Our YNAB review showcases a well-known name in budgeting apps. Starting in 2004, the app has a long history of helping people rethink their spending habits to reach their financial goals. YNAB stands for You Need a Budget, and it delivers by offering a unique platform unlike conventional budgeting tools.
YNAB provides a platform unlike any other. While the setup works with many types of budgets, users must remain committed to keeping their finances organized to achieve the best results. We tried YNAB to see what it’s all about. Here’s what we found.
Pros
Excellent for those unfamiliar with budgeting
Excellent for tracking variable income
Useful as a learning tool and a budgeting tool
Account sharing available with up to 5 people
Cons
Requires frequent attention
Experienced traditional budget app users may struggle
Investment tracking unavailable
YNAB Review: Features and Benefits
Comparing YNAB to other budgeting apps is tricky. The platform operates on a zero-based budgeting system, in which you must account for every dollar that comes in and goes out. That fact means adapting can be challenging for long-time traditional budget users. However, the app’s many benefits can make the change worthwhile, provided you’re willing to put in some effort. YNAB offers an extra-long trial period of 34 days to help make sure you get the hang of it through the beginning of the second month—It makes a difference.
- Uses different format than traditional budget apps
- 34-day free trial period
- App requires frequent interactions
- Highly customizable category options
- Helpful online information available
- Works well with variable income and spending
- Zero-based budgeting format
- Age of Your Money function encourages you to save money
- Large and infrequent expenses are easy to budget for
- Has YouTube channel for education and support
- Allows budgeting flexibility on the fly
- Progress bars allow simple financial picture visualization
- Banners notify you of where your attention is needed
About the YNAB Budget App
The YNAB budget app differs from conventional budgeting apps in a number of ways. The most noticeable is evident as soon as you download it from the App Store or Play Store. Instead of using projections to calculate your monthly budget, YNAB requires you to input income and existing money in your bank accounts and then give every dollar a job by assigning it to customizable spending categories.
The app functions on a zero-based budgeting system, meaning each dollar must have something to do, starting from zero and working your way to the end. The method requires you to frequently and manually enter input into the app, which allows you to see precisely where your money is going as it happens.
While that’s excellent for keeping you engaged with your money, it requires significant effort on your part. However, that’s also an excellent way for budgeting beginners to learn what goes into making and sticking to a meaningful personal finance budget.
The app does have plenty of automation, making it far more useful than a simple spreadsheet design. It can track and apply recurring expenses, automatically connect and import data from banks and credit card providers, and issue categories to line items and transactions. Additionally, while its support team consists of tutorial videos and a chat function, those tools are quite helpful.
You must add categories to your transactions when you download the app and import your financial information. The app learns quickly and will remember your input for later use. Using as many spending categories as you can while still being practical will help the app be more useful. However, if you forget a category, it will remind you later so you can adjust.
YNAB Review – YNAB App Ratings
The YNAB app is available for iOS and Android devices, including portable and desktop ones. In fact, setting up your account on a desktop might be helpful, as it offers more visibility and can simplify putting numerous transactions under the proper categories. The app receives 4.8 stars from App Store and Play Store users. Several positive reviews call the app life-changing.
How Much is YNAB?
YNAB costs more than other budgeting apps. However, it also provides more value than many of them, especially for those tired of budgeting using more traditional methods. You can choose a monthly payment of $14.99 or save money by paying annually at $109. Either way, you’ll have 34 days to try the app to see if it works for you.
If you’re unfamiliar with budgeting in general and looking at YNAB as an educational tool, consider paying monthly for a while to make sure you’re ready to give the app and your budget a lot of attention. If you’re looking for a more hands-off approach, Rocket Money is another app listed in our best budgeting apps review that offers a more traditional approach for a lower cost.
YNAB Review: Editorial Rating
Trusted Company Reviews Rating Score for YNAB: 9.4
We rate the YNAB app at 9.4, based on our ranking criteria, and after testing the app for several weeks. As a long-time user of spreadsheets and simple budgeting tools, getting used to the YNAB platform was easier than I expected. Much like other budgeting apps, the startup process of assigning categories to tons of transactions is tedious but worth it.
