By Ben LuthiGoodbudget Review: Simple Envelope-Style Money Management
Quick Answer
If you like the envelope budgeting system but don't want to keep that much cash around, Goodbudget could be a solid choice. The app offers both free and paid tiers, giving you the option to budget for free or to get more bells and whistles.
Goodbudget is an app that digitizes the envelope budgeting method, where you allocate money to specific spending categories rather than letting it sit in one general account. The app brings this budgeting system that generally relies on cash to your phone, eliminating the need for physical envelopes and the risks that go along with them.
If you're looking for a budgeting tool that combines structure with flexibility, here's what you need to know about Goodbudget's features, pricing and whether it's the right fit for your money management needs.
How Goodbudget Works
Goodbudget digitizes the traditional envelope budgeting method, where you divide your money into specific spending categories rather than keeping it all in one place. Here are the key features that make the app work.
Digital Envelopes
The app allows you to create separate "envelopes" for different spending categories like rent, groceries, entertainment and dining out. Once you spend the money allocated to an envelope, you can't spend more in that category unless you move money from another envelope.
Expense Tracking
The free version requires you to manually enter each transaction or upload transaction files from your bank. However, premium subscribers can connect their bank accounts through Plaid to automatically import transactions, making it easier to keep your budget up to date.
Flexible Budget Cycles
Goodbudget allows you to choose a budget period that matches when you get paid. Goodbudget supports monthly, weekly, semi-monthly and bi-weekly budgets. Monthly budgets can start on any day of the month, and weekly budgets can begin on any day of the week.
This flexibility helps you align your budget with your actual cash flow rather than forcing you to work within a standard calendar month.
Monthly and Recurring Expenses
Create envelopes for both regular monthly bills and less frequent expenses like car insurance or annual subscriptions. This helps you set aside money throughout the year for costs that don't occur every month.
Household Budgeting
Share your budget with a partner or family member so multiple people can track spending and update envelopes in real time.
Is Goodbudget Free?
Goodbudget has a free version you can use indefinitely, but you won't get access to all the features the app offers. Here's a look at how the free and paid versions differ:
| Free | Premium |
|---|---|
| $0 | $10 monthly or $80 annually |
| 20 envelopes | Unlimited envelopes |
| 1 account | Unlimited accounts |
| 2 devices | 5 devices |
| 1 year of history | 7 years of history |
| Manual expense tracking | Direct import for automatic expense tracking |
| Community support | Email support |
While Goodbudget may not offer a free trial for its premium version, you can request a full refund within 30 days of beginning your premium subscription if you change your mind.
Availability and Ratings
The Goodbudget app is available on your desktop browser, as well as on iOS and Android devices. The mobile app has 4.7 stars across roughly 13,000 reviews on the Apple App Store and a 3.4-star rating over 19,300 reviews in the Google Play Store.
YNAB vs. Goodbudget
Both You Need a Budget (YNAB) and Goodbudget apps use proactive budgeting methods, but they differ in approach, features and cost. Here's a look at how these budgeting apps compare:
| YNAB | Goodbudget | |
|---|---|---|
| Budgeting method | Zero-based budgeting | Envelope budgeting |
| Automatic bank sync | Yes, included with subscription | Only with premium plan; free version requires manual entry |
| Pricing | $14.99/month or $109/year; 34-day free trial | Free version available; premium is $10/month or $80/year |
| Best for | People who want comprehensive features and educational resources, and are committed to active budgeting | People who prefer envelope budgeting and want a free option or lower-cost alternative |
Goodbudget Pros and Cons
Understanding Goodbudget's strengths and limitations can help you decide whether it fits your budgeting needs. Here are the key advantages and disadvantages to consider.
Pros
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Offers a free version: Unlike many budgeting apps, Goodbudget provides a genuinely useful free tier that never expires. This makes it accessible for people who want to try envelope budgeting without committing to a paid subscription.
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Simple approach to budgeting: The envelope method is straightforward and easy to understand, even for budgeting beginners. You allocate money to specific categories and can't overspend without consciously moving funds from another envelope.
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Provides spending reports: The app includes helpful reports like spending breakdowns and income versus expense comparisons. These visual tools make it easier to spot spending patterns and adjust your budget accordingly.
Cons
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The free version is very limited: You only get 20 total envelopes and one account with the free plan, which may not be enough for detailed budgeting. Families or people with complex finances will likely need to upgrade to premium.
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Manual entry required for free users: The free version doesn't sync with your bank accounts, so you must manually enter every transaction. Automatic importing is only available with the premium plan.
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Limited features overall: Goodbudget focuses exclusively on budgeting and doesn't offer investment tracking, bill pay or other financial management tools. You'll need separate apps or tools to handle these aspects of your finances.
Is Goodbudget Safe?
Goodbudget uses 256-bit bank-grade encryption to protect your personal information and stores all data in a secure data center. The company does not sell or rent your data to third parties.
For free version users, security is enhanced because Goodbudget doesn't connect to your financial accounts at all. You manually enter transactions, which means you don't share bank login credentials with the app. Premium subscribers who use automatic bank sync share information with Plaid, a financial data aggregation service that maintains its own security standards.
Should You Get the Goodbudget App?
Goodbudget works well for some people but not others, depending on your budgeting style and needs.
Goodbudget can make sense if you:
- Like the envelope budgeting method and want a digital version.
- Have the discipline to manually update your budget regularly, or are willing to pay for automatic syncing.
- Want a free option to start with, even if it has limited features.
- Prefer a simple, focused budgeting tool without extra financial management features.
Goodbudget might not be right if you:
- Want automatic bank syncing without paying a subscription fee.
- Need a feature-rich free version with unlimited envelopes and accounts.
- Prefer hands-off budgeting where the app does most of the work.
- Want tools beyond basic budgeting, like investment tracking or bill pay.
Before choosing Goodbudget, compare it with other top budgeting apps to find the best fit for your needs and budget.
The Bottom Line
Goodbudget brings the envelope budgeting method to your phone with both free and paid options. Whether it's right for you depends on your budgeting style and cost preferences.
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About the author
Ben Luthi
Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.
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