EveryDollar and Goodbudget are both personal finance management tools designed to help users track their spending, budget effectively, and achieve their financial goals. While they share similar objectives, they have distinct differences in features, pricing, and user experience. In this comparison, we’ll explore the key aspects, benefits, and drawbacks of EveryDollar and Goodbudget to help you determine which may be better suited to your needs.
Overview of EveryDollar:
EveryDollar is a budgeting app created by personal finance expert Dave Ramsey. It promotes the concept of zero-based budgeting, where users assign every dollar of income to specific expense categories. Key features of EveryDollar include:
Zero-Based Budgeting: EveryDollar encourages users to allocate every dollar of income to predetermined expense categories. This approach helps prioritize spending and ensures alignment with financial goals.
Manual Transaction Entry: Users must manually input transactions, which provides greater control and accountability but can be time-consuming compared to automatic syncing with bank accounts.
Goal Tracking: EveryDollar allows users to set and monitor financial goals, such as saving for emergencies or paying off debt. Visualizing progress toward these goals can help users stay motivated.
Expense Tracking: Users categorize expenses and monitor spending habits to identify areas of overspending and make necessary adjustments.
Free and Paid Versions: EveryDollar offers both free and paid versions. The free version provides basic budgeting features, while the paid version (EveryDollar Plus) offers automatic bank transaction syncing for a fee.
Overview of Goodbudget:
Goodbudget is a budgeting app based on the envelope system, where users allocate funds to virtual envelopes representing different expense categories. Key features of Goodbudget include:
Envelope Budgeting: Goodbudget allows users to create virtual envelopes for different expense categories, such as groceries, utilities, and entertainment. Users allocate funds to these envelopes based on their budget, and spending is tracked against these allocations.
Manual Transaction Entry: Similar to EveryDollar, Goodbudget requires users to manually input transactions. This approach provides users with control and awareness of their spending but may require more effort and time.
Envelope Sharing: Goodbudget offers a feature called “Envelope Sharing,” which allows users to share envelopes and budgeting responsibilities with family members or partners. This feature facilitates collaborative budgeting and ensures transparency and accountability.
Expense Tracking: Users can track expenses against their allocated envelopes to monitor spending habits and identify areas where adjustments may be needed.
Free and Paid Versions: Goodbudget offers both free and paid versions. The free version provides basic budgeting features with limitations on the number of envelopes and accounts, while the paid version (Goodbudget Plus) offers additional features and increased envelope and account limits for a subscription fee.
Comparison:
Now, let’s compare EveryDollar and Goodbudget based on several key factors:
Budgeting Approach:
EveryDollar follows a zero-based budgeting approach, where users allocate every dollar of income to predetermined expense categories. This approach helps users prioritize spending and ensure alignment with financial goals.
Goodbudget utilizes the envelope system, where users allocate funds to virtual envelopes representing different expense categories. This method helps users visualize and control their spending within each category but may require more manual effort in managing envelopes.
Transaction Entry:
Both EveryDollar and Goodbudget require manual transaction entry, which provides users with control and awareness of their spending habits. However, this approach may be more time-consuming compared to automatic syncing with bank accounts.
Collaborative Budgeting:
Goodbudget offers a unique feature called “Envelope Sharing,” which allows users to share envelopes and budgeting responsibilities with family members or partners. This feature facilitates collaborative budgeting and ensures transparency and accountability.
EveryDollar does not offer specific features for collaborative budgeting, although users can manually share budgeting information with others if desired.
Cost:
EveryDollar offers both free and paid versions. The free version provides basic budgeting features, while the paid version (EveryDollar Plus) offers additional features for a subscription fee.
Goodbudget also offers both free and paid versions. The free version provides basic budgeting features with limitations on envelope and account numbers, while the paid version (Goodbudget Plus) offers additional features and increased limits for a subscription fee.
Envelope System vs. Zero-Based Budgeting:
Goodbudget’s envelope system provides users with a clear and visual way to manage their spending within specific categories. Users allocate funds to envelopes and spend from those allocations, helping to prevent overspending in each category.
EveryDollar’s zero-based budgeting approach ensures that every dollar of income is assigned to predetermined expense categories, leaving no money unallocated. This approach encourages users to prioritize spending and ensure alignment with financial goals.
Which is Better?
Determining which platform is better, EveryDollar or Goodbudget depends on individual preferences, budgeting style, and financial management needs:
EveryDollar may be better suited for users who prefer a structured, zero-based budgeting approach. It’s ideal for individuals or households looking to prioritize spending, track expenses, and ensure alignment with financial goals through a systematic budgeting process.
Goodbudget is suitable for users who prefer the envelope system and want a visual way to manage their spending within specific categories. It’s beneficial for individuals or families looking to control spending, track expenses, and collaborate on budgeting with family members or partners.
Final Conclusion on Everydollar vs Goodbudget: Which is Better?
Ultimately, the choice between EveryDollar and Goodbudget depends on whether users prefer the zero-based budgeting approach or the envelope system, as well as the specific features and functionalities that align with their budgeting style and financial management needs. Users may also benefit from trying out both platforms to determine which one best suits their preferences and goals.