Once set up, getting a feel for how it works was a snap. In the long run, I might get frustrated by having to tell the app what to do so frequently. However, that’s also the genius behind its concept. It’s an excellent teaching tool as well as a way to track and reduce your spending, if necessary.
| Cost | $14.99 mo / $109 yr |
| Monthly pay available | Yes |
| Free Trial period | 34 days |
| Credit score tracking | No |
| App Rating (App Store/Play Store) | 4.8 / 4.8 |
What We Like
What we like most about YNAB is its potential. Many of the user reviews, including some from former users of other apps, like Mint, stated that YNAB has made a huge and positive difference in their financial lives.
From our perspective, we like the way the Age of Your Money function encourages saving on a monthly and daily basis. The tool allows you to see how long it lasts, from the time you receive it until it’s spent or, at least, assigned to its role. While the app doesn’t have a goal-setting function, the Age of Your Money inclusion sits right on the dashboard and makes an excellent goal-setting objective.
What We Don’t Like
While we like the concept behind YNAB, the zero-based budget platform provides little in the way of net worth tracking. The dashboard allows real-time feedback about your spending. However, it lags behind competitors when trying to get a bigger financial picture.
Additionally, YNAB doesn’t offer solutions for tracking investments. I was able to import data from an investment account, but it simply appeared as another bank account, and the app expected me to assign the balance to a spending category.
YNAB Reviews
YNAB user reviews are excellent. Seventy-eight percent of reviews award the app five stars on Trustpilot for an average score of 4.7. At the Better Business Bureau, the company has received just seven complaints in the past three years, a couple of which mention difficulty connecting to American Express credit card accounts.
Who YNAB Budget App is Best For
YNAB reviews come from a wide variety of users, from budgeting beginners to seasoned budgeters looking for an alternative way to manage finances. Judging by the review score feedback, the YNAB budgeting app seems excellent for just about anybody.
However, using the app to its potential requires frequent interaction with it. For those not used to budgeting in general, it may be asking for too much. On the other hand, if you’re committed to getting a better handle on your money, YNAB might just be the answer you’re looking for.
YNAB Vs. Monarch
Comparing YNAB to Monarch is apples to oranges. While both apps offer practical ways to manage your money and watch your spending, YNAB operates on a zero-based system, while Monarch works on a cashflow-based system.
Learning to operate a budget is easier on YNAB because it forces you to be an integral part of your budgeting activities, such as assigning dollar amounts to your expenses each month. Monarch, on the other hand, is better for those familiar with traditional budgeting and provides a much more in-depth overview of your total financial situation.
YNAB doesn’t allow for things like complex budgeting and investment accounting. However, it works great for those with variable income. While Monarch can handle variable income data, it’s more comfortable handling a stable, even if more complex, budget scenario.
Both apps are excellent at what they do. However, you’ll have to decide which type of budgeter you are and how much feedback you want from your budgeting app to effectively choose between these two.
| YNAB | Monarch | |
| Cost | $14.99 mo / $109 yr | $14.99 mo / $99.99 yr |
| Free Trial | 34 days | 7 days |
| Who it’s best for | Those seeking an alternative to traditional budgeting | Those willing to spend time monitoring their budget using a more traditional system |
Is YNAB Worth It?
Our YNAB review applies to a budgeting app that requires work. That said, the app is worth its elevated price tag if you’re prepared to be involved in making it that way. The instant insights into where your money is going can help you save money both now and in the future. However, only using the app sometimes will yield poor results, making your purchase just another expense.
YNAB Budget App Alternatives
While we like the YNAB budget app and its concept, it may not be right for everybody. For those looking for a traditional budgeting tool and for those who wish to track their investments, Copilot, Simplifi, and Monarch cost less than YNAB and offer tools that allow more functionality for more complex budget situations.
Other options:
- Rocket Money review
- Credit Karma review
YNAB Review Rating Breakdown
| Attribute |
Rating Score 1-10 |
| Cost | 6 |
| Cost variables | 7 |
| Trial period | 10 |
| Features | 8 |
| Setup ease | 8 |
| Ease of use | 7 |
| Average time to effectiveness | 7 |
| Trustpilot review score | 2.7 |
| Other reviews score average | 4.3 |
| Average app rating | 4.8 |
| Editorial opinion score | 8 |
| Total Raw Score | 72.8 |
| Raw score averaged = TCR Rating Score | 9.4 |
Frequently Asked Questions
Is YNAB safe?
What banks link to YNAB?
Source
Image credit: ynab.com
Deane Biermeier
