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. [Historic reference]
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.
I thought this was a “FREE” alternative to Quicken, but it seems you charge $60 for it. I’d rather spend $60 on Quicken at Costco.
@Sean,
In the post (though it is now quite old, granted) I do mention the ability to use Calc from OpenOffice to get a lot of the budgeting functionality that Quicken doesn’t offer. Good luck with Quicken from Costco. Love Costco — not terribly fond of Quicken myself.
FWIW, I have used Quicken for about 2 decades, starting with the DOS version and have never been entirely happy with how it worked – it did the job, but I had to coerce it some and it always felt like I was “fighting” their philosophy. Before that I used a manual 16 column cashbook.
More recently I have been designing my own budget software based on my experience with Quicken largely in terms of what not to do. Back in 2005 Quicken made enough mistakes with their UI that my wife and I agreed to throw away a month or two of records in order to downgrade to the 2002 version.
But when my newly upgraded to Win 7 computer refused to install my old Quicken 2002 and 2005 versions, I was forced into shopping for something to meet our family’s needs adequately while I wrote my own which would meet them perfectly.
What I have found, is that YNAB looks as if it will do the job near perfectly and employs nearly all of the general philosophies I have used to budget ever since I started earning money. I am now very optimistic that YNAB will eliminate the compelling desire I have felt to roll my own – and that’s no small thing for a professional software developer to admit they’re *not* convinced they could do it better. Furthermore, the time it would cost me, is *easily* more valuable than the 60 bucks or so every few years to buy something.
Budgeting with a tool like YNAB (an envelope/cashbook oriented system) is a much better experience in a hundred subtle ways that using a traditionally oriented system like Quicken. It also requires significantly less time and is more empowering.
But if you still want to use Quicken, then use income categories like envelopes and don’t use expense categories – I promise your life will be simpler. But, honestly, I am quite certain you’ll be better off spending the same money on YNAB… at least, once they implement a 3 state reconciliation support.