Are you a person who already uses spreadsheets but is curious about automated budgeting tools? Choosing between a spreadsheet-connected tool like Tiller or a zero-based budgeting app like YNAB or EveryDollar might seem like a simple choice at first. It’s not, and here’s why.
Many people report that certain tools simply “clicked” for them, and helped them get deeper into budgeting than ever before. If you don’t take stock of what’s working for you now, and what you might be missing, you might end up picking a shiny new tool that sounds cool, but doesn’t actually help you stick with budgeting.
Here are the tradeoffs and decision points for someone who is already comfortable with spreadsheets and uses them for personal and family budgeting. These thoughts should be useful whether you are managing debt or trying to save money, or even if you have a more complex situation. Just be sure to speak to a professional anytime your finances have a potential impact on your taxes, benefits, or insurance.
Once you understand the tradeoffs, you’ll want to weigh them based on your own habits and preferences. There is no one right way to organize and approach budgeting beyond the broad principles of 1) keeping track of your income and spending, 2) paying bills on time, and 3) living within your means.
Decide what you actually need from your budgeting tool and keep the setup simple enough to stick with over the long term. Here are some additional tips.
- Decide what you need in a budgeting tool. A spreadsheet solution like Tiller allows you to see your transactions in a spreadsheet and make easy edits. With a spreadsheet, you have the flexibility to make it your own and build whatever custom dashboards and reports you could want. Zero-based budgeting apps like YNAB and EveryDollar add more structure on top of the raw numbers. You’ll want to ask yourself if you mainly want a feed of the numbers to help you get started, or a more full-blown personal finance app to guide you.
- Consider zero-based budgeting. Historically, spreadsheets are used for keeping track of things that have already happened. It’s a way to keep your finger on the pulse of where your money is going. However, several popular budgeting apps are centered around the concept of zero-based budgeting, where you plan out every dollar in advance and assign it to a specific spending category. This helps you avoid running out of money and makes it easy to pay yourself first. It is possible to implement this system yourself in a spreadsheet, but some people find it easier to stick with when the tool naturally enforces this great habit.
- Understand your own bandwidth. For the baseline spreadsheet user, Tiller is a great way to automate the pulling in of your financial transactions. This saves a lot of the manual bookkeeping that many lower tech spreadsheet users are already doing. Two other ways that Tiller saves you time are by remembering your regular categories and giving you an easy summary of your spending for any range of dates. You might want to go with a zero-based budgeting app if you want even more guidance and less set up.
- Keep it simple. If you’re in doubt, start with the smallest change that seems likely to make your life better. New technology like Tiller and popular budgeting apps offer a real step up from the most basic of manual budgeting, but they do add layers of complexity that aren’t needed by everyone. By taking the smallest step first, you are retaining the option to add these technologies later if you see a specific need.
Whichever tool you choose to use for budgeting, the most important decision you’ll make is to keep at it. The beauty of a personal budget is that you can adapt it to fit your lifestyle and personal goals. And if you find a particular tool is making your life harder, you can always try a different one. The only thing that really matters is that your budget fits into your life and helps you stay in control of your finances.