You’re spot on with most of your observations. Let me tackle them one by one:

“I am looking for something as simple as possible.”

When it comes to simplicity, I think there’s no clear winner between YNAB and Mvelopes. A lot of it (as you point out) will also be client preference, since many people don’t like using the Internet at all, while for others the portability will be critical.

I would offer a third alternative–the spreadsheet, which I’m testing out now. It’s super-simple, but does require basic comfort with math. A couple of side benefits include the cost (free!) and strong psychological effects (it puts your envelope balances front and center). I’ll be doing a write-up in a few months.

“It has to be…intuitive and as automatic as possible.”

If you’re looking for automation, Mvelopes is the way; it will quickly pull information from all of your accounts and can even match it to the appropriate envelopes. YNAB and a spreadsheet will both be manual, with YNAB to a lesser extent because you can import transactions manually from a bank.

“Cost will also be a major factor.”

For us, Mvelopes was well-worth the cost (at least for 6-12 months to learn the principles and habits of envelope budgeting), but it won’t be for everybody.

“…many people find comfort in a desktop software.”

You’re absoutely right, and for them YNAB or a manual spreadsheeet would be the best idea. Mvelopes (and most other online financial managers) do a good job with security, but many people are still uncomfortable with giving away their passwords.

“I am wondering if someone had never used Mvelopes before and started directly with YNAB if they would miss some of the features you have mentioned.”

Not really. Many people use YNAB exclusively, love it, and have been very successful with it. But for me, it had some fatal flaws which I couldn’t get over based on the habits I had established with Mvelopes.

“I am going to do further research including purchasing both of them…”

My overall recommendation would be to take both for a test drive (as you’re planning to do). 2-4 weeks may still be too short to get a true idea of the power of either, but it’s a good start.

“Have you heard any rumors about a new version of YNAB anytime soon?”

No, I have not. YNAB 3 was just released earlier this year, so I don’t foresee a new version for at least a few years.

I appreciate the review. I am currently reviewing both of these programs for my clients. I am mainly looking for something as simple as possible for my clients to take the cash envelope system online and bring it up to date with the way most people spend money. It has to be simple, intuitive and as automatic as possible.

Most people don’t have or want to take the time out to focus on budgets and spending which is typically why they don’t work. For most of my clients, cost will also be a major factor, since we are trying to squeeze every dollar out of their budget we can to get them out of debt.

Cost wise, YNAB is the clear winner and I know many people find more comfort in a desktop software, especially for this type of information. However it seems like mvelopes might be more intuitive and automated.

At the end of the day, cost doesn’t matter if it is too difficult for people to stick to. However 7 to 13 dollars a month is a lot more than 59 one time, especially if people are going to use it for many years.

I am wondering if someone had never used Mvelopes before and started directly with YNAB if they would miss some of the features you have mentioned.

I am going to do further research including purchasing both of them and letting my wife give them a whirl. I will just give them to her cold turkey and say tell me what you think with no instructions and see how she does.

Have you heard any rumors about a new version of ynab anytime soon?
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My main issue with YNAB was not its speed, since Mvelopes has comparable lag, but rather the system setup itself. I felt a deep disconnect between transactions and envelope balances, which I touched on in the review, and I could feel the difference in my daily spending. Manually entering transactions was more a nuisance for me, rather than a plus, since I felt I still got the “on top of things” effect with Mvelopes.

I no longer use either Mvelopes or YNAB, but have gotten by with a simple spreadsheet. More on that in a few weeks…

“I haven’t tried Mvelopes but actually am not interested in having all that financial info on a website.” Again, everyone’s comfort level is different, but I believe there are enough safeguards out there (and enough of your information floating around that trying to hang on to it so tightly may not be effective anyway). I would say a good portion of people now online bank, online track, etc.

As for the sluggishness–I agree that Mvelopes and YNAB are both sluggish, but I found the places where YNAB was being sluggish (switching between screens, etc.) more intrusive than where Mvelopes lacks speed (mostly at start-up).

I’m finding that a lot of people are struggling with Inzolo because their bank does not support OFX which allows for automatic importing of transactions as Wojciech described. But still, you can import downloaded transaction files for banks that don’t have an OFX server. I’m fortunate that my credit union rocks (America First Credit Union) and I also use American Express which also has great OFX support. I just wish more banks would get on board with OFX.
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