Software Review- Mvelopes

As I was surfing various personal finance forums this morning, I came across a poster who mentioned a budgeting software item called Mvelopes. The program interface is Windows browser based view and shows you a breakdown of each category and sub-category with an envelope icon for each one. You can enter your monthly income manually, or if you have direct debit with your employer and enter your online bank access information, it will update automatically.

Each envelope shows you your budgeted balance for the month and the amount remaining as money is spent. If you link your checking account and credit card accounts, the software will recognize what category each expense should be drawn from and reduce the amounts accordingly. You also have the option to move budgeted money remaining from one envelope to another for flexibility, yet you still maintain your budgeted goal.

The program offers a 30 day trial and is a more user friendly, simpler version of quicken basic. The website http://www.mvelopes.com has a short demo video of the interface and some of the features. Check it out!

Tim Haibach
PFDaily

PFDaily launches PFD Forums

It has been a busy week this week as I have been working behind the scenes on a .com website to be associated with my blog sometime this fall. However, today I am releasing a link to the forums to allow those who wish a "jumpstart" on posting and establishing a presence. The website will be general personal finance related and will emphasize on being more interactive than most. I have created a few posts to spark some discussion. You are welcome to post comments or Forum suggestions in the Feedback area. Just one more step to offering the most complete experience.

The link is posted on the right hand side of my blog. Stop in and say hi!

PFDaily to launch .com site this fall.

PFDaily has recently aquired a "dot com" address and has begun construction of the site which is to be released sometime this fall. Features will include an RSS feed from this blog for integration, a posting forum for questions, scheduled live chat sessions, a links page, and a member's only section, just to name a few.

We are also looking for an original corporate logo for use with the site and are offering $100 as a prize based on quality, creativity, and originality. Deadlines for submission are October 31rst, 2006. This post will be amended with the email where to send submissions.

Online Banks- Are They Really Safe?

Online banking has been around a few years now, and most people are fairly confident and able to at least log into their account from home to check the balance. But what about you? What about the pre-computer generation that is still hesitant to give it a try? Online banking can provide a new world of convenience, allowing you to do much more than checking balances. You can transfer funds between accounts within an institution or even to another institution, like ING Direct for example.

Online banking is safe, but you want to ensure your bank meets a few basic criteria. First, check to see if your bank is FDIC insured. This means your total deposits among all your accounts combined at a single institution is insured to $100,000. You can check to see if your bank is insured by clicking this link: http://www2.fdic.gov/idasp/main_bankfind.asp. Next, you want to review your banks privacy policy. Starting July 2001, banks are required to give you a copy of their privacy policy once you become their customer, regardless of whether you are conducting business online or offline. If they do share your information with other partner and/or third party companies, the bank should have clear directions how to opt out of sharing this information.

Third, check your banks website for security measures. You should see a locked padlock symbol in the lower right hand corner of your internet browser. Your bank should also have a PIN or personal identification number that is not usually the same number you use to access an ATM machine. You also want to make sure your computers antivirus software is up to date and you run a spy-ware checker like Spybot Search and Destroy which is free. Another freeware choice is Ad-aware. I run both, then make sure my auto-protect on my antivirus software is enabled.

Lastly, remember that links on your banks website to other outside websites are not FDIC insured. If you are unsure, you can always check using the link I mentioned earlier in this post.
Online Banking is not as complicated as it sounds. Actually quite the opposite is true. I have been using online banking exclusively for over four years and have no regrets. I sit down once a month, and set up all my bills to be paid on a date I specify (usually the date due unless it falls on a Sunday). This way, I have my money working longer for me, and I don’t need to get stamps, envelopes, or worry the bill will get re-shuffled into my pile of growing paperwork.
Go ahead, give it a try! Once you do, you will never look back.

Tim Haibach
PFDaily

Software Review: Net Worth Tracker

I registered this morning at NetWorthIQ.com in order to take advantage of their free software that allows you to track your net worth on a monthy basis. Registration takes less than two minutes after which a confirmation email is sent you must click a link to activate your membership. There is an option during registration to have them send you an email once a month to remind you to update your net worth. It is also possible to display a graphic of your net worth on your own website, which is customizable. You must choose "allow public display" in order to place a net worth graphic on your website.

The entries include your basic assets and liabilities. The "Cash" item is not broken down into checking, savings, or money market accounts, so you must group these items together, then enter the total on the line. Next is Stocks, Bonds, and Annuities. These items are the non-retirement, non-tax sheltered accounts. There is a seperate line item for Retirement assets. Real estate, Cars, Personal Property, and other round out the mix of assets. Personal Property might be less confusing if re-titled to "Personal Assets". These should include higher ticket items like jewelry, furs, electronic equipment, ect. It is not worth the extra time or effort to get an accurate value of your 10 year old Wranglers. Remember, these items are to be considered for their "fair market value" and not what you initially paid for the item at the store.

Liabilities listed include Mortgages, Student Loans, Credit Cards, and Other. The amount you place in the mortgage line is the balance of your mortgage remaining, and not your monthly mortgage payment or the original loan amount. Credit cards entry should be left blank if you pay off your balance in full each month. Only balances that carry over are considered current liabilities. Finally, the other category. Don't include monthly utility bills, rent, cable, internet, or others of the like. These are considered current liablities, because these services are offered month to month. These services simply end if you decide to discontinue. You don't have this option with a car loan or a home loan, which are long term liabilities (>1yr).

The program is very easy to use although fairly basic. An icon next to each line item that would open a small secondary window with a short description would be very helpful to those who are not familiar with financial statements or how net worth is intended to be used. Net worth is what an individual would have left after all personal assets are sold for their fair market value, and all liabilities (debts) are paid off. This is a good eye opener if you ask yourself "What would I have left if I lost my job tomorrow?"

Overall it is a good program and helps people keep more aware of their finances and will make them more aware of long term goals. The one monthly reminder email is handy to update your net worth. I'd recommend this interactive program to anyone who would like to get in better shape financially.

-Tim Haibach
PFDaily