Just wanted to give a quick update on the next version of IntelliPenny.  I'm so excited about the changes and new functionality that have been implemented in this next version.  I just did my personal bills using the new version (to help test it of course) and I love the new functionality.  This new version includes reminders.  You can set a reminder for general items like bills, birthdays, etc.  You can also have IntelliPenny "remember" transactions to be applied on a certain schedule.  Another major change is the new sort order for transactions.  In the current version transactions are sorted according to the order you enter them in.  In the new version transactions will be sorted in date order.  This change was way past due.  When you get your credit card statments and bank statements they sort by date so it only makes sense that your financial program would too.

There are other changes in this new version, but I'll list them out later.  Drop me an email if you are interested in beta testing version 2.0.  I would love to hear from you!

Just thought I would post a quick note about upcoming changes to IntelliPenny.  I'm currently working on version 2.0.  It will include new functionality for setting up reminders.

There will be two types of reminders that can be set up; a general reminder or a transaction reminder.  Reminders can be viewed on a calendar or in a list.  You will also be able to print a calendar for your reminders.

I've been working steady on this so version 2.0 should be ready in the next few weeks. 

There is one secret to successful savings.  I've only heard it mentioned by a small number of financial experts, yet it's vitally important.  Pay yourself first!

Many regard savings as something they will do if there is anything left after they pay bills, buy groceries, buy gas, etc.  I've tried this and it doesn't work.  Paying yourself first does.  I've used this method for a number of years and I can tell you without a doubt that if you are wanting to save more of your money then paying yourself first is the way to go.

Start small.  Just 1% if that is all you can afford.  Then you can slowly increase that percentage until you are at an amount that is suitable.  As you save you will start to see your savings grow.  It will give you such peace of mind to know there is money in the bank.

Ever heard of an emergency fund? I hadn't until after I got married and the husband and I were trying to figure out how we were going to manage our finances.  We read books and researched the best way to get out of debt and save for the future.  That's when I learned about an emergency fund.  Basically and emergency fund is money that you save and promise never to touch except in case of an emergency.  What constitutes an emergency?  Well, that's really for you to decide.  So far we have used our emergency fund during job loss.  I'm hoping that's the only time we will have to use it.

How much savings is enough for your emergency fund?  I've heard many "financial experts" talk about different amounts (3 months salary, 6 months salary, 1 year salary).  The real question should be:  How much do you need in your emergency fund so you can sleep well at night?

I'm a worrier.  I always have been.  Especially about money.  Even as a child I would worry about financial matters that I shouldn't even have been thinking about.  So for me this amount will be higher than for someone who is not a worrier.  Take my sister for example.  I've never really known her to worry.  I've seen her in some tight financial spots that would have sent me to my grave, but she took it all in stride.

I think the best way to calculate how much you need would be to add up all your regular monthly bills (this includes utilities, groceries, gas, etc.).  Add in a few hundred dollars for miscellaneous items that may pop up.  Now multiply that by how many months you would expect to be out of a job.  Now multiply that by three.  If I used this formula then I think I could come up with an amount that would allow me to sleep at night.

Give it a try and see what amount you come up with.  Are you close?  Keep working at it...you'll get there in time.  Just don't give up.  And remember, your emergency fund is for emergencies only.  That shiny,new car can wait.

The envelope system of budgeting has been around for a long time.  I know people who mention that their grandparents used this method.  It's stuck around all this time because it is a good, solid way to budget for the things we spend our money on everyday. 

There are many ways to implement the envelope system.  The original method is cash basis only.  Money is allocated to actual paper envelopes.  Once the cash is gone from that category then that is it.  No more spending for that category.  In today's world there are many that don't use cash much anymore.  I am one of them.  I really like to use my credit card.  I really like getting the points my credit card company gives me.  Since I use my credit card instead of cash then I couldn't use the original version of the envelope system.  Fortunatly there are lots of software programs available that allow you to use virtual envelopes.  I use one of them in my planning my personal finances.  In case you haven't guessed...I use IntelliPenny.

IntelliPenny allows me to set up virtual envelopes and it allows me to use my credit card to make my purchases.  I have found the envelope system to be very easy to implement and easy to maintain.  The amounts that go into each envelope can be tweaked to match my needs at that time.  If I find that I am accumulating an excess in one envelope then I can transfer money from it into a different envelope.  I've had to do this in the past.  For example, I have an envelope that holds money for eating out.  If I don't go out to eat as much as anticipated then I'll move some of that money to my groceries account.

The envelope method helps keep me in check.  I don't like to see my envelopes emtpy, so every time I spend I think about it.  No more mindless spending.  Do I really need this new shirt? What about this new cereal...will I really eat it?

The envelope system won't solve all your financial woes.  It takes some amount of discipline to work with a budget.  It also takes a few months to get your budget tweaked the way you want it.  But if you are willing to make a change, give it a try and see how it can work for you.