For the past year, we’ve been using MoneyWell for Mac and love it. I thought it would be a good time to do a review, since we have found a lot of great features for those looking to make a simplified budget. One of the most difficult tasks when starting a budget is simply understanding how to get going. In this review, I’ll show you how to get your budget moving with a zero-based budgeting system using MoneyWell.
MoneyWell blends the benefits of the envelope budgeting system with great software.
There are so many financial applications on the market today that promise to make budgeting easier while providing comprehensive tools to get the job done. I have toyed with many of them, trying to find something that was suitable for our zero-based budgeting system.
For those of you who are unfamiliar with the zero-based budgeting system, all it means is that your income minus your outgo equals zero. You are giving every dollar a purpose before the month begins. This is related to the idea that you should spend this month’s income next month. I use these principles within MoneyWell to balance my budget and ensure that I always have money in my checking account.
MoneyWell incorporates a virtual envelope budgeting system using “buckets.” At the beginning of the month, you can allocate your income from last month’s income bucket into your expenditure buckets for this month. “Smart buckets” also exist so you can see all your transactions, transfers, and so on.
Once a bucket is empty, you are no longer allowed to spend in that category – just like with actual envelopes! We keep most categories virtual, but a few discretionary categories we track using cash while inputing transactions into MoneyWell.
All of your accounts at a glance – including cash!
One of the strengths of MoneyWell is the ability to see all of your accounts in one clear user interface. The ability to have all of your money dealings in one window means a lot more than you may think. The simpler it is to see your financial standing, the more willing you will be to actually use the software. Other programs often have panels and add-ons that complicate transactions.
When I say you can have all of your accounts, I mean ALL of them. Checking, savings, credit cards (hopefully not), loan/line of credit (hopefully not), investments, and CASH! I especially like the fact that you can keep track of your cash. Cash tends to be spent quickly if it is not being tracked or budgeted.
Reconcile everything in a flash.
Another useful feature of MoneyWell is the ability to reconcile your transactions with your bank account. This can be done automatically through the use of MoneyWell’s extensive integration with banks, or manually if you desire. I find it pleasing to sync transactions manually, as it keeps me more fully aware of our financial situation.
Charts give MoneyWell a visual edge.
With MoneyWell, you can see how your income stacks up against your expenses. These charts help you understand short-term and long-term trends in your finances. It’s fun to see how your hard work is paying off. If you recognize that there is not much of a gap between your income and expenses, you can head over to your spending plan and make a few changes.
There’s still room for improvement, but MoneyWell gets an A+.
MoneyWell could improve by further simplifying the program, but I believe the new version (1.5) will be a home run. Customer support is amazing, and the forums on their site help beginners get started.
Overall, MoneyWell gets an A+. No Thirst Software is the producer of MoneyWell, and should be very proud of their creation. I know I’ll be a MoneyWell user for a long time, and recommend it to anyone looking to create a great budget.
! John wrote two articles for the book: "Budgeting for Groceries" and "How Grocery Stores Work."
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