The 3 Best Tools for Tracking and Reducing Monthly Bills

When you're trying to reduce your monthly expenses and save money, it can feel a little bit like trying to put out a fire. You can see an immediate problem that needs to be addressed, but panic can set in if you don't know where to start.

Budgeting apps are like a fire extinguisher with a good set of instructions on the side of it. Follow the directions and aim it at the problem.

If you've got your own fire burning in your personal finances or maybe just need to cool down a few embers, here are three excellent apps to help you do so.

1. You Need a Budget (YNAB)

Cost: $14.99/month or $99/year

If you've ever had a friend who was once in debt and now isn't, you've likely heard of the YNAB app. The app has a loyal following among the many people who have used it to help them figure out where their money is going and how to cut unnecessary spending.

The most important thing to know about the YNAB app is that you'll use it to give every single dollar you have a job. This no-dollar-left-behind approach ruthlessly accounts for everything you do with your money, ensuring you know exactly what you're spending your money on, where you can cut back, and how much you can put into paying off debt or adding to savings.

It can take some time to figure out how to use this app, but once you do, it's one of the best budgeting apps for tracking expenses.

2. Pocketguard

Cost: Free for the basic version, $7.99/month, $34.99/year, $79.99/lifetime

If you need extra assistance tracking your bills' due dates and paying them on time, then the Pocketguard app may be your best bet. The app monitors your accounts and subscriptions and sends you automatic reminders to pay them, potentially saving you money on late fees.

The app can create custom spending reports, which is helpful if you have difficulty seeing where you need to cut back on spending. And if you need help lowering some of your monthly bills, Pocketguard can do that, too. The app partners with Billshark, which negotiates with some financial companies to lower your bills. If it successfully lowers a bill, Billshark will take a small cut of the savings.

You can build a budget and set savings goals with Pocketguard, all while receiving helpful reminders to pay your bills and assistance in negotiating lower payments.

3. Goodbudget

Cost: Free for the basic version, $8/month, $70/year

One of the biggest hurdles people encounter when using a budget app is...using the budgeting app. Goodbudget solves this by offering a straightforward app that's easy for anybody to use.

If you don't want an app to have access to all of your banking information, this app may be the way to go. You'll log your spending amounts manually, keeping track of your money in the same way people do using the envelope system. This electronic version of putting your money into specific envelopes helps you keep track of every dollar, allowing you to track spending, saving, and paying off debt easily.

Goodbudget's low price and simplicity make this budgeting app a great choice if you're just getting started with budgeting and want to manage some of the tracking manually.

All of these budgeting apps will go a long way toward helping you know exactly what you're spending and help you reduce unnecessary bills. Each offers a different approach to putting out a financial fire, but they're all doing a great job addressing the problem and giving you the tools to fight it.