In this post, I discuss one of my favorite budgeting apps—Tiller. I recommend everyone start using a budgeting app of some kind to track expenses. And Tiller is a great option, especially for those of you comfortable with spreadsheets. Tiller has the best transaction categorization system I’ve seen, and because it’s spreadsheet-based, it lends itself to easily dumping your latest spending breakdown into Hesperian’s planning software Vault. (Note, I have no financial relationship with the publishers of Tiller, but I am featured in their directory of financial professionals using or recommending Tiller.)
The Value of Budgeting
Budgeting should not be reserved just for those of us trying to diagnose where to cut back. It’s simply helpful to know where your money is going. Who knows! You may see something that surprises you or see dollars going to a category that you’d rather spend somewhere else based on what you value in life. As Lord Kelvin put it:
If you cannot measure it, you cannot improve it.
How Does Tiller Work?
- The first step involves connecting your accounts to the app in the same way (and using the same exact secure software) that you did to your Capitect Client Portal so they could feed into your digital financial plan.
- You then set up your own spending categories and assign them to either Discretionary (Wants), Nondiscretionary (Needs), Transfers, Saving, etc., however you break things down.
- Next, you list rules that will allow the system to automatically categorize most if not all your transactions. For example, you might set the keyword “starbucks” to be categorized as “Restaurants”. And you may place “Restaurants” under the general category “Discretionary”, or “Wants” if you prefer.
- It takes a bit of setup to code all the rules for your recurring spending, but once done, you just have to press a button in the spreadsheet (either Google Sheets or Excel) and all new transactions covered by a rule will be categorized for you instantly. Tiller searches keywords in the transaction names flowing in from your accounts. In other budget apps, I’ve struggled to get their algorithm to correctly recognize transactions. Tiller’s text-based, self-setup system is the only system I’ve seen work well.
- Now you can explore your spending with a nice visual dashboard.
I haven’t even touched on the whole slew of alternative templates you can use, many built by the Tiller user community. You can generate amazing visuals and graphs of your finances. You can do a lot more than just budgeting, but much of this you’re outsourcing to your wealth manager already. But you can truly geek out with Tiller if you wish.
Explore Tiller & Your Other Budgeting App Options
You can learn more about Tiller by following this link:
As of September 2024, Tiller costs $79 per year, which I think is reasonable, and you can try it for 30 days free.
Importantly, I use Tiller to manage my own household budget. But try out your options and see what’s right for you. If spreadsheets give you nightmares, there are other budgeting tools:
- Honeydue: Designed for couples (married or not) who manage their finances separately, in testing I had issues with the categorization system, but it’s still free!
- YNAB (You Need A Budget): The premier non-spreadsheet-based budget app in my opinion, requires every dollar be accounted for which aligns with Hesperian’s cash flow planning philosophy but demands discipline when it comes to ex-ante budgeting, cost is about $100 per year paid annually, which is reasonable but a bit more expensive than Tiller
I don’t care what you use, even if it’s your own spreadsheet system or by hand on paper, as long as you’re budgeting somehow—and that it’s fairly accurate. I’ve found that very few people can submit accurate rough budget inputs without a framework or good fundamental tracking.
Interested in a live demo of Tiller or want to discuss your budget in more depth? Just let me know!
All content presented in this article is for informational purposes only. Materials presented should not be interpreted as a solicitation or offer to buy or sell a security or the rendering of personalized investment advice, which can only be provided through one-on-one communication with a financial advisor. The content reflects the opinions of Hesperian Wealth LLC (HW), except where cited, which are subject to change at any time without notice. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All information or ideas provided should be discussed in detail with a financial, tax, or legal advisor prior to implementation.
Investing involves substantial risk, including the potential loss of principal. HW makes no guarantee of financial performance nor any promise of any results that may be obtained from relying on the information presented. HW may analyze past performance, but past performance may not be indicative of future performance.