YNAB, otherwise known as “You Need a Budget,” is a popular budgeting app built on the zero-based budgeting system. Zero-based budgeting assigns every dollar a job immediately, so that you always know where your money is going.
As a whole, this app is well-received with a 4.8-star rating on the App Store and a 4.5-star rating on Google Play, giving it an overall fantastic rating from over 80,000 users combined. Our team found that it offers several unique features for a budgeting app, such as sinking fund management, a loan payment plan tool and more detailed budgeting features than many similar apps.
Keep reading for an overview of YNAB’s pricing, features and who could benefit most from this app.
YNAB at a Glance
- Key feature: Detailed budget reports that reveal where you’re overspending
- Best for: Zero-based budgeters
- Free version?: No
- Paid version: $14.99 per month or $109 per year
What Is YNAB?
YNAB is a zero-based budgeting app that helps users give every dollar a job. It automatically tracks your spending once you’ve linked your bank accounts with it. From there, you can easily oversee your spending and manage subscriptions as these expenses sync with the app (which can be used on desktop, phone or tablet — even offline). Its visually appealing report generation also highlights where you’re overspending, your net worth, your budget categories and more.
A unique feature of YNAB is its generous partner sharing. Unlike many budgeting apps that allow one free partner at limited tiers, YNAB lets you share your account with up to five guests at no additional cost, making it ideal for family or group budgeting.
Key Features of YNAB
Zero-Based Budgeting System
The YNAB Method is essentially zero-based budgeting, where you give every dollar coming in a specific job. The idea behind the YNAB budgeting method is that it limits spending decisions because you know exactly where your money is going and how much you have allotted to specific variable categories, such as groceries or clothes.
Once you’ve assigned each dollar within the app’s expense categories, you can check your plan throughout the month to make sure you’re staying on track.
Goal Setting and Category Tracking
YNAB is well-equipped to help its users set and track financial goals, such as building a sinking fund for car maintenance. You can easily set your target goal, and YNAB automatically calculates how much you need to save each week, month or year based on when you want to meet it. From there, it’ll remind you, within your budget, whether you’re on track to save for your goal, ultimately keeping you accountable.
A feature our team particularly likes is “snooze.” If life happens, you can snooze any of your target savings goals to put them on pause while you get back on track.
One of YNAB’s handiest features is its template tool, which helps you hit financial goals for life’s biggest moments, whether that’s planning for a new baby, a home renovation or a wedding. The pre-built templates are customizable, allowing you to tweak them quickly to meet your needs. Then, the app seamlessly integrates them into your budget. If you use YNAB’s partner sharing, this is particularly useful for sharing a big event or financial goal with others.
Account Syncing and Manual Entry
You can link your bank accounts, credit cards, student loans, mortgage, savings accounts and other loans to make it easy to stay on top of your money. From there, YNAB automatically imports all of your transactions and income. You can even set up scheduled, recurring transactions to run automatically, such as subscriptions or rent.
Alternatively, you can manually input your income, transactions and other financial information if you prefer.
Pro tip: YNAB recommends not adding any money until you’ve received it, so skip adding an upcoming paycheck to the budget and add only what you already have to stay true to the YNAB method.
Reporting and Insights
Budget reports are a key YNAB feature that provide you with visually appealing graphs and pie charts. You can generate reports in three categories: spending, net worth and income vs. expenses.
The default report automatically shows all your budget categories, but you can quickly filter it by selecting a particular category, such as groceries. Within one category, a circle graph shows your total spending and your average monthly spending. You can then click on any category, and the app will instantly display a list of the transactions that make up that number.
For those looking to change their financial habits, the “Income vs. Expense” report is perfect, as it shows your income at the top and your expenses at the bottom, all on one page. You can quickly see how you’re doing each month, which months you end up with leftover money and which months you are over budget.
Educational Resources
Not only does YNAB have a detailed help center, but our team found it to have far more extensive learning resources than most of its competitors. Through its blog, free workshops and deep-dive guides, you can learn about budgeting, money management and debt payoff.
We like the straightforward, educational approach of YNAB’s guides. Everything is in simple language, making it a real asset for most users.
YNAB Pricing
Free Version
YNAB doesn’t have a free version but does offer a free 34-day trial.
Pro tip: College students can redeem one year of YNAB free after providing proof of enrollment.
Premium Version
YNAB offers one tier with two pricing options: a monthly plan at $14.99 per month and an annual subscription of $109 ($9.08 per month).
Additional Costs
At this time, YNAB doesn’t have additional costs. However, you can independently seek out a YNAB-certified coach through the app’s directory if you want to work with someone specifically trained on the app’s ins and outs.
YNAB Pros and Cons
Pros
- Generous partner access (invite up to five other users on one account at no extra cost)
- User-friendly loan planner tool helps you visualize the best way to pay off debt over time
- Offers a significant number of resources to help you learn zero-based budgeting and debt pay-off strategies
Cons
- One of the most expensive budgeting apps on the market
- Doesn’t provide financial advice or access to financial advisors like some apps
- Budgeting features are extremely involved, which may not be for everyone
YNAB vs. Other Budgeting Apps
Take a look at how YNAB compares to other popular budgeting apps based on cost, security, partner access, availability and more.
Recommendation: Who YNAB Is Best For
YNAB is best for meticulous individuals or families looking to budget together. It’s an involved app that will suit detail-oriented users best, as you’ll get the most out of this app if you’re diving into it regularly, adjusting your budget categories and reviewing its reports. If you’re looking for a minimalist approach to budgeting, this app probably isn’t for you.
Who Should Skip It
YNAB isn’t ideal for individuals who want more flexibility with their budgeting. YNAB uses zero-based budgeting, so those seeking other methods may feel constrained by this app.
You should consider another app if you’re interested in subscription cancellation services, in-depth financial advice or access to an investment advisor, as YNAB doesn’t offer these features.
Bottom Line: Is YNAB Worth It?
YNAB is worth it for zero-based budgeters and those looking for a deep dive into their spending and where they tend to overspend. While it is pricier than many of its competitors, YNAB has outstanding reviews, exceptional in-depth spending tracking and reports and a unique loan repayment planning tool.
If you like being hands-on with your budget, YNAB is a solid choice, as you can tinker with categories, forecast where your funds will go and analyze your spending habits. For those seeking a simpler interface, YNAB may feel overly complicated.
FAQs
Is YNAB Free?
YNAB isn’t free, but it has a 34-day free trial. College students can redeem one year free by submitting proof of enrollment.
Is YNAB Better Than Other Budgeting Apps?
YNAB is more detailed than many budgeting apps in its in-depth category creation, sinking funds and zero-based budgeting features. However, the app is more expensive than many of its competitors, so it ultimately depends on what the user is seeking.
Is YNAB Hard to Use?
YNAB is widely considered user-friendly, although its detailed budgeting functions may feel overwhelming at first compared to more minimalistic apps.
Can YNAB Help You Get Out of Debt?
Yes, YNAB helps you get out of debt by keeping your balances, transactions and upcoming bills in one place, so you have a bird’s-eye view of your finances. The app can create a paydown plan for you with its loan planner tool, helping you visualize how much interest you’d save or how much time you’d save on specific loans by adding a bit more to each payment.
Does YNAB Connect to Bank Accounts?
YNAB connects to bank accounts using MX and Plaid for direct import. You can also set up a connection between Apple Wallet accounts. MX and Plaid securely connect your bank accounts to YNAB and update the app with recent transactions and balances.
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