My Favorite Budgeting Software: You Need A Budget (YNAB) Review

My Favorite Budgeting Software: You Need A Budget (YNAB) Review

When someone finds the world of personal finance, and FI, the first thing they will likely need to do is come up with some sort of budget. This can feel overwhelming if your system of budgeting in the past has simply been checking your account balance and doing some quick mental math.

That's where You Need A Budget, commonly referred to as YNAB, comes in. YNAB is a popular subscription budgeting software. It's specifically designed to help you stop living paycheck to paycheck, pay off debt, and save more money.

For someone on the path to financial independence, the YNAB budgeting philosophy should get along well with many of the concepts you already apply to your financial life.

The YNAB Budgeting Philosophy

The software revolves around four main budgeting rules.

Rule #1: You have to give every dollar a job. Essentially, YNAB believes that when every dollar is intentionally allocated to an expense or a goal, you make your financial life easier to manage. At the end of the exercise, you should have no money left over that needs to be budgeted.

Rule #2: You have to embrace your true expenses. YNAB realizes that not all expenses occur every month. Instead, there are some large expenses that happen throughout the year. Set goals for these large expenses and associate a time when the goal needs to be met. YNAB will let you know how much you need to save each month and keep you on track to reach your goal.

Rule #3: You have to roll with the punches. YNAB doesn’t think your budget should be unchangeable. If something pops up, you can adjust your budget in real-time. You can take money away from one category that still has money in it and allocates it to the overspent expense.

Rule #4: You should only be spending money you earned at least a month ago. This way, you’re never waiting for the next paycheck to pay a bill. Instead, you can live on last month’s income. You won’t have to worry about how to stretch money until your next paycheck or how to pay for expenses that are distributed unevenly throughout a month.

[Editor's note: I think this is the best feature of YNAB. Spending last month's income gives an amazing amount of flexibility and reduces stress. You always know how much money you have to budget and the timing of payments is never an issue.] 

If you like their budgeting philosophy, you may be a good fit to use their software. However, if you don’t like how they believe budgeting should work, you might be better off using other options.

Get started with YNAB today.


You can try out YNAB for free for the first 34 days. Thankfully, YNAB’s free trial is actually 100% free. You don’t have to submit payment information and remember to cancel before the free trial expires if you decide against continuing to use the software. However, that is only true for the desktop version of the software. If you sign up for a free trial through the phone app with iOS or Android, you do have to cancel or your card will be charged due to the way the app stores work.

YNAB currently costs just $6.99 per month according to their marketing. Despite the marketing of a monthly payment, YNAB actually bills you once a year with an $83.99 charge. This does come with a no questions asked money-back guarantee.

YNAB pricing


Unfortunately, YNAB is only offered using the “software as a service” model. This means you’ll have to pay the $83.99 fee each year you want to continue using the software. As someone working toward financial independence, subscription models probably aren’t your favorite types of products to purchase. If you don’t renew each year, you’ll lose access to YNAB and the data you’ve built up in the software.

That said, the software as a service model allows YNAB to continue innovating to make the product better. You’ll get the updates as they happen, so you’ll always be using the latest and greatest version.

Learn more about YNAB.

Related: Mint Review: Is This The Best Free Personal Finance App?


YNAB is budgeting software. Its primary goal is to help you take control of your money. The software offers both desktop and mobile options so you can keep up with your budget wherever you go. In the past, YNAB relied entirely on user input for all transactions. Thankfully, the most recent version of the software allows bank syncing which can save you a ton of time over manually inputting every single transaction.

They offer the tools and knowledge you need to pay down your debt and track your other financial goals. They also offer reporting in the form of pie charts for spending, bar charts for net worth and multi-month income vs. expense reports.

ynab income expense repor

YNAB offers support through a messaging system on their website and live workshops. They also have a forum, help documents, weekly videos, podcasts, weekly newsletters, and frequently asked questions to help you learn the software. Unfortunately, there isn’t a phone number to call for live support.

It’s important to note YNAB doesn’t try to be an all-in-one financial management tool. That means that you won’t be able to pay bills or check your credit score through their software. If you want to see if you are saving enough money for your retirement goals, you’ll need to use another program, too.

Outside of the software, YNAB offers some great classes and blog posts to help you further your financial education and optimize your finances. The blog posts and classes are probably a bit basic for those already well on their path to financial independence. However, they could be great information for someone just starting to turn their financial life in the right direction.

See how YNAB can help you.

Getting Started

Getting started with YNAB is easy. Click “Sign Up” on the home page then enter your email address and a password. That’s all there is to it.

Next, YNAB will take you to their online software app. The first thing they have you do is set a goal for gifts. To set goals, you select a category. Then, on the right side scroll down to the goals section and click “+ Create a goal.” Next, select a goal amount and the date you wish to have the amount of money set aside by. Finally, click OK and the goal is set.

