PocketGuard Budget App Review: Smart Tracking for Overspenders

How PocketGuard Works

PocketGuard simplifies budgeting by automating most of the heavy lifting. After downloading the app and creating an account, you connect your financial accounts through secure data aggregation partners Plaid and Finicity.

The app supports connections to checking accounts, savings accounts, credit cards, loans and investment accounts across more than 18,000 financial institutions.

Once your accounts are linked, PocketGuard automatically imports your transactions and categorizes them into groups. The app analyzes your income and recurring expenses to create a budget framework and shows how much you can safely spend without compromising your financial obligations.

Free Tools

PocketGuard provides several tools to help you manage your money and make better financial decisions. Here are some of the features you'll get with the free version of the app:

• Leftover: PocketGuard's algorithm uses your income, bills, savings goals and ongoing expenses to calculate how much you have to spend each month. This tool can be particularly useful if you struggle with overspending.
• Limited account connections: You can connect financial accounts from up to two financial institutions and also create one manual cash account to track income or balances.
• Direct import: If you connect your accounts, the app will automatically import transactions as they post.
• Bill tracking: You can add and track recurring bills to ensure you never miss a payment.
• Transaction categorization: PocketGuard automatically categorizes your transactions into spending groups, and you can customize how transactions are categorized to fit your needs.
• Limited spending categories: You can create up to two spending categories to track your budget, though this may not provide enough detail for comprehensive budget management.
• Custom rules: You can create up to five custom rules that automatically update merchant names, account assignments, amounts or categories for your transactions.

Premium Tools

While there are some limitations with PocketGuard's free version, you can get access to much more by upgrading to PocketGuard Plus. Here's what you'll get:

• Unlimited account connections: Link as many financial accounts as you need and create unlimited manual cash accounts to track all your finances in one place.
• Unlimited spending categories: Create as many custom spending categories as you want to fit your particular spending habits and get detailed insights into where your money goes.
• Debt payoff plan: If you're working to pay down a loan or credit card, you'll be able to create a structured plan using either the debt avalanche or debt snowball method to achieve your goal by a certain date.
• Subscription tracking: The app scans your transactions to identify recurring subscriptions and other bills, and provides advance notifications in case you want to cancel any before your next charge.
• Unlimited savings goals: You can create as many savings goals as you want, such as a rainy day fund, vacation fund or other savings objectives, and link them to your accounts.
• Bill negotiation: PocketGuard partners with Billshark to help you negotiate lower rates on recurring bills like cable, internet and cellphone service.
• Unlimited custom rules: Create as many transaction rules as you need to automatically categorize and organize your spending without limits.
• Transaction exporting: If you want to create more detailed reports of your spending on your own, you can export your transactions to an Excel spreadsheet or Google Sheets.

Pricing

The basic version of PocketGuard is available for free, though its limitations make it impractical for most users. If you want to upgrade to PocketGuard Plus, there are three options:

• Monthly: $12.99 per month
• Annually: $74.99 per year (equivalent to $6.25 per month, a 50% savings)
• Lifetime: $149.99 one time (though promotional offers as low as $79.99 sometimes appear in the app)

New users receive a seven-day free trial to test premium features before committing to a paid subscription.

Is PocketGuard Free?

PocketGuard offers a free version, but its limitations make it impractical for most users. The free plan restricts you to two financial institution connections and two spending categories.

For users who want basic budgeting without paying a subscription fee, you can manually create a cash account to track income and expenses and then link your most important financial accounts. But depending on the scope of your finances, that may not be enough.

Pros and Cons of PocketGuard

PocketGuard offers several strengths that make it appealing to certain types of budgeters, but it also has drawbacks worth considering before you subscribe.

Availability and Ratings

PocketGuard is available on multiple platforms, making it accessible whether you prefer mobile devices or desktop computers. You can download the app from the Apple App Store or from Google Play for Android devices. A web-based version is also available for managing your budget from a computer.

The app receives strong ratings from users on both major app stores. PocketGuard currently holds a 4.6 out of 5 star rating on the App Store and a 4.2 out of 5 star rating on Google Play.

Is PocketGuard Safe?

PocketGuard uses 256-bit SSL encryption to safeguard your personal data, which is the same level of security that major banks use. Additionally, the app requires a PIN code or biometric authentication (Touch ID or Face ID) to log in, providing an extra layer of protection.

The company partners with Plaid and Finicity, data aggregation firms, to create a secure connection to your financial accounts. Login credentials are encrypted, and PocketGuard doesn't store your banking passwords. Instead, the app gets read-only access, which means it can view your transaction history but cannot move money into or out of your accounts or change any account settings.

That said, no app is 100% immune to security risks. The main vulnerabilities typically come from user behavior rather than the app itself. Using weak passwords, reusing passwords across multiple services or falling for phishing emails can compromise your account security regardless of the app's built-in protections.

Should You Get the PocketGuard Budgeting App?

PocketGuard is best suited for overspenders who struggle with impulse purchases and want a simple, automated way to track their daily spending limits. If you find yourself frequently wondering whether you can afford a purchase or if you regularly overdraw your account, PocketGuard's Leftover feature provides important clarity.

The app is also a strong choice if you're carrying multiple debts and want structured guidance on paying them down.

However, PocketGuard may not be the right fit if you prefer hands-on budget management with detailed control over every category and transaction. The app's strength lies in its automation and simplicity, which means you sacrifice some customization options available in more complex budgeting tools.

Similarly, if you're at a smaller financial institution that doesn't integrate well with Plaid or Finicity, you may experience frustrating connection issues that diminish the app's usefulness. Check whether your bank is supported before committing to a paid subscription.

Alternatives to PocketGuard

Before you give PocketGuard a try, it's worth checking out other budgeting apps that offer different approaches to money management. Here are a handful to consider:

• You Need a Budget (YNAB): This app takes a more hands-on approach to budgeting using the zero-based budgeting method. At $109 annually or $14.99 monthly, it's more expensive than PocketGuard but offers greater control and customization for users who want to actively manage every dollar.
• Monarch Money: At $99.99 annually, Monarch Money offers budgeting tools, spending insights, customizable dashboards and reports and collaboration with loved ones and even financial professionals. The interface is sleek and works well on both mobile and web platforms.
• Honeydue: Designed specifically for couples, this fully free app allows partners to link joint and individual accounts while controlling what they share. Features include spending limits, bill tracking, expense splitting and in-app chat. The app operates on optional tips of $1 to $10 monthly.
• Goodbudget: This app uses the envelope budgeting method with virtual envelopes. The free version provides 20 envelopes and one year of history but requires manual transaction entry. Premium costs $10 monthly or $80 annually and adds unlimited envelopes, automatic imports and seven years of history.

Your Budget, Your Call

PocketGuard delivers on its core promise of showing you exactly how much money you have available to spend after accounting for bills, savings and essential expenses. The automation eliminates much of the tedious work involved in traditional budgeting, and the debt payoff planner provides valuable guidance for reducing outstanding balances.

But the app's limited free tier means you'll almost certainly need to pay for PocketGuard Plus to get real value from the service. At $74.99 annually, it's reasonably priced compared to competitors, but it's not the cheapest option available.

Even so, if you're a chronic overspender who needs that daily spending reminder or someone tackling multiple debts who wants a structured repayment plan, PocketGuard's subscription cost may be worthwhile.

Before you sign up, though, take some time to research other top budgeting apps to ensure you get the best possible fit for your financial goals.