Hint: It’s a lot.
Marie St. Clare has a unique hobby — budget research. She finds budgets and budgeting fascinating. Marie acknowledges that’s not true for most people, so she wrote some articles on budgeting for the rest of us. Then, she and Josh Trubow collaborated on a series of budgeting webinars. Since Marie has done so much research and has all that budgeting experience, we decided to ask her a few questions about what she learned.
What did you learn about budgeting and budgeting apps?
- “The biggest thing I learned was the importance of finding a system you can maintain. If the software is too unwieldy, you probably won’t stick with it.”
This is not the time to become overly ambitious. If you’re new to budgeting software, or budgeting in general, it makes sense to use software that does what you want, simply and efficiently. To learn more about a few popular budgeting apps, read Marie’s article, Budgeting Apps: We Tested Four, So You Don’t Have To.
People have a lot going on. If something comes up that interferes with their routine, they might drop anything that’s overly complicated, thinking they’ll circle back after the crisis abates. That doesn’t always happen.
- “Planning and organizing when you start will save you time and headaches in the future.”
As you use budgeting software, you will keep reviewing the categorizations to ensure they are still accurate. Take time at the beginning to review the default categories. It will help to rename them to align with your budget and how you think about spending. You don’t want to spend extra time trying to remember how you decided to categorize your expenses. Also, delete categories you don’t use to reduce clutter. This simple review can save you a lot of time in the future.
- “Generally, the first few months are the hardest, then it becomes easier.”
In bucket budgeting, you’ll do most of the work on the front end, as well. You’ll need to establish the purpose of each account you hold, how to fund it and how to spend from it. For example, you may have one account for everyday expenses like groceries, gas, and monthly bills, and another you use only for dining out and gifts. You may pay your mortgage and utilities from one account, and travel expenses from another. Each account may have an associated different funding and spending strategy. You can set up the accounts in whatever way suits you, but the more organized you are at the outset, the easier it will be to maintain and the higher your chance of success.”
What can budgeting software do for you?
- Enable you to customize the software to your specific needs
- Establish alert parameters enabling the system to notify you if your balances are low
- Show you if expenses like entertainment or online purchases have increased
- Ensure that both partners in a couple can see all account activity
- Create custom reports
In return, you must:
- Apply effort upfront (categorizing, inputting data)
- Maintain the accounts
- Be on the same page with your partner
Will my budgeting software become a full-time job?
The simple answer is no, according to Marie. “You don’t necessarily need all the functions available in the software. Some people are thrilled with all the detail these tools can provide, but many people just want to know if they’re on track. You need to decide what is important to you. Once you’ve established your priorities, it’s much easier to customize the software to deliver the reports that will help you the most.”
What type of person benefits most from budgeting software?
“Every type, really. If you’re a meticulous person with a love for detail, you’ll be a fan of the levels of categorization and reports in the software. If you struggle with organization, just being able to see all your accounts and credit cards in one place can help. For most people, the apps provide a welcome insight into their spending. I will say, these apps can be particularly helpful for people with ‘lumpy’ income, like realtors, freelancers, and commissioned salespeople.”
What’s your biggest takeaway on budgeting apps?
“Trying anything new requires effort and perseverance, and changing spending habits is hard. Having the data to make and back up your decisions may help you establish and maintain a budget. Once you’ve done that, you’re one step closer to achieving your financial goals.”
As always, if you have questions about budgets or budgeting software, please contact your advisor.
More budgeting resources:
In early 2025, Marie St. Clare and Josh Trubow collaborated on a series of webinars about budgeting. If you missed them, the webinars were Creating Your Budget, Staying on Track with Bucket Budgeting, and Staying on Track with Budgeting Software.
To read more of Marie’s insights into budgeting software, please see her articles:
- Getting the Most From Your Budgeting Software
- Getting the Most From Your Budgeting Software (Part 2)
- Budgeting Apps: We Tested Four, So You Don’t Have To
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