Whether or not you're a fan of Dave Ramsey, it's undeniable that he has positively impacted the financial lives of millions of people with his advice on getting out of debt and his Financial Peace programs.
EveryDollar is a budgeting software created by Ramsey Solutions (Dave Ramsey's company). It directly integrates with the Ramsey money system to help people get a handle on their cash flow. In this EveryDollar review, we'll explore the features and benefits of EveryDollar, as well as some of the drawbacks of this particular budgeting tool.
What is EveryDollar?
EveryDollar uses zero-based budgeting to ensure all financial resources are given “jobs.” This method requires users to intentionally allocate every dollar of their income to budget categories (either spending or saving).
The zero-based method is a fundamental principle of Dave Ramsey's financial philosophy that includes the following step-by-step checklist, famously called the “Baby Steps.”
These seven steps include:
- Save $1,000 for your starter emergency fund.
- Pay off all debt (except your home) using the debt snowball method.
- Save 3-6 months of expenses (in addition to the $1,000) in a fully funded emergency fund.
- Investment 15% of household income for retirement.
- Save for your dependents' college expenses.
- Pay your home off early.
- Build wealth and give.
Within the software, you can indicate which step you're currently working toward. This helps you to focus your cash flow on reaching that next milestone.
Best Features – EveryDollar Review
FREE OPTION + FREE TRIAL OF PREMIUM
It can be difficult to find a free budgeting option these days. EveryDollar has a completely free option that allows you to create a customized budget. However, the free version only allows for manual transaction tracking.
EveryDollar Premium has additional features like linking bank accounts, paycheck planning, and tracking financial goals. You can get a free 14-day free trial, but it's worth noting that you will need to enter your payment card information to start your free trial.
EASY TO SET UP
It's simple and fast to get started with EveryDollar. The software will walk you through each step of the process.
First, you'll input your monthly income sources.
Then, you'll list your expenses, from fixed bills to discretionary spending. EveryDollar provides pre-set categories that cover the most common expenses, but it can be customized for your own financial situation. It also gives you “hints” to help you determine these amounts.
EveryDollar's intuitive interface makes it easy for a new user to set up their budget in minutes.
GOALS-BASED FOCUS
Unique to EveryDollar is the ability to mark specific budget categories as “funds” and link specific goals to that category. For example, you can create a category for your emergency fund, vacation, or a new car purchase.
After setting up your savings funds, you'll be prompted to save each month to meet your target.
If you need more help reaching your financial goals, your Premium subscription includes access to group financial coaching calls.
SHARING
If you budget with a partner, you'll appreciate being able to seamlessly share your EveryDollar budget across an unlimited number of devices. EveryDollar is available as an app as well, so it will sync across your devices and allow you to access your budget from wherever you are.
Fortunately, EveryDollar has recently updated its app to allow partners to each have their own separate login, which is helpful for security (and convenience!) purposes.
It's also worth noting that while you can share your EveryDollar budget, you can only create and manage one single budget per account.
Areas for Improvement – EveryDollar Review
CREDIT CARD LIMITATIONS
If you're familiar with Dave Ramsey's firm stance on not using credit cards, you won't be surprised to hear that EveryDollar's credit card linking is not as robust as other budgeting tools. In fact, you can't link an Apple Card at all, and connections to American Express cards are reported to often not work or break frequently.
In addition, Dave Ramsey has a debit-card-payment-only policy for their subscription, and seems to have become more strict than in the past about this policy citing “security restrictions.” For those who are especially cautious about using a debit card online, this could definitely be a deal-breaker.
STEEP COST
If linking your accounts is important to you, an EveryDollar Premium subscription will cost you $79/year or $17.99/month.
Subscribing to Ramsey+ provides another way to obtain access to EveryDollar Premium, although it only includes 12 months of access with your subscription (even if you continue your Ramsey+ subscription for additional years). It also includes access to Financial Peace University, financial coaching, and Ramsey SmartTax. An annual subscription to Ramsey+ costs $119.99.
MONTHLY BUDGET FOCUS
In EveryDollar, you create a spending plan for the entire month upfront before you receive any money. It's most common for people to get paid biweekly, so this can cause planning issues. The Premium version offers a paycheck planning tool, which can help mitigate the risk of overspending by looking at monthly totals.
In addition, savings funds will show overspent even if you have sufficient funds in the category because you've been saving for months prior. This is an informational issue only, but a limiting factor in having a longer-term view of your money that goes beyond a single month.
NO INVESTMENT TRACKING
Unlike many other budgeting tools, EveryDollar strictly focuses on budgeting and only supports linking a handful of investment accounts (which then requires you to manually adjust transactions to ensure they're not included in your regular budget).
If this is important to you, you'll need a separate tool or method for tracking your investment and retirement accounts.
EveryDollar Competitors
YNAB
You Need a Budget, more commonly known as YNAB, is similar to EveryDollar, as it also utilizes the zero-based budget method. Like EveryDollar, it focuses on giving every dollar a job to be more intentional with your cash flow and reach your goals. Anyone who's used YNAB, though, will admit that there can be a steep learning curve when you first get started.
At a slightly higher annual price ($109/year or $14.99/month), YNAB offers additional features that may be a better fit for those not tied to Dave Ramsey's philosophy. Credit cards are fully embraced by YNAB, and it's just as (or even more) goal-focused as EveryDollar.
Check out our full YNAB review here, or for a direct comparison, take a look at this EveryDollar vs. YNAB Review.
Monarch Money
Those looking for a more comprehensive solution to manage more than just their cash flow should check out Monarch Money. Monarch lets you see a full picture of your financial life, from investments to long-term goals to overall financial health. It's a great solution for couples and families who want to share their budgets. And speaking of sharing, Monarch is becoming a popular tool among financial advisors, who love and embrace it with their clients.
See our full Monarch Money review here.
Simplifi
If you want to embrace EveryDollar's ease of use and full features but at a slightly lower price (especially if you find a discount code!), Simplifi may be the best solution for you. Simplifi was created by Quicken, so even though it's fairly new to the market, it comes from a company with many decades of experience in personal finance apps.
Simplifi offers a step-by-step approach to creating and maintaining a budget, similar to EveryDollar. It offers significantly more bang for your buck by also allowing you to link investment accounts, set goals, and create customized reports.
See our full Simplifi review here.
Final Thoughts on Our EveryDollar Review
EveryDollar is a basic budgeting tool that works especially well for those in the first stages of implementing Dave Ramsey's Baby Steps. Its ease of use and goals-based focus make it a solid choice for those looking to get a handle on their cash flow.
However, EveryDollar isn't without its drawbacks. The cost, credit card limits, and focus on the Dave Ramsey method might be deal-breakers for some, who may be better served using another budgeting software like YNAB, Monarch Money, or Simplifi.
Ultimately, the best budgeting tool is the one that you will use consistently. EveryDollar is worth a try to see if it matches your own personal needs and financial goals, especially if you've already experienced the benefits of participating in Financial Peace University.
What do you think of our EveryDollar review? Are you a Dave Ramsey Baby Steps fan?
Please let us know in the comments below.
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