5 Tips on what to look for in a budget app

Spending less and saving more is a financial goal that many people make at the start of a new year. But just as you get there you need a little work – and a little self-discipline.

To help you get over both of those things, a budget app is a great place to start. Apps can set your budget for you faster, track your spending habits, alert you when you’re near your limits and hold you accountable for reaching your savings goals. And, as you go, you can take a quick look at your budget.

With countless budget apps on the market, however, just picking one can look a bit daunting. To help you, CNBC Select explained some of the standalone features we found when reviewing the best budget apps out there.

Here are 5 features to look for in your next budget app.

Double check where you can access the app and whether it is compatible on different devices before applying for one.

For example, the budget apps we considered to be the best are available both in the App Store (for iOS) and on Google Play (for Android).

When it comes to budget apps, fortunately there are many on the market cheap to use. Our top choice would be Mint for its high-quality reviews and for giving consumers a complete view of everything from revenue, expenses and savings goals, to credit score, investments and their net worth.

Before choosing a free app, however, please note that these usually come with limited features or a handful of in-app ads that you may need to watch.

It may feel inconvenient to pay for a budget app, but sometimes the high-end services whose cost of apps is based on the monthly or annual membership fee may be worth it. Just make sure they have a free version or a free trial that you can try before you put money down.

Most budget apps connect to your bank accounts and credit cards and track your income and purchases from there. There are others, however, that require you to submit your transactions manually, which can be time consuming and difficult to keep up with.

Look for a budget app that syncs with your accounts or offers both options so you can change them if you want.

Basic budget apps will sort your expenses into preset categories so you can see where and how much to spend on things like food, transportation, etc.

While built-in categories usually cover the basics, it’s nice to have an app that lets you make your own or customize the names. Name a category after your pet, for example.

As with any financial product you use online, make sure you know about its safety and security features. The best budget apps offer protection like multi-factor authentication to verify your identity, encrypted data that gives you codes to access your information and biometrics like Touch ID and Face ID.

A budget app can help you see your complete financial picture wherever you are.

Whether you have financial secrets on your 2021 list or not, consider trying out a budget list with one or more of these five features to see how you spend money and what you could save.