Budgeting is critical in order to take control of your finances. Even when considering options to become debt free, like debt counselling and debt consolidation, it’s still important to focus on the root problem: Income and expenses.

Creating a rational spending plan that takes into account your financial situation (income flow and expenses) is a great way to avoid becoming overwhelmed by debt and preparing for the future.

A Licensed Insolvency Trustee can help you to budget and achieve financial freedom but there are also many free online budget programs that can assist you in keeping your new budget on track.

Here are some of the top free online tools you can use to budget:

1. Mint

   This is an app that lets you budget and track your expenses. The user can link their financial accounts, including checking, savings, and credit cards, to their Mint account. The information within your Mint profile will update accordingly.

Mint creates your spending categories automatically, so you can keep track of where your money goes on a monthly basis. There are visual tools, including reports and graphs, that display your financial standing and help you plan your budget. You can also use Mint to set retirement goals or create a plan to pay down your debt.

2. You Need a Budget (YNAB) 4

   This is a budgeting system tool that also allows you to keep track of your expenses. Unlike Mint, which simply reports your spending, YNAB 4 also teaches you sound budgeting practises with every purchase or payment.

   YNAB 4 runs on Mac and Windows computers, though you can use iOS and Android apps to sync data and share your budget with other users.

3. BudgetPulse

   This online app does not require you to add your credit accounts. You can track your spending habits and set goals without providing any account information. You keep track of your spending with graphs and charts, and share your financial goals with family and friends.

Final note

With any of these budgeting tools, you will be able to track your spending habits, debts and expenses. This way, you can anticipate your monthly costs and avoid a financial roller coaster. When you overspend in a particular category, like groceries or eating out, you can cover the extra costs by reducing your expenses in other categories, like entertainment, so your expenses remain fairly constant each month.

If you are already in debt, talking to a debt counsellor can help you to secure your financial future and create a working budget.