Two types of people should read this post: those who use Quicken or Money and would like an alternative and those who don't currently use software to track their finances, but might want to.
A few weeks ago, I wrote Quicken vs. Microsoft Money and received several comments about how bad each of them was. At the end of the comments, I joked, "Maybe I'll just bag them both and use Excel." Little did I know that my ending was prophetic.
A week or so later, I was contacted by the owner of You Need A Budget and offered a free sample of their product to evaluate. But before I tried it, I was sold by the great review it received at It's Your Money, a well-respected financial blog. Here are the key parts of that review:
While enrolled in the Masters of Accountancy program at BYU, Jesse took what was initially a simple "expense recorder" spreadsheet and gave it bigtime functionality and customization capabilities so that others could implement "the power of a great spreadsheet" into their own financial lives.
At first glance, the main YNAB workbook is extensive. It relies upon eleven worksheets to do all its financial dirty work, plus a "Setup" worksheet to specify your household-specific information, such as user names and custom spending categories. In addition to the standard "income" and "expense" budget-tracking stuff, and that is where the strength of YNAB resides. However, there are also worksheets geared to help you with debt paydown (in the style of Dave Ramsey and his Baby Steps), simple retirement planning, and auto maintenance. All the worksheets are professional in appearance and aesthetically pleasing. Worksheet pages include helpful instructions and notes, none of which interfere in the slightest with the number-crunching areas on the page.
There are several aspects of the YNAB system which I adore. If you are familiar with and/or a user of Freedom Accounts, then YNAB might just fit your budgeting needs perfectly. Thanks to the cumulative manner in which spending categories are budgeted for, and expensed, from month to month, your Freedom Account deposits and balances are integrated seamlessly into your budgeting. (Essentially, each spending category is treated as its own spending/savings account.)
But YNAB isn't all about a double-digit paged spreadsheet. It's accompanied by the YouNeedaBudget.com website, which is clean, well-organized, and helpful. Potential buyers and other interested parties can find a healthy batch of YNAB spreadsheet screenshots. And even if the spreadsheet isn't your thing, the YNAB site is also crammed full of some great articles on budgeting, overall spreadsheet usage, and personal finance in general.
YNAB is easily the most impressive budgeting spreadsheet I have yet seen. (I'm not kidding. My spending plans and other Excel spreadsheets are pathetic compared to this!) It might not (probably won't, or shouldn't) entirely supplant Quicken or MS Money if you're a satisfied user of either of those two programs. But YNAB is an astounding performer in the lone task where Quicken and MS Money have, to this point, been lackluster:
YNAB gets a blue ribbon for pinpoint, strategic budgeting via Excel spreadsheet.
The site then goes on to give it a rating of 4-4.5 out of 5. Not bad at all.
I must admit that I didn't do the extensive trial of the product that It's Your Money did (I am planning a trip out of the country after all, and it's a bit hectic), but I did review the software and am recommending it for the following reasons:
1. It's a simple, yet effective (and even powerful) system for tracking and analyzing spending. Beginning users will find it easy to use, but users who want a bit more won't find it lacking. Quite simply -- it does what you need in an easy-to-use manner.
2. The review from It's Your Money. Obviously, it's just not me who thinks it's worthwhile. I'm not sure I'd give it a 4-4.5, but it certainly rates a good score.
3. The alternatives are not great. Unless you love Quicken or Money or have 10 years of data in either, this is a better option.
4. The cost is only $19.95. Very affordable for even the tightest budget.
5. When you purchase, you get four free bonuses worth $65! Even if you discount these, they are certainly worth the purchase price of the software.
6. BEST OF ALL: THERE'S NO RISK TO YOU!!! That's right, there's a 60-day money back guarantee. The specifics: "You have absolutely no risk when purchasing this product. If you give the program an honest effort and aren't happy with it, you are entitled to a full refund." What's not to love about this? There's no risk in trying it.
Therefore, I encourage you to visit You Need A Budget and see for yourself what it's about. There's no risk to you and I think you'll find it to be a great product.
To protect your credibility, you really should say how much you're being paid to say these nice things about YNAB.
Posted by: Dan | November 10, 2005 at 09:28 AM
Dan --
No one can pay me to say nice things about a product I don't like. It's simply not worth it. So if you're implying that the only reason I'm endorsing this product is for a fee, you are mistaken.
I'll refer you to my ad policy (found at http://www.freemoneyfinance.com/2005/10/fmf_speaks_my_a.html) if you (or anyone else) have doubts about my motives. The summary: 1) I only recommend things I use/believe in and 2) All revenue from this site goes to charity. (That's REVENUE, not profit. I pay all the expenses of the site myself, but give all revenue to charity.)
