How to Create a Personal Budget Using a Budgeting App in 2025
Whether you’re trying to pay down debt, save for a big goal, or better manage your monthly expenses, creating a personal budget is one of the smartest financial steps you can take. Thanks to user-friendly budgeting apps, it’s easier than ever to track your income, expenses, and savings goals—all in one place.
Here’s a quick guide to help you build and maintain a personal budget using a budgeting app, plus some top-rated budget apps that might work for you.
Best Budgeting App Picks for 2025
Step 1: Choose a Budgeting App that Fits Your Needs
Most personal budgeting apps offer free trials of all features, and several have a free basic plan. With free trials, testing-driving a few apps is easy before committing to a paid plan—if you even need one. Free or paid, you should be able to find a budget app that fits your needs and price point.
When comparing budgeting apps, consider your preferences and pick the one with the features that best suit your needs.
- Do you prefer manual entry or bank syncing to automate account entries and updates?
- Will you need features for couples or shared accounts?
- What are you primarily budgeting for? Debt payoff, savings goals, everyday spending, or other financial milestones, like buying a home?
- How much guidance you might need in making financial decisions
- Advanced features that allow accountant or financial manager access.
Once you’ve selected your budget app, download it and set up your account. Most budgeting apps have user-friendly step-by-step wizards that make setup quick and easy. However, it will go even smoother if you’re prepared with the information covered in the following steps.
Quit Worrying… Start Budgeting!
In a recent survey, a whopping 64% of Americans reported being more worried about running out of money than about dying! But that doesn’t have to be you! Tracking where your dollars are spent, cutting out waste, and creating automatic savings and bill pay habits is easy with a budgeting app.
Step 2: Gather Your Financial Information
Before setting up your budget, take stock of your financial picture. Having your details organized will make the app setup smoother and more accurate.
For most budget apps, you need to have account information ready for the following:
- Recent bank and credit card statements
- Income details (paychecks, freelance income, benefits, etc.)
- Monthly bills (rent/mortgage, utilities, subscriptions)
- Irregular or variable expenses (car repairs, gifts, travel)
- Debt balances and monthly payments
- Savings and investment contributions
Having needed financial data on hand will help you input realistic numbers into your budget app and avoid surprises.
Step 3: Enter Your Income
Once you’re in the budgeting app, the first step is generally entering your monthly income from all income sources, including:
- Take-home pay from your job
- Freelance or gig income
- Side hustle earnings
- Alimony or child support
- Government benefits or other recurring income
- Investment income or pension payments
If your income varies month to month, your budget app might calculate an income average based on the past few months or use your lowest typical income to avoid overestimating spending allowances.
Step 4: Sync Accounts or Enter Initial Transactions
Many budgeting apps let you connect your bank and credit card accounts so transactions import and update automatically. Others allow manual entry if you prefer a hands-on approach.
If using automated syncing for updates:
- Review each transaction and assign it to proper categories if needed for initial inputs
- It’s smart to spot-check categories occasionally to ensure entries are correct
If entering accounts manually:
- Create a habit of recording purchases daily or weekly
- Set app notifications or reminders to stay consistent
Step 5: Enter and Categorize Your Spending
If your app is automated to sync with your banking data, it will import and auto-categorize transactions for you. If not, you’ll need to enter transactions and assign to categories manyally.
Most budgeting apps offer default categories like “Housing,” “Groceries,” “Utilities,” and “Transportation,” but you can usually customize them to suit your needs. Here’s a good starting point if handling inputs yourself.
Start with fixed expenses—those that stay the same each month:
- Rent or mortgage
- Car payments
- Insurance premiums
- Subscriptions or memberships
Next, move on to variable expenses—those that fluctuate:
- Groceries
- Dining out
- Gas
- Entertainment
- Shopping
After this data is entered, your budgeting app will start averaging your spending information and provide reports that help you understand where you might be overspending and highlight opportunities for savings.
Step 6: Set Budget Limits and Goals
Once your categories are in place and you can see your income, expense and spending reports, it’s time to assign spending limits. This step is where your budget starts to take shape.
Most budget apps let you try a few proven budgeting strategies:
- 50/30/20 Rule: This method allocates 50% of your income to needs like housing and utilities, 30% to wants, and 20% to savings or debt payoff.
- Zero-Based Budgeting: Every dollar of income is assigned a purpose, whether it’s for spending, saving, or investing.
- Envelope Method (many apps now simulate this): Divide your income into “digital envelopes” for each category and only spend what’s in the envelope.
Make sure to include long-term goals in your budget, such as:
- Building an emergency fund
- Paying down credit card debt
- Saving for a vacation or major purchase
Pro Tip: Schedule “Check-Ins” to Stay on Track
Make time for your financial success! Schedule a regular “money check-in” to review your spending and adjust your budget as needed. And don’t forget to make the most of milestones, such as getting a raise or paying off debt, by building the added financial boost into your savings plan.
Step 7: Monitor and Adjust Monthly
The key to successful budgeting isn’t just setting it up—it’s maintaining it.
With spending trackers and updated reports, budgeting apps make it easy to keep your budget mojo working long-term. Here are a few things to check regularly.
- Track weekly progress: Look for categories that are close to going over budget
- Identify trends: Are you overspending on food delivery or impulse shopping?
- Adjust categories as needed: Real life isn’t static—your budget shouldn’t be either
- Celebrate wins: Hitting your savings goal or cutting down an expense is worth recognizing
How to Keep It Going
Automate Where You Can
Most budgeting apps allow you to automate savings transfers, bill reminders, or even investment contributions. These features can help you to stay on track and reduce decision fatigue.
Stay Motivated
Budgeting won’t feel restrictive if you think of it as giving your money a purpose that ultimately benefits you. To keep it fresh, try this:
- Revisit your “why”—whether it’s financial peace of mind, debt freedom, or saving for a dream vacation
- Share your progress with a supportive friend or partner
- Use built-in reports and visual tools in the app to see how far you’ve come
