YNAB, also known as “You Need a Budget,” is a popular budgeting app built on a zero-based budgeting system. Zero-based budgeting instantly allocates every dollar to work, so you always know where your money is going.
Overall, the app has a 4.8-star rating on the App Store, a 4.5-star rating on Google Play, and an overall great rating from over 80,000 users. Our team has found that this app offers some unique features as a budgeting app, including sinking fund management, loan payment planning tools, and more detailed budgeting features than many similar apps.
Keep reading for an overview of YNAB’s pricing, features, and who can benefit most from this app.
Overview of YNAB
- Main features: Detailed budget report that reveals where you’re overspending
- Perfect for: Zero-based budget creator
- Free version?: no
- Paid version: $14.99/month or $109/year
What is YNAB?
YNAB is a zero-based budgeting app that allows users to put every dollar to work. Link your bank account and your spending will be automatically tracked. From there, you can easily monitor your spending and manage your subscriptions. These expenses are synced with the app (also available offline on your desktop, phone, and tablet). Visually appealing report generation also highlights where you’re overspending, your net worth, budget categories, and more.
YNAB’s unique feature is generous partner sharing. Unlike many budgeting apps that allow one free partner on a limited level, YNAB allows you to share your account with up to 5 guests at no additional charge, making it perfect for family or group budgeting.
Main features of YNAB
Zero-based budgeting system
The YNAB method is essentially zero-based budgeting, where you put every dollar you can get into a specific job. The idea behind YNAB’s budgeting method is that it limits your spending decisions because you know exactly where your money is going and how much is allocated to certain variable categories like groceries or clothing.
Once you’ve allocated each dollar within the app’s expense categories, you can check your plan throughout the month to make sure you’re on track.
Goal setting and category tracking
YNAB is equipped to help users set and track financial goals, such as building a sinking fund for auto maintenance. You can easily set your goals and YNAB automatically calculates how much you need to save each week, month, or year based on when you reach your goals. From there, you’ll be informed and ultimately accountable for whether your savings are on track to stay within your budget and towards your goals.
Our team’s favorite feature is “Snooze.” If something happens in your life, you can snooze and pause your savings goals to get back on track.
One of YNAB’s most useful features is a template tool that helps you achieve your financial goals for life’s biggest moments, like having a baby, renovating your home, or planning a wedding. Pre-built templates are customizable, so you can quickly adjust them to suit your needs. The app then seamlessly integrates them into your budget. If you use YNAB’s Partner Sharing, this is especially useful if you want to share a big event or financial goal with someone else. For example, let’s say your family is saving up for a trip or party.
Account sync and manual entry
Easily manage your money by linking bank accounts, credit cards, student loans, mortgages, savings accounts, and other loans. From there, YNAB automatically imports all your transactions and income. You can also set recurring scheduled transactions to occur automatically, such as subscriptions and rentals.
Alternatively, you can manually enter income, transactions, and other financial information if you prefer.
As a hint: YNAB recommends not adding money until you receive it. So, skip adding upcoming salaries to your budget and stay true to the YNAB method by only adding what you already have.
Reports and insights
Budget reporting is an important YNAB feature that provides visually appealing graphs and pie charts. You can generate reports for three categories: Expenses, Net Worth, and Income and Expenses.
The default report automatically displays all budget categories, but you can easily filter the report by selecting specific categories, such as groceries. Within a category, total spending and average monthly spending are displayed in a pie chart. Click on any category and the app will instantly display a list of transactions that make up that number. {image}
For people looking to change their financial habits, the Income and Expenses report is perfect because it shows your income at the top and your expenses at the bottom, all on one page. You can instantly see your monthly progress, which months you have money left over, and which months you are over budget.
educational resources
We found that YNAB not only has a detailed help center, but also a much broader range of learning resources than most of its competitors. Through its blog, free workshops, and detailed guides, you can learn about budgeting, money management, and debt repayment.
We love the straightforward and educational approach of YNAB guides. Everything is written in a simple language, which makes it a real asset for most users.
YNAB pricing
Free version
YNAB does not have a free version, but it does offer a 34-day free trial.
As a hint: College students can receive one year of YNAB for free upon submission of proof of enrollment.
premium version
YNAB offers one tier with two pricing options. Monthly plan for $14.99 per month and annual subscription for $109 ($9.08 per month).
additional cost
At this time, there are no additional fees for YNAB. However, if you would like to work with someone specifically trained in the ins and outs of the app, you can find individual YNAB certified coaches through the app’s directory.
Pros and cons of YNAB
Strong Points
- Generous partner access (invite up to 5 other users to one account at no additional charge)
- User-friendly loan planner tool helps you visualize the best way to pay off your debt over time
- We offer numerous resources to help you learn zero-based budgeting and debt repayment strategies.
Cons
- One of the most expensive household accounting apps on the market
- Does not provide financial advice or access to financial advisors like some apps
- Budgeting functionality is very complex and may not be suitable for everyone
Comparison of YNAB and other budgeting apps
See how YNAB compares to other popular budgeting apps based on cost, security, partner access, availability, and more.
Recommendation: Who is YNAB best for?
YNAB is perfect for meticulous individuals and families who want to budget together. This is a complex app perfect for detail-oriented users. You can get the most out of this app by using it regularly, adjusting your budget categories, and checking your reports. If you’re looking for a minimalist approach to budgeting, this app is probably not for you.
Who should skip?
YNAB is not ideal for individuals who want more flexibility with their budget. YNAB uses zero-based budgeting, so those looking for other options may find the app limiting.
YNAB doesn’t offer these features, so if you’re interested in subscription cancellation services, detailed financial advice, or access to an investment advisor, you’ll need to consider another app.
Conclusion: Is YNAB worth it?
YNAB is valuable for anyone who does a zero-based budget or wants to take a closer look at their spending and overspending tendencies. Although YNAB is more expensive than many of its competitors, it has great reviews, great detailed spending tracking and reporting, and a unique loan repayment planning tool.
If you want to really take control of your budget, YNAB is a solid choice because it allows you to adjust categories, predict where your money is going, and analyze your spending habits. For those looking for a simpler interface, YNAB may seem overly complex.
FAQ
Is YNAB free?
YNAB is not free, but there is a 34-day free trial. University students can use it for free for one year by submitting proof of enrollment.
Is YNAB better than other household accounting apps?
YNAB has more in-depth features than many budgeting apps in terms of detailed category creation, sinking funds, and zero-based budgeting features. However, this app is more expensive than many of its competitors, so it ultimately comes down to what the user wants.
Is YNAB difficult to use?
Although YNAB is widely considered to be user-friendly, its detailed budgeting features may feel overwhelming at first when compared to more minimalist apps.
Can YNAB help you get out of debt?
yes. YNAB helps you get out of debt by managing your balances, transactions, and upcoming bills in one place, giving you a bird’s-eye view of your finances. The app lets you create a repayment plan using a loan planner tool that helps you visualize how much interest you can save on a particular loan or how much time you can save by adding a little extra to each payment.
Does YNAB connect to my bank account?
YNAB connects to your bank account using MX and Plaid for direct import. You can also set up connections between Apple Wallet accounts. MX and Plaid securely connect your bank account to YNAB and update the app with your recent transactions and balances.
