credit card import.
Expense Categorization: Yes, customizable.
Account Syncing: Supports bank and company credit cards.
Availability: iOS, Android
Security: Two-factor authentication and compliance with privacy regulations.
Pros
- Free plan available.
- Reduces manual entry with SmartScan.
- Syncs with accounting software like QuickBooks.
Cons
- Some users find the interface less intuitive.
- Paid plans are required for unlimited scans.
Expense Trackers vs. Budgeting Apps
Though they share some features, expense trackers focus on logging and categorizing spending, while budgeting apps manage both income and expenses. Many apps combine these functions, allowing users to monitor spending and create financial plans.
Expense tracker and budgeting apps often overlap, but they have key differences. Budgeting apps usually help you track your income (the money coming in) and expenses (where the money goes). Strictly speaking, expense tracker apps focus on categorizing costs to help you understand your purchasing behavior. But in practice, many expense tracker apps offer budgeting features and vice-versa.
How do expense trackers work?
Expense trackers vary based on the app or system you’re using, but their main purpose is to help you track and categorize your expenses from different accounts. They offer an overview of where your money is going, whereas budgeting apps are designed to help you manage your spending.
How To Create a Practical Budget?
Making a budget can be done in as few as five simple steps:
Calculate Your Net Income
First, determine how much money you make each month. Your net income is the total amount of money you earn after taxes. Moreover, it can easily be found on the pay stub you receive through your employer.
List Your Monthly Expenses
Next, look at your monthly costs. Regular monthly expenses include rent or mortgage payments, utility bills, insurance, transportation, child care, loan payments, groceries, dining, household goods, travel, phone, streaming subscriptions, and memberships. Your savings contributions, such as those in a 401(k) or high-yield savings account, are also included in this category.
Label the Monthly Expenses as Variable or Fixed
Keenly go through your list of monthly regular expenses and label each as a fixed or variable cost. Fixed expenses, such as rent, insurance, or loan payments, are the same each month. Variable expenses, such as dining, travel, and clothing, change from month to month.
Count the Average Monthly Costs for Expenses
Determine how much you spend on each expense per month and simply add them all up. It is convenient to do this step while looking at your bank account, debit, and credit card statements from the past month.
Make Adequate Adjustments Depending on What Your Budget Reveals
Compare your average net income to your monthly expenses to see where you stand. If your expenses exceed your income, this means you should focus on finding items in your budget that you can cut back on (or eliminate altogether). On the other hand, if your income is higher than your expenses, make sure you put those excess funds to good use. They’ll earn more interest in a high-yield savings account than your checking account. But you might also want to consider increasing your contribution to your 401(k), making bigger payments on your debt, or investing for a future expense.
Conclusion
Tracking expenses helps identify spending habits and areas for improvement. These apps offer tools to simplify financial management, whether for personal use or business needs. Choosing the right app depends on individual preferences, budgeting style, and required features.