YNAB create a goal step 1

The second thing you do is add an account to the software. You can manually add accounts or link your bank accounts to import transactions automatically. You can add checking, savings, cash, credit card, line of credit, asset (investment) and liability (debt) accounts.

After you manually add or link your accounts to the software, it’s time to start budgeting your money by giving every dollar a job. All you have to do is add amounts in the budgeted column until your remaining amount to be budgeted is $0.00 at the top of the screen. As you spend money, the available column will decrease showing you how much money you have left to spend in each budget category for the month.

YNAB screenshot giving every dollar a job

Next, YNAB asks you to schedule future transactions you know will happen. You can pick the date and frequency of each scheduled transactions to make your life easier. For instance, you can schedule a monthly transaction for your rent payment due on the 1st of each month rather than schedule 12 individual payments. When you schedule transactions, you input the payee, category and amount. You can also add a memo if you need it. If a category doesn’t have enough money to cover a scheduled transaction, the available column will turn orange during that month’s budget to let you know.

Finally, YNAB wants to teach you how to move money from one category to another. To get started, click on a green number in the available column that you want to move money out of. Next, select the amount of money you want to move and which category you want to move it to.

After you’ve completed the tutorial steps above, you have a good handle on how YNAB works. If you have any questions when using the software, click the question mark in the bottom right-hand corner for guidance.

Is YNAB Right for You?

Ultimately, you’ll have to decide if YNAB is the right budgeting software for your situation. The software works great if your idea of budgeting is in line with how YNAB works. However, if you budget using your own methodology, YNAB might not play nicely with your current system.

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My Favorite Budgeting Software: You Need A Budget (YNAB) Review

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ChooseFI seeks to uncover helpful services that help you be financially resilient. However, we may receive compensation, at no cost to you, from the issuers of some products mentioned in this article, including from CardRatings for our coverage of credit card products. Opinions are the author’s alone, and this content has not been provided by, reviewed, approved or endorsed by any of these entities. See our disclosures for more info.

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7 thoughts on “My Favorite Budgeting Software: You Need A Budget (YNAB) Review”

  1. I’m a big time fan of YNAB, but I don’t actually think this review is very strong. You may wish to consider adding screenshots and some links to tutorials. YNAB is great, but there’s a pretty steep learning curve because the software is really powerful. I don’t think this review gives people a feel for what YNAB is really like.

  2. I agree Lisa. YNAB is wonderful and I’ve been using it for 5-6 years now. It’s been a blessing and huge game-changer for our marriage.

    I’ve never seen a review without photos. It’s a bit strange. YNAB definitely takes anywhere from 2-5 months to get really comfortable with it. I actually bought into YNAB before it was subscription based, so it was a one time $60 cost, which I much prefer. That version is awesome and I wish they still offered it. It does not offer auto-import of transactions, but that feature is over-rated, in my opinion. Entering transactions on your phone take about 5-8 seconds and really gets you in the habit of “feeling” every purchase. Even with the subscription monthly price, I feel YNAB is well worth it to see exactly where every dollar is going.

  3. For anyone pursuing FI while using YNAB (the web version), I wrote a FI Forecasting tool that uses your YNAB data through their API.

    Sorry for the plug, but I figure it’s extremely relevant to who might be interested in the union of these two communities.

    I agree with “feeling” the transaction more with manual input, but when you inevitably miss a few transactions or you have a recurring bill that’s always slightly different, I’ve really come to appreciate the automatic entry. Not to mention all the time saved on manual reconciliation.

  4. For someone with a pretty good understanding of our money, budgeting in place, and in the accumulation phase of FI, is it worth spending over 80 bucks a year on this? I use Mint and PC and while Mint and it’s budgeting/transactions aren’t perfect, I make sure everything is perfect going into my spreadsheet each month. Do you guys only suggest paying for ynab if you’re starting out? I can’t justify paying the money when we are already doing pretty decent now.

  5. Caleb, you might want to give it a try only to see if there are any “holes” it can fill in your other methods. Mint is a forecasting tool while YNAB works with the money you only currently have – i.e. you give every dollar you have a job. When new income comes in, you give those dollars jobs. It’s a 34 day free trial, no strings attached. It’s the best money I ever invested in myself!

  6. Within my trial period with YNAB now and don’t know if I’ll keep it. Too many one offs and exceptions that I have to continue looking up in their threads how to handle. I don’t really think the same way they do regarding transfers and payees. But I do need something for my wife and I to share our entering of expenses, and that tells us how much we have left. Any other options out there?

  7. I have heard so many things about YNAB but they do not provide direct import for international financial institutions. Per the email I received from them on 16 October 2019 at 05:43 AM, it is because their third-party partner moved away from supporting banks outside the US and Canada and it’s not in YNAB’s plans for the immediate future.

    I am giving US-based Money Wiz, a platform similar to YNAB, a try. It supports non-US and Canadian banks; however, there appears to be some inconsistency in the connections to EU banks due to the new Open Banking (PSD2) protocol. Money Wiz’ tech support has been very supportive helping me work through the issue.

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