Frugal GAB

Now that we have rung in the new year (and a new decade) it is time to set some  Financial Goals  for this year. I kind of hate the word resolutions, so goals it is!  I think it is important to write down what you want to accomplish so you can get focused and have a written reminder throughout the year.

You can break you goals down however you like, but I believe having several be more specific and measurable  is truly important.  For instance, instead of simply saying “Make more money” break it into smaller goals, like “ask for a raise of $xx amount”, or “increase sales to $xx per month”, or even “start new xx business”

Here is my rough draft of goals for the year. I will be breaking each into even smaller parts as I tackle them individually.

Reduce Debt:

1. Pay off remaining hospital bills
2. Pay off AmEx
3. Pay at least 1/4 of BOA

Increase Income with goal of extra $300/month:

1. Reopen eBay store
2. Expand Amazon offerings
3. Research other options like  jewelry biz

Savings/Buffer/Emergency Fund

1. Goal of having a buffer to live off last months income
2. Increase emergency fund to $1000
3. Funnel extra into savings

Have you set some financial goals for this year?  Are they vague, or have you drilled down to more specific and measurable goals?

In a previous post I discussed options for financial software to use when MSMoney goes away.

My final choice was to go with YNAB (You Need A Budget) so I bought the Pro version.  So far I am very pleased with the functionality.  They have tutorials on the site about their budget process and the 4 rules to follow.  I have transitioned nicely from my MsMoney and my Excel spreadsheets.

When I purchased YNAB I got the scoop that a new and improved version was in the works: YNAB 3.  After viewing the Sneak Peek on their blog and reading on the forums, it sounds like it will have some of the minor things I was wishing Pro had, like a column for check numbers and probably lots of more useful items I have yet to uncover.   The new YNAB3 version is due out by the end of the year, and much to the delight of Mac users, it will be compatible.

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Disclaimer: I have purchased this product for my own personal use and received no compensation from the company to  post my thoughts or review of this product.

In my quest to replace the soon to be obsolete Microsoft Money software I have been researching the various financial software programs available.  Because I am used to a desktop software like Money, I instinctively looked for another program to buy and download to my PC.  Well you know what, the choices are rather limited! Quicken anyone?

More and more web-based applications are being developed, and all have their individual strengths and weaknesses.  I found a great list of options in an article titled Good-Bye, Microsoft Money… over on Get Rich Slowly. Thanks to a lot of input form readers I was able to get a little more insight into each one.

My dilemma in making a choice (and if you know me I really weigh my options heavily before deciding anything) is how to incorporate tracking personal finances and business finances.  It seemed to me that no one program is going to do it all in the way I would like.

Here are functions that would be great to have:

–ability to connect with banking, credit card, and investment sites to download my transactions

–ability to also manually enter or edit transactions

–integration with my banks bill pay features

–budgeting and  tracking progress

–the ability to split a transaction into more than one category

I am sure there are more little things, but these are the big ones.

As with anything, making a change often does not come easily.

Since I began searching for something new I have tried the following web-based programs: Mint, Thrive, QuickenOnline, and YodleeMoney Center. Then I also downloaded trial versions of two desktop applications: MoneyDance and You Need a Budget (YNAB).

After playing around with each of them for a while I found each one had their quirks that were deal-breakers for me. The two big ones are not being able to manually enter transactions or to split a transaction into more than one category. So I discontinued most of the online services.  I got in on a beta testing group from Quicken, so I will keep playing with that in order to give them accurate feedback and suggestions for improvement.

I have to say I really liked YNAB the best and will continue using it. Their budgeting feature has enabled me to stop running both my excel spreadsheets and my financial software, often doubling my work. This will surely streamline things for me.  If you are wanting to get a handle on your finances, being able to plan where your money is going to go, then YNAB is a great tool. They have a 7 day free trial, so check it out. In addition their site has tutorials on their budgeting philosophy and tips on how to best utilize the program, along with a great user forum.  Soon they are releasing YNAB 3 which will be Mac compatible.

I hope you take a few minutes to look at the various sites I listed and see if one will work for you. Most of them have the ability to download information from your bank, track credit cards and investments and setup bill pay reminders and some budgeting and savings goals.  As each of us has different requirements, what program works for one may not work for the next person.   If you have experience with any of the above, please post your likes or dislikes in the comments.

Also…for small business owners, WAHM, eBay sellers and the like, check out this great site for tracking business income and expenses Outright (now eBay compatible!)