At some point you may want to explore using budgeting software for your household or personal budgeting needs. The choices can be confusing. This article helps you make a good decision about the type you need.

Ironically, since money is really our topic…budgeting software really falls into the category of “you get what you pay for.” However, expensive doesn’t always mean the best.

Why?

Simply put, the more bells and whistles a software package has, the more complex and difficult to understand and actually use.  And let’s face it, tracking your personal spending is torturous anyway…why make it worse!

Basically, there are a few different categories of software to look into:

1. Excel budget spreadsheets that are usually free to download. Not technically software, but some of them have some great functionality for organizing your budget information.

2. Budgeting software. The real kind. There are dozens of home-grown, mom-and-pop type programs on the web. These may have a few extra bells and whistles or may be the full meal deal.

3. Commercial budgeting software. These are the big daddy programs with name brand kick. Microsoft Money, Quicken, etc.

4. Sites for budgeting online. These are typically member sites where you create an account (paid or free) that holds all of your information and creates the budget for you. Although probably safe, I get the heeby-jeebies thinking about my personal info hangin’ out on some stranger’s website. To each his own.

Important things to keep in mind: amount of time you want to crunch numbers, computer skills required, and your “I-gotta’-control-everything” gene.

Basically, the more sophisticated programs let you track everything under the sun…spending habits, expenses broken out by month, tax implications, loan pay-down dates, etc.

Many of the big boy programs require a healthy understanding of databases and computer savvy. If that’s you–go for it! If not, one of the others can certainly meet your needs.

Here’s the really, really, important point to remember…

Whatever you choose make sure that it has some type of cash flow section that lets you see what will happen in the coming months if you have an “oh crap I forgot that expense” entry. This is the heart and soul of how to make your budget work for you.