Most of us really do have the desire to manage our finances. Most people really want to see their assets grow and their debts decline. Most people, at one time or another, contemplate using some type of software (Quicken, MS Money, etc.) to help them on their path toward financial peace.

I’ve been there.

I checked out Quicken first, and actually used it during high school (yes, I was a high school student that actually tracked what I spent - and yes, I was a normal high school kid in every other way). I just tracked my checking account transactions there, used the fancy charts now and again…

Later on in life, just before marrying, I realized that Quicken would not cut it. The alternative option did not look very appealing (MS Money, which actually came free with our computer purchase and we STILL don’t use it). So in my search for an alternative to quicken, I actually thought I would try something else that would be free to me - Excel.

Looking back I realize that using Excel as my quicken alternative was hardly free. I spent tons and tons of time perfecting what became mine and my wife’s budgeting system. Excel filled the one large, gaping gap left by every piece of software I’ve seen (whether it be a big-house brand like Quicken, or a much smaller program):

The ability to budget.

What I’ve found most people are looking for (even if it’s not free), is something that will help them manage the ins and outs of their cash. Quicken does a great job of showing you what your ins and outs were, but doesn’t offer much in the way of planning what they will be.

Excel as your alternative to quicken, can be built just how you like it - because you can make it. If you want Excel to track what you spend, make it happen. If you want Excel to track what you bring in? Make it happen. And most importantly, where Quicken fails, if you want Excel to be able to help you plan where your money will go in the future? Just make it happen.

My wife and I have been using Excel for several years now. We’ve developed our own template system that we actually sell. If you don’t want to purchase a pre-made Excel system, I really encourage you to build one on your own (provided you have the free time). Not only will you end up with a customized personal finance package made just for you, you’ll also become more proficient in Excel - which is helpful just about any way you cut it.

UPDATE: We’ve abandoned our Excel system to use the unbelievably powerful YNAB Pro stand-alone version. YNAB served us well. YNAB Pro is serving is even better.

One alternative to Excel, but along the same lines if you want to avoid Quicken (I’m not saying it’s bad, I’m just saying it doesn’t do everything, or it does too much depending on how you look at it), is to download a free spreadsheet program called Calc from OpenOffice.org. This way, you avoid the cost of Excel and the cost of a fancy personal finance package. The only thing that will still cost you will be your time (remember, that’s not free either).

Have a go at it. Build your own alternative to Quicken.

Above all, rembmer this one thing: regardless of how fancy your system is, it must help you to always: spend less than you earn.

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