I hope that explanation "protects my credibility" (not that it needs protecting), but I'm sure others are wondering the same thing. Thanks for raising the issue.
All that said, I'd encourage you to try the YNAB software (there's no risk), and if you don't like it, write me a note and I'll post it. Likewise, if you do like it, please do the same. I want to find great solutions for us all to manage our net worths and if this product is/isn't a winner for most people, I'd like to know.
FMF
Posted by: FMF | November 10, 2005 at 09:53 AM
This does look like a cool product... BUT...
I assume that it does not include the functionality to download transactions data from financial service companies - e.g. credit card transactions. Isn't this a substancial shortfall for a budgeting tool.
I ask this question because I am contemplating the purchase of some kind of finiancial plannign software right now.
Posted by: RickH | November 10, 2005 at 02:23 PM
Rick --
You are correct. It's more of a budgeting/cashflow solution than an investment tracking solution.
For me, YNAB is a great budgeting alternative (I currently use my own spreadsheet to budget -- Quicken's budgeting section is too clunky for me) and use Quicken to track expenses/investments. From now on, I plan to use YNAB for budgeting and Quicken for expense tracking/investments.
FMF
Posted by: FMF | November 10, 2005 at 02:28 PM
And what about a free solution?
An open source solution?
And you can import Money files.
Look here:
http://www.grisbi.org/
Posted by: Luis bastos | November 25, 2005 at 06:39 AM
I print my checks from w/i money, so I won't be using an excel solution any time soon.
Posted by: Blaine Moore (Run to Win) | January 25, 2006 at 01:49 PM
I have used everything from Quicken and MS Money to building my own excel files. I like YNAB. I have used it for a year now and I see a huge difference in my attitude towards money. My money.
Posted by: Thomas | January 30, 2006 at 03:25 PM
What the YNAB system does is create an envelope system for spending your money. Which means you have the money before you spend it, and it makes it easier to make sure you dont over spend in a category. An envelope system is very effective. If you want something that can be incorporated with your online accounts and automatically pull in your transactions for you there is a online program at www.mvelopes.com. It incorporates the envelope idea and adds the ability to pull transactions from your online checking/savings accounts and credit card accounts as well.
I have been using it for around 6 months now and it has totally revolutionized how I manage money.
Let me know if you have any questions about it. There are fee's invloved and no I do not make money to talk about it.
Pete
Posted by: Pete Brissette | February 27, 2006 at 03:40 PM
here's a good household budget worksheet too that can be downloaded in an excel file http://www.moneysavingfreetips.com/household-budget-worksheet.html
it has break downs of mortgage, car, debt and other miscellaneous expenses
Posted by: Sadhra | April 20, 2006 at 01:13 PM
I'm expert excel user and uses excel regularly for budgeting and cashflow management - MS Money for Credit Card Transactions and Asset\Liabilities Management. MS Money can do things that YNAB can never achieve, however for budgeting and cashflow management it sucks big time. My suggestion use both, YNAB for day to day cashflow management and MS Money or Quicken for all the other transactions.
Posted by: Shydoc | July 07, 2006 at 11:34 PM
YNAB is a spreadsheet, therefor is has significant limitations. For all of its many flaws, Quicken has a database backend, making infinitely more flexible/capable. While YNAB may be a good program, it is certainly not a replacement for Quicken.
Sigh - the search continues.
Posted by: Gerry Roston | August 19, 2006 at 11:48 AM
YNAB needs to work with Quicken/Microsoft Money. See this piece for details:
http://www.freemoneyfinance.com/2006/08/quicken_andor_m.html
Posted by: FMF | August 19, 2006 at 08:10 PM
You can't compare YNAB to Money or Quicken. These are two very different products! YNAB is a good simple cash management program, and an over priced one at that. If your finances are more complex, need investment transactions, historical account data, check printing, online banking, and credit card transactions, customized reporting then YNAB is not for you. Money and Quicken are in a different league. BTW it's really easy to create and use an envelope budgeting system using QUICKEN. YNAB is a zero based budeting envelope system which is a methodology and system, not a piece of software. You can get the same results with Quicken, Excel, or a tablet and pen if your really determined. Since the idea is save money and get the most from your dollar, I would be hard pressed to shell out 59 bucks for YNAB when I could get Quicken which is a full featured personal finance package for the same money. Neither package is perfect so it's a matter of personal choice in the end. Quicken gets the thumbs up here!
Posted by: BD | October 07, 2010 at 05:04 AM