TL;DR (≈ 60 words) — The envelope method still rocks, but cash is clunky. In 2025 the best free envelope budgeting apps are Goodbudget, Budget by Koody, Buddy, Wallet by BudgetBakers, Fudget, and Define Your Dollars (road‑mapped). They let you stuff virtual envelopes, track balances in real time, and keep spending under control—no cash, no fees.
The Envelope System Goes Digital
The cash‑envelope system is a budgeting classic: label envelopes, stuff them with cash, and stop spending when the envelope is empty. It’s tactile, intuitive—and, in 2025, wildly inconvenient for card‑swiping, tap‑to‑pay life. Digital envelope budgeting apps give you the same iron‑clad limits without lugging bills. You pre‑assign dollars to virtual envelopes, log each purchase, and watch the balance shrink toward zero.
Why Use a Free Envelope Budgeting App?
- Tangible Limits, Digitally —feel the pinch when an envelope empties, even on a phone.
- Convenience —peek at balances from checkout lines or your laptop.
- Safety —no stacks of cash to lose or steal.
- Tracking —built‑in charts show where money leaks.
The Best Free Envelope Budgeting Apps in 2025
1. Goodbudget
Goodbudget is the gold‑standard digital envelope tool. Create up to 20 envelopes in the free plan, sync two devices, and hand‑enter transactions—or upgrade for bank sync later. Envelope balances update instantly, and the web dashboard mirrors your phone for painless monthly planning.
- Pros: True envelope workflow, couples sync, web + mobile.
- Cons: Manual entry only on free tier; envelope cap.
Known for: Staying closest to the classic envelope method.
2. Budget by Koody
Budget by Koody is a privacy‑first, manual app (iOS & Android) that lets you build unlimited categories—perfect for envelope purists. No bank connections, no data sharing. Colorful progress bars show how much is left in each envelope.
- Pros: Unlimited envelopes, offline capability, dark mode.
- Cons: Mobile‑only; default currency is GBP (switchable).
Known for: Manual control and zero credential risk.
3. Buddy
Buddy takes a playful spin on envelopes. Plan monthly limits, invite a partner, and manually log expenses to watch category bars drain. Shared budgets make it easy to keep vacations or household spending fair. Bank sync is premium, so the free tier stays manual and mindful.
- Pros: Gorgeous UI, shared budgeting, subscription‑cancellation suggestions.
- Cons: iPhone‑only; ads for premium features.
Known for: Ease of use and friendly, visual design.
4. Wallet by BudgetBakers (Free Plan)
Wallet offers a hybrid approach: the free tier lets you create three accounts and unlimited budgets (daily, weekly, or monthly). You can hand‑enter expenses into category “wallets” or add bank sync later. Detailed reports and goal widgets boost envelope insights.
- Pros: Rich charts, multi‑currency, upgrade path to automation.
- Cons: Free plan limited to three accounts; some features gated.
Known for: Deep reporting and flexible budgeting periods.
5. Fudget
Minimalist budgeting done right: list income, list expenses, and tick off payments. Fudget doesn’t enforce categories—you create as many “envelopes” as you want. The free version supports five budgets and 250 lines, plenty for monthly tracking.
- Pros: Lightning‑fast entry, offline mode, cross‑platform (iOS, Android, Mac, Windows).
- Cons: No rollover logic, graphs, or cloud sync in free tier.
Known for: Absolute simplicity and offline freedom.
6. Define Your Dollars (Roadmap)
Define Your Dollars currently lets users build detailed categories and track spending manually, aligning well with envelope principles. Our development roadmap includes Envelope Mode: drag‑and‑drop dollars into virtual envelopes, tap to spend, and watch balances update. Combine that with DYD’s privacy‑first approach and debt‑payoff calculators for a powerful, intentional budgeting toolkit.
Potential: Privacy, manual control, and envelope discipline—coming together in one place.
Making Digital Envelopes Work for You
Pick an app, fund your envelopes at paycheck time, and commit to no cheating. When “Dining Out” hits zero, either cook at home or shift money deliberately from another envelope—just like moving cash between physical envelopes. Consistency beats perfection; review balances weekly and refill envelopes next month.
Next step → Explore other budgeting styles in Budgeting Methods Explained or compare envelopes vs. zero‑based in Envelope vs. ZBB.
