Mvelopes Personal Offers New Approach to Spending Management
Hello everyone. Thanks for all the great responces I have been receiving to this blog. Today I just wanted to post some information on the budgeting system I use as the foundation to my personal finances. If you have followed this blog for long you know that I tell everyone I can to use Mvelopes because it has made such a big difference in my own finances. So today I am doing a full-on write-up on Mvelopes.
In2M Corporation recently announced the launch of Mvelopes® Personal Web-Client 2.8. The web-based application offers the anytime, anywhere convenience of online banking in a one-stop financial management center that users can access from home, work, or on the go. The program allows users to plan for, track, and control spending, eliminate and avoid debt, pay bills, and monitor net worth.
Mvelopes Personal is the latest player in the personal financial management (PFM) space that Quicken® and Microsoft® Money have dominated for so long. But Mvelopes doesn’t necessarily consider itself a competitor to Quicken or Money – at least not directly. “Mvelopes really approaches spending management from a different paradigm than traditional software programs,” said David Neddo, senior product manager for Mvelopes. “Other programs simply track spending to let you know if you’ve reached your goals. Mvelopes helps you reach your goals by giving you up-to-date and accurate information, when you need it most – when making spending decisions. Mvelopes does more than simply allow you to view spending patterns, it helps you create them.”
Breaking the Mold
Unlike other PFM programs that simply track your transactions in an account register and show your ending balance, Mvelopes divides the money in your accounts among separate virtual spending “envelopes” such as groceries, mortgage, entertainment and savings – each with its own register and balance. So when a user looks at her money to make a spending decision, she doesn’t just see a checking account total, she sees exactly how much is remaining in each specific spending envelope. The idea is that by viewing the envelope balance instead of a checking account balance, you can see that although a specific purchase may not adversely affect your account, it can adversely affect your ability to cover other expenses, such as a car payment, groceries, or your daughter’s birthday.
The service links directly to your bank account(s) and automatically receives your transactions in real time. The transactions can then be assigned to the various spending envelopes to give you a visual snapshot of exactly how much you have left in any given category and how long it has to last. If you overspend, the budget category turns red alerting you that you need to adjust either your spending plan, or your spending.
Because the service is web-based, users can log on to view and update their spending plan from any computer with an Internet connection. Couples can simultaneously log on at different locations and go over their finances together over the phone. Unlike traditional software programs, users aren’t tied to a single computer. “I recently received a letter from a retired couple touring the country in their RV who use a computer at any local library to keep track of their finances and pay their bills while on the road. They love the freedom and control it offers them. We even have users in the military, serving in Iraq, who have been able to access Mvelopes through local Internet connections to coordinate with their spouse back home,” said Neddo. “Mvelopes really does allow for anytime, anywhere access.”
Mvelopes Personal also boasts a credit card feature that allows users to properly manage their credit card spending, avoiding costly service fees and high interest rates. When a user makes a purchase using a credit card, upon assigning the transaction to a specific spending envelope, the program automatically reallocates the transaction amount from that spending envelope to a credit card repayment envelope so the user isn’t tempted to spend the money elsewhere. When the bill comes, the exact amount due is sitting in the credit card repayment envelope to be paid in full. You can even pay the credit card bill using the included online bill pay service.
The prepaid subscription service, which is supported by over 8,000 financial institutions, is available starting at $7.90 a month*. According to In2M, that places the cost of Mvelopes Personal at roughly a third the price of either Quicken or Money once you pay for the additional features that Mvelopes includes standard. Important features include:
- Electronic envelope approach to budgeting
- Automatic transaction retrieval
- Anytime, anywhere access
- Credit card management
- Full-featured bill pay service
- Net Worth tracking
- Live customer support, and unlimited personal budget coaching
“Every so often a product comes along that changes the paradigm in a given industry,” said Neddo. “Mvelopes Personal is bringing spending management into the twenty-first century.”
Product Pricing and Availability
Mvelopes Personal is a prepaid subscription service available at www.mvelopes.com or by calling 1-866-367-4686. Plan prices are as follows:
- 2 Year Plan: $189.60 billed every other year (equivalent to just $7.90 per month)
- 1 Year Plan: $129.60 billed every year (equivalent to just $10.80 per month)
- Quarterly Plan: $39.60 billed every 3 months (equivalent to only $13.20 per month)