Online tools for managing personal finances have multiplied in recent years. The most popular site, mint.com, has more than 7 million users. The sites are all basically free, but some promote financial services from sponsors. Others offer ample free tools but charge for premium services.
Most sites require the user’s bank account numbers and passwords to
connect personal financial data with the site. This has caused many to shy away
from this type of effective financial management. As of yet there have not been
security breaches and all sites have bank-level encryption and security. If a
digital budget site was hacked, the customer’s financial data could not be
manipulated because the information on the site is only at a “read-only” basis.
However, if a digital site user would divulge personal information via a clever
phishing scam, then his/her site could be compromised.
Here are the Kiplinger’s Personal Finance top 5 digital
budget sites:
Mint.com is rated by Kiplinger’s
Personal Finance as the best site. Clients who have tried other sites
have described this site as “much cleaner and easier to use.” The “goals” tool
is widely used, allowing customers to set specific targets and track progress.
Pie charts are automatically created to track and give a clearer picture of
objectives like saving for retirement.
ReadyForZero.com has helped many
pay off their debts twice as fast as most people without online help. Users can
experiment by submitting various monthly payment amounts. The interface informs
the users how much time it will take to pay off a debt and the interest needed
to be paid. An appropriate payment plan is then chosen. Notifications of due
dates and rate changes are also issued.
Mvelopes.com claims its
typical user reduces spending by about 10%. Chief executive Steve Smith says:
“You really start managing your finances instead of just reacting to things
that happen on a monthly basis.” The basic idea is that each spending category
is divided into “envelopes”, and when the envelope is void, so is the spending
for that objective. The free membership gives the user 4 financial accounts and
25 envelopes. For a monthly fee of just $10 the user gets unlimited accounts
and envelopes, as well as personal guidance from the company’s financial coach.
Yodlee.com’s Money Center
has a simple, customizable dashboard for all budgeting tasks. The site offers
56 financial apps to choose from that can be dropped into the user’s
personalized dashboard. Yodlee also offers a tax center affiliated with H&R
Block which gives tips on deductions and other tax related matters.
BudgetPulse.com offers the same
basic features as other budget sites but requires a lot more work. It is the
best site for those anxious about hacking and security breaches. There is no
online link to the user’s bank or financial institution. Financial
data is imported from personal Quicken files or the account is manually
compiled. Therefore, accounts are not automatically updated like sites that use
a direct bank link. The user enters each transaction. It takes more time but
offers peace of mind for people worried about sharing financial information
online.
Stacy Rapacon, “Digital Budgets for Everyone”, Kiplinger’s
Personal Finance, October 2012
Photo: 401(K)2013 (flickr
CC)
Jerry De Luca is a Christian freelance writer who loves perusing dozens of interesting and informative publications. When he finds any useful info he summarizes it, taking the main points, and creates a (hopefully) helpful blog post.
The article helped me make my choice. Security is now the most pressing issue. News is often reported on hacks of various systems and sites, data is freely available. You shared the necessary information, thanks.
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