I have been looking for an inexpensive, online budgeting tool to use in place of the old paper and pen method that no longer works for me because I spend more time on the computer than ever before. I have been put off by a lot of the tools and worksheets that are offered for free or for a low monthly cost. I happened to come across an interesting and very simple program online called NeoBudget.

The NeoBudget site is a budgeting tool based on the envelope method. Essentially this method used to involved creating individual envelopes where you can allocate cash from your income in order to save money. The NeoBudget takes the envelope concept and makes it virtual. Your money stays in the bank but you have a strong visual of where your money is going each month as well as how much money you have left in each “envelope”. It gives you a nice, clear picture of how much you can spend within your limits. The site also gives you some easy-to-follow tips that help you get through set up.

I just signed up this morning for the free month. After the introductory offer, it costs a small $2.50 fee each month. I think I can handle that. So far I have set up all of my envelopes and enter the income information, estimating on the low side. There is no need to enter bank account information or any other account information, making security a non-issue. I have allocated amounts to come from each paycheck into each envelope. As I enter my deposits from my family’s regular income, the money is added to each envelope. Essentially, the trick is to forget what is in your checking account (though you must keep up with your checkbook) and go by the amounts available in your envelope, which is adjusted and carried over each month. There are a lot of options for adding payment information and income information such as on a weekly, bi-weekly, monthly, quarterly, and annual basis.

There are a lot of nice features that will help make things get easier, such as reports, simple financial graphs, and the ability to edit or delete any information simply to keep it updated. I have always loved and benefited from color-coding which you can also do with your envelopes to make it easier to group expenses. I haven’t been able to fully see the program in action, as I am waiting to get my deposits but I think it will be an easy way for me to stay motivated with a family budget, something I have never been able to do. We all start out with good intentions – the key is being able to stay with it.

As I mentioned, NeoBudget is free for the first month and has a nice little introduction tutorial on the site. If you are interested in looking at a simple budgeting software, visit the NeoBudget site. As I work through the system, or decide the system doesn’t work for me, I’ll update on this site.

Happy Budgeting!



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