Why I Choose Monarch Money Over YNAB
As a financial coach, I've had the opportunity to work with numerous budgeting apps, including Monarch Money and YNAB (You Need a Budget). While both apps have their strengths and weaknesses, I've found that Monarch Money is the superior choice for my clients and myself. In this comparison, I'll outline the pros and cons of each app and explain why I prefer Monarch Money.
Pricing
Both Monarch Money and YNAB offer similar pricing, with a yearly subscription fee of around $100. They also both offer a 30-day free trial, allowing users to test the app before committing to a subscription.
User-Friendliness
Monarch Money has a more user-friendly interface, making it easier for new users to get started. The app's simplicity and intuitiveness reduce the learning curve, allowing users to focus on budgeting and tracking their finances. In contrast, YNAB has a steeper learning curve, which can be overwhelming for some users.
Aesthetics
Monarch Money's dashboard is more visually appealing and organized, providing users with a clear overview of their financial situation. The app's reports and data are also more comprehensive, giving users a better understanding of their spending habits and financial progress. YNAB's interface, on the other hand, is more spreadsheet-like and can be overwhelming, especially for those who are new to budgeting.
Learning Curve
While both apps require some learning, YNAB's extensive features and customization options make it more challenging to master. Monarch Money, on the other hand, has a more gradual learning curve, making it easier for new users to get started.
Budgeting Features
Both apps offer similar budgeting features, including budgeting, tracking, and reporting. However, Monarch Money's reporting feature is more comprehensive, allowing users to filter and customize reports to suit their needs.
Net Worth Tracking
Monarch Money allows users to track their net worth, including assets such as investments, real estate, and vehicles. This feature provides users with a more complete picture of their financial situation, enabling them to make more informed decisions. YNAB, on the other hand, is primarily designed for cash flow management and does not offer net worth tracking.
Reporting
Monarch Money's reporting feature is superior, providing users with a clear overview of their financial situation. The app's reports are customizable, allowing users to filter and analyze their data in various ways. YNAB's reporting feature is more basic, but still useful for tracking income and expenses.
Comparison of Wab and Monarch Budgeting Apps
Customization and Flexibility
Wab and Monarch both allow for customization of categories and accounts, but Wab offers more flexibility in this regard. Wab also allows for the use of emojis in categories, which can make budgeting more engaging and fun. Monarch, on the other hand, is more limited in its customization options.
Budgeting Process
Wab uses a more active budgeting approach, requiring users to assign funds to categories as soon as income is received. Monarch, on the other hand, uses a zero-based budgeting approach, where users assign funds to categories based on expected income, without considering what is actually available in the account.
Rollover of Funds
Wab has an automatic rollover of funds from one month to the next, while Monarch's rollover capability is not automatic and can be turned on or off by the user.
Flexibility and Adaptability
Wab is more flexible and adaptable, allowing users to adjust categories and accounts as needed. Monarch, on the other hand, is more rigid and requires users to stay within the parameters set by the app.
Active Budgeting
Wab actively manages the budget, tracking and adjusting as income and expenses change. Monarch, on the other hand, is more passive, requiring users to actively monitor and adjust the budget.
Limitations
Wab can be more labor-intensive, requiring users to actively budget every paycheck. Monarch, on the other hand, can be more forgiving, allowing users to overspend or not track expenses closely.
Goals
Wab is designed to help users stay within budget and avoid overspending, while Monarch is designed to help users manage their finances and achieve their financial goals.
YNAB Features
YNAB offers a range of features, including monthly budgeting, custom parameters, funding calculations, multiple budgets, login sharing, syncing funds, and real-time tracking. These features enable users to create a customized budget that suits their needs and financial goals.
YNAB Advantages
YNAB's approach forces users to set a budget for the month, which can be beneficial for those who need discipline. The app also allows for detailed customization of budget parameters and provides funding calculations, making it easier to save for yearly expenses or syncing funds. Additionally, YNAB enables users to create separate budgets for personal and business accounts or for individual family members.
YNAB Disadvantages
YNAB requires discipline and may not be suitable for those who struggle with budgeting. The app also has limited flexibility, making it difficult to transfer funds between accounts or budget categories. Furthermore, YNAB does not have a rollover feature, which means that users must reconcile their budget manually if they miss a month.
Monarch Features
Monarch offers a range of features, including paycheck budgeting, limited customization, and single budgeting. These features enable users to create a budget that suits their needs and financial goals.
Monarch Disadvantages
Monarch has limited flexibility, making it difficult to transfer funds between accounts or budget categories. The app also lacks a rollover feature, which means that users must reconcile their budget manually if they miss a month. Additionally, Monarch does not handle credit card debt well and may not be suitable for those trying to pay off debt.
Budgeting App Comparison: Monarch vs. YNAB
Goals and Priorities
When it comes to budgeting, my clients' primary goal is to save at least a month's income. Monarch's advantage lies in its ability to easily set a budget and track progress, making it easier for users to achieve their financial goals. Wab, on the other hand, takes a more passive approach, offering flexibility and trend analysis.
Trend Analysis and Reporting
Monarch provides detailed trend analysis and reporting, enabling users to identify overspending or underspending and make adjustments to their budget. YNAB, on the other hand, has limited trend analysis, focusing primarily on income and expenses.
Forecasting Expenses
Monarch can forecast expenses based on income and budget, enabling users to plan for the future. Wab, on the other hand, has limited forecasting capabilities, requiring users to budget only after income hits their account.
Budgeting Philosophy
Monarch encourages users to assign every dollar a job, eliminating surplus. Wab, on the other hand, allows for budgeting without assigning every dollar a job, which may lead to surplus.
App Adoption and Ease of Use
Monarch is less hassle and easier to adopt for new users, making it a more accessible option for those who are new to budgeting. Wab, on the other hand, requires more effort to adapt, making it more suitable for users who are already familiar with budgeting apps.
Conclusion
Both Monarch Money and YNAB have their strengths and weaknesses. While YNAB offers more customization options and a more active budgeting approach, Monarch Money's user-friendly interface, comprehensive reporting, and net worth tracking features make it the superior choice for my clients and myself. Ultimately, the right budgeting app depends on individual goals, priorities, and budgeting philosophy. A good budget is essential for effective use of any budgeting app, and one-on-one coaching and video tutorials can help create a good budget before selecting an app.