Is Quicken Really Quicker?

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Figuring out how to track my finances has been a challenge for me. I’m constantly switching back and forth from a computer based to paper based system. Right now, I’m leaning more towards a paper based system. I tried using Quicken a few times and every time I did, it seemed like I spent more time fidgeting with the program trying to get it right, that I defeated the purpose of having a piece of software tracking my expenses.

Time investment for set up

My biggest pet peeve about Quicken is that I spend about an hour setting up my accounts and half the time only half of them can connect with Quicken. I have to wait a few days before connection can be re-established so I can check my balances.  It would be faster for me to just sign on to my banks’ online services and write down my balances and transactions.

Addictive time wasting charts

Quicken and MS Money also have lots of fancy charts showing everything from your net worth to spending for the past three months by category. These charts, while helpful, can become an addictive time waster. I find myself  changing the parameters of the graphs in order to see different things, not because the info I receive is particularly useful, but simply because I can.  Using a simple paper based system, I don’t have  luxury to create instant charts. Consequently, I spend more time looking at the bottom line.

Delay in transaction posting

The other problem with computer based systems is that most of the time they don’t display my actual balance. Whenever I make a purchase with my debit card, it often takes many days to show up on my bank statement , and consequently in my Quicken registry. By not having an up to date balance in Quicken, you might be lulled into a false sense of security about having sufficient funds. I’ve been burned by this a few times and have been hit with overdraft fees. I’ve found it much better to write down the transaction in a registry right when you make the purchase. That way I always know how much money I have.

The one thing Quicken does have going for it is the ability to crunch numbers quickly. It’s nice having an instant balance of your bank accounts. I guess a calculator works just as well.

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7 Comments

1. ashley @ twentysixcats on 26.07.2007 at 07:24 (Reply)

   I really like Quicken. I update my account manually on Quicken when I make a purchase, so it is always my most recent balance - and then I check it against the bank statement when that comes. But then, I generally don’t do well with paper-based things.

2. S806 on 26.07.2007 at 07:53 (Reply)

   I’m using Quicken right now just because I had it installed.

   I use Excel to create a monthly budget and use expense tracking and pie charts to track my spending.

   I do like seeing that I spent 32% of my income on Housing and 19% on food, etc.

3. Andrew Flusche on 26.07.2007 at 08:46 (Reply)

   Nice post, Brett. To each his own I guess. We do like Ashley mentioned - enter purchases in MS Money as we spend the money. Then we reconcile the accounts with the bank statements when they arrive.

   I generally think of MS Money (or Quicken) as a computerized check registry. The idea of downloading your transactions from the bank defies the point (to me). Like you said, it won’t actually display your current balance.

   The graphs are a bit addicting, but they’re helpful too. We can easily see if we are actually cutting spending in category X or not.

   Best,
   Andrew

4. Strange Bird on 26.07.2007 at 10:23 (Reply)

   I’m with Ashley here. I don’t like the delay either, but I enter my transactions manually daily and compare them against my bank once a week (downloading and matching transactions), and reconcile against my statement once a month. That way, I can see how much I actually have versus how much my bank thinks I have so I know if I can write another check before transferring funds or not (or what have you). I don’t generally enter things in my check register, so Quicken keeps me on track… even when my roommate takes three months to cash a check I wrote her for utilities ;).

   I find paper methods to be more time-consuming and harder to organize. Quicken takes a while to set up the first time, yes, but that’s only once.

5. Karen on 26.07.2007 at 21:30 (Reply)

   I’ve always had problems with the using the budgeting side of Quicken, and now only really use it as an electronic checkbook register and as a reminder to pay recurring bills.

   If you are interested in budgeting software to really track whether you are sticking to a budget (essential to frugal living in my opinion) try YNAB (www.youneedabudget.com) for $30.00. It doesn’t replace Quicken, since it’s not designed to be a checkbook register, but it does compliment it well. My fiance and I were using it for a few months, although we have gotten away from it with our impending wedding in 2 weeks. After we wake up from our spending hangover, we’ll be back to using YNAB to keep our finances from total disaster!

6. Brett McKay on 27.07.2007 at 06:06 (Reply)

   Great comments everyone. I think my problem with Quicken and MS Money really is the way I’ve been using it, not the software themselves. I might have to give it another go and change my Quicken habits.

7. Links - Facebook Hate Groups, Quicken Question « Legal Andrew on 29.07.2007 at 14:23

   […] Is Quicken Really Quicker? - Brett considers whether or not Quicken and MS Money really save time for finances. We should only use tools when they’re helping us, not just because we can. […]

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