Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more years than I can remember. But a conversation the other day with my youngest son started me wondering whether or not I really need money management software.

The difference is what most banks have done with their online banking in the past few years.

It used to be that the only way you could keep track of your spending online, pay bills and determine where you had spent your money was to have a money management program.

However, today you can get most of that information you need from your bank. For example, we have two accounts at a bank I'll call First Denver National. When I sign on for online banking, I have a choice of Account Summary, which shows me how much money I have in each account. Bill Pay or Transfer.

If I select Account Summary and then click on the name of the account, I can see a list of all my deposits and withdrawals for the past 30 days.

When I click on a hyperlink titled "Spending Report," I can see exactly where I spent money for the past 30 days by category such as utilities or groceries.

If I choose Bill Pay, I can pay a bill once or create a recurring payment. Naturally, I have to set up payment information for each of my creditors but I have to do this only once. In my case, I have provided payment information for six of my creditors, including our local power company, satellite TV provider, telephone company and so forth. I have not established any recurring payments as all our bills vary from month to month.

When the monthly bill comes in from, say, our local power company, I open my online account, select Bill Pay, and then tell my bank which day I want the bill paid and for what amount. This all takes maybe 30 seconds.

Now, my money management program does offer many features that are not available through my bank. For example, I can quickly generate reports such as "Am I saving more or less?," "Has my spending changed in this category?," "What am I worth?", "How are my investments doing?," and "Did I meet my budget?" In addition, my program provides a lot of tax related information.

The problem is, I don't use these reports. I would guess that at least 90 percent of the information I need on a daily basis is available through my online accounts.

Don't get me wrong. Programs like Quicken and Microsoft Money(R) are powerful programs with a bevy of great features. However, before you invest in one of these programs, you need to ask yourself whether or not you really need all that power. Do you have a lot of investments you want to keep track of? Do you own a business? Do you use a tax program such as TurboTax? If the answer to any one of these questions is "yes," you probably need money management software. On the other hand, if you answered "no" to all three, you may be able to get by with just the free information available from your bank.

Before you make a final decision, there is one other factor to consider. In our case, the bank charges for both online banking and bill pay. The charge is about $10 a month or $120 a year. In comparison, a program such as Quicken Basic 2005 costs only $29.99 and includes both bill pay and online banking.* This means that if your bank changes you for either of these services, you might be better off buying a money management program ? even if you never use many of its features.

*Some banks my charge for online banking even when you use a money management program. Be sure to talk with your bank before making a final decision.

(R)Quicken is a registered trademark of Intuit Corp.
(R)Microsoft Money is baa registered trademark of Microsoft Corporation.
All other registered names are the property of their respective owners.

For FREE help with debt, and credit, subscribe today to Douglas Hanna's free email newsletter "8 Simple Steps to Debt Relief" at http://www.all-in-one-info.com

---

Budget Planning - Its Elementary My Dear Watson

Does it feel like you have to be Sherlock Holmes... Read More

Personal Finance - Have Consumers Had a Belly Full of Personal Debt?

For months, we were trigger-swipe happy, putting our groceries, clothes,... Read More

Portfolio Planning can Lead to Irreconcilable Differences

The judge had to ask the question, and we had... Read More

Reduce College Debt with Scholarships

Six Scholarship judges were sitting around an oval table. Forms... Read More

Im Broke, How Can I Afford...

I'm still amazed every time someone comes to me complaining... Read More

Top 10+ Ways to Jumpstart your New Year?s Finances!

Of course, these don't have to be done in any... Read More

Budgeting Before Buying

With interest rates being at an all-time low, I can... Read More

The Joys of Address Labels

Address labels are many things to many different people. If... Read More

Live Green; Save Green!

Have you seen the recent article on a new "green"... Read More

Are You Sick of the Financial Insecurity of Fluctuating Seasons and Income?

Finding a stable and secure income that will come year... Read More

Family Money Management: The Importance of Agreement

Are you having problems with debt? Are you afraid to... Read More

Eight Ways To Sink Yourself Financially

1. Don't focus on your finances.The reason most people get... Read More

The Magic Of Compound Interest

Christians are called to be good stewards of God's resources.... Read More

Saving Dimes Can Go a Long Way

On the other hand, there are those people who are... Read More

Improve Your Professional Image Using Address Labels

One of the simplest ways to improve your professional image... Read More

Healthy Eating On A Budget

It is possible to eat a healthy, balanced diet without... Read More

Personal Loans For Homeowners ? One Of The Numerous Rewards For Being A Homeowner

You no longer look at the pictures of homes cause... Read More

Basic Bank Accounts Failing the Basic Needs of Consumers

The lists of bank and savings accounts that are available... Read More

Debt Management ? Watch Out for Bank Fees!

During the last twenty years, banks have offered a number... Read More

Do You Really Need the Power of Money Management Software?

I have been a loyal user of Quicken(R) for more... Read More

Succession Planning

Have you ever thought about what you are going to... Read More

Your Dry Cleaner?s Double Standard

Women are charged more for dry cleaning services. Don't fume,... Read More

College Expenses: Seven Ways to Save on an Education

Many people graduate from college owing thousands of dollars in... Read More

Avoiding A Nightmare On Renovation Street

You've decided you want a bigger, better and more desirable... Read More

The Origins of Check Writing

People haven't always written checks to buy goods and services.... Read More

Bankruptcy Laws Get Tougher - More Expensive

If you've been thinking about filing for bankruptcy, your best... Read More

How to Balance Your Checkbook ? Get a Calculator and Pencil and You are Ready To Go!

Despite how easy it is to balance a checkbook, very... Read More

5 Steps to Healthy Spending Habits

Next to our physical health most of us are primarily... Read More

How to Save Money in a Grocery Store

Now there are ways to save money in the grocery... Read More

Roth IRA Contributions - IRS Rules

Confused about whether you can contribute to a Roth IRA?... Read More

Save On Food - Ten Tips

To save on food, be an opportunist. Buy what you... Read More

Want Your Savings to Earn a Higher Rate of Return? Try Internet Banking

Doesn't it seem like the only impressive numbers we've seen... Read More

Should You Borrow From Your 401(k) Account?

If you have a 401(k) account, it can be very... Read More