Innovative online webtools have made it easier to put your financial ducks in a row.  In the February 4, 2008 edition of Barron’s magazine, Mike Hogan, “the Electronic Investor,” writes about several websites that let you build and keep track of a personal budget.  Some of these websites are:

• www.mvelopes.com (Mvelopes Personal)
• www.buxfer.com (Buxfer)
• www.wesabe.com (Wesabe)
• www.mint.com (Mint)

Of course, as Hogan points out, a notepad and pen might do for a simple budget.  But these websites give you alternative ways of looking at your financial data, such as multiple budgets that allow you to figure out which spending scenario yields you the most cash at the end of the month.  Some of these websites, notably mvelopes and buxfer, actually allow you to download transactions from online bank and credit card accounts.  Personally, I am a bit leery of downloading personal financial information into a public website.  But it all depends on your comfort level regarding your personal financial data.

Hogan notes that another very useful feature of Buxfer and other websites like www.foonance.com and www.billmonk.com allows you to keep track of shared expenses that you may have with roommates, family, or friends.  So, if you and all your college buddies are chipping in to rent a ski condo in Vail or to buy season tickets to your favorite hockey team, these websites allow everyone to see what is owed and who has paid.  I love this feature - keeping track of and collecting cash from a bunch of people is a thankless and sometimes chaotic task.

If you are interested in trying out online budgeting, do a test run on several sites to see what works best for you.  Also, keep in mind that some sites, like Mvelopes, actually charge a monthly membership fee.