Personal Finance Software - Worth it?

[DrSavin]

Hello again SA!

I have been perusing the interwebs and have been on the prowl for anything that will assist me in becoming an absolute Wizard of personal finance.

I have been doing most of my budgeting mentally and by checking my accounts regularly. I have heard, however, that with budgeting software creating a budget and compartmentalizing my cash becomes much easier.

Is this true? If so, what should I get?

I have seen much free software like Mint.com's as well as Paid software such as Quicken (i believe both are made by intuit).

Should I pay or go with the free? Are free sites reliable, or subject to identity theft?

Thanks again!!

Dr. Savin'

[kork13]

Some people swear by Mint, others by Quicken/Money/etc., and others (myself included) simply design their own system with Excel. It really just depends on what you're looking for, what you need it to do for you, and how much money/time/patience you're willing to put toward making it work for you. Long story short: try them out, pick the one that works for YOU. Everyone's got their own preferences, but in the end, it needs to make your financial life easier.

[skydivingchic]

As kork says, different things will work for different people. Many here use an Excel spreadsheet that they built themselves. I've used Mvelopes for several years and swear by it. It allows me to compartmentalize my money in virtual envelopes but spend using whatever method I choose (generally my credit card). DBF has started using You Need a Budget and he seems to like it. For me personally Mvelopes has been worth the money and I recommend it. But to each their own - try several packages out and use whatever works best for you and your budget.

[MonkeyMama]

I like Quicken for tracking expenses. I don't care as much for budgeting and compartmentalizing, though I do use Excel a bit to track my "compartmentalized savings."

That said, Quicken does have a budget feature, and you can set it up different ways. (You can set up dummy accounts to compartmentalize your savings). I have found that most non-accountants find Quicken a little tedious. Whereas, as an accountant, it's the only super cheap software that I can find that is powerful enough to do what I Want it to do.

Something like Mvelopes might be more your speed. All you can do is try them.

[MonkeyMama]

P.S. Yes - SO worth it, in my opinion. I have always been on top of my finances, but now it is super easy to keep an eagle eye on everything.

It is easy to keep on top of my spending, see where every penny goes, track my net worth, etc. One thing I really like is looking at what I paid the last 5 years for something (a subscription renewal, or something I buy every year). Just with the push of a button. The more data you put in, the more useful these types of software are. At current, I have 5 years of Quicken data.

I always say the software pays for itself.

[Joi]

I tried Mint before, but it stopped updating my checking account for some reason. Customer service was useless to fix the problem, so I closed the account.

Now I use Excel to track my spending and to see if I stayed on budget for the month. I don't have it setup to calculate my net worth or account balances though... I'm just not that savvy.

[snshijuptr]

My issue with Mint and quicken online was the sheer number of categories they wanted me to use. I couldn't follow a budget like that and had to make my own. The good thing was that they got me thinking about compartmentalizing my spending. I know use a Google Spreadsheet which I share with my husband.

[DrSavin]

So with these excel sheets and programs, do you have to input the data yourself, or do they draw data from your accounts, like mint apparently does?

I decided against mint because I am afraid to move all my information from sensitive accounts into one centralized internet database. It's like if one motivated hacker was to get into it, all my eggs are their's for the killing.

[snshijuptr]

I just check my online banking statements and move everything over myself. A few minutes every week while I watch TV is really no big deal for me. This way there is also an incentive to spend less often so there is less to record. I used to record only the major transactions that affected my checking account, but now I record individual expenses on my credit cards.

[DrSavin]

Can anyone recommend a good excel based program? I assume it is just an excel document with the formulas already in place.

I think this will be a good start to test whether or not I need something more complicated.

[Joi]

I just made my own spreadsheet, but I think you can google the topic and find a spreadsheet with the formulas and categories already in place.

[Broken Arrow]

I've had fantastic results using Splashmoney for the iPhone. Essentially, I get to track my budget and spending down to the last penny, and I have it anywhere I go, without the need for a real PC or a net connection.

And because it works well for me, I don't use any other methods, but a couple more that is worth investigating is YNAB and Mvelopes.

[DrSavin]

I've had fantastic results using Splashmoney for the iPhone. Essentially, I get to track my budget and spending down to the last penny, and I have it anywhere I go, without the need for a real PC or a net connection.

And because it works well for me, I don't use any other methods, but a couple more that is worth investigating is YNAB and Mvelopes.

I am actually getting rid of my BlackBerry for a basic flip phone. I looked at my budget and decided $97 dollars a month is not as good as $40 a month (tmobile). Mvelopes was mentioned before too I might check into that.

Currently I am looking at Budget Templates that I can keep in Google Docs. There I can keep a calendar, email, and keep tabs on my budget. Perfect!

[Broken Arrow]

I should probably should have been more clear. I actually use an iPod Touch. It's not entirely cost-effective, but it's still much cheaper than paying for a true smartphone. I use a Tracfone for my basic phone needs.

[DrSavin]

Here is a great template that I think I will be using for Google Docs.

Budget SpreadSheet I found at 20somethingfinance.com

This is a read only file, so If you want it, make a copy of it by going to "File" then click "Make a Copy."

Rename it whatever you want and you will be able to make changes to the copy. All formulas are included and it gives you a remaining balance for the end of the month.