Effort Level: High Setup, Low Maintenance
| Metric | Stat |
| Cost | ~£4/mo (Hosted) or Free (Self-Hosted) |
| Privacy | Local-first (No selling my data) |
| Previous Failed Attempts | MoneyDashboard, Excel, “Hope” |
I have been looking for a tool to get a grip on my spending for years. I previously used MoneyDashboard (RIP) and standard banking apps, but they all suffer from the same flaw: Autopsy vs. Diagnosis. They tell you what you did spend, not what you can spend.
I found ActualBudget via a Reddit thread, and it is the first tool that has stuck. It is open-source, fast, and privacy-focused—one of those rare tools I am happy to pay for because I know I am the customer, not the product.
The Concept: Digital Envelopes
ActualBudget uses “Envelope Budgeting.” It sounds simple, but it requires a shift in mindset.
- The Old Way: “I have £1,000 in the bank.”
- The Actual Way: “I have £200 in the ‘Groceries’ envelope, £100 in the ‘Car’ envelope, and £0 in the ‘Beer’ envelope.”
It sounds restrictive, but I find it statistically comforting. I don’t have to guess if I can afford something; I just check the envelope. It forces you to decide what sort of life you want to live and ensures your spending matches those priorities (or highlights where you are failing).
My Setup Strategy (Or: How I should have done it)
It took me two months of messing around to get this working right. If I were starting today, this is the protocol:
1. Define the Categories
Do not overcomplicate this. I use these 7 buckets to answer the specific question: “Can we afford a holiday, or do we need to fix the roof?”
| Category | Purpose | Example |
| Essentials | The “Keeping the Lights On” fund. | Mortgage, Council Tax, Utilities. |
| Family Discretionary | Joint fun (and chaos). | Zoo tickets, unexpected pizza. |
| Car & Bike | Transport & Maintenance. | Fuel, servicing, bike parts. |
| Personal Discretionary | Guilt-free spending. | Books, gadgets, pints. |
| Holidays | Sinking fund for trips. | Camping fees, flights. |
| Investments | Long-term hold. | ISAs, Emergency Fund. |
| Work Expenses | A holding pen for company money. | Train tickets, hotels. |
2. The “Day 1” Clean Up
Add all your on-budget accounts (Current accounts, Credit Cards).
Crucial Tip: Exclude long-term savings/investments from the budget view. Seeing your pension alongside your grocery budget is just noise that clutters daily decision-making.
3. The Workflow
Record transactions as they happen. When an envelope runs dry, you stop spending—or you consciously move money from “Holiday” to “Car Repairs.” This hurts, but it is reality.
A Note on Work Expenses
These are a nightmare to manage in personal budgets because they distort your spending data. My fix:
- I have a dedicated “Work Expenses” category.
- When I spend money for work, the category goes negative.
- When the reimbursement comes in, I assign that income directly to the “Work Expenses” category (bringing it back to zero), rather than to “General Income.”
The Verdict
ActualBudget won’t work for everyone—it requires you to be active, not passive. But if you want a tool that is fast, private, and forces you to be honest about where your money is actually going, it is worth the learning curve.
What is the point of thinking about how you should live, if you don’t ensure you follow through? This is the point of a tool like this – are you taking active control of the life you want, or just being blown around in the wind?