I love the way people can take stuff we’ve been doing for years out in the so-called “real world” and bring it to life on the Internet in new and more powerful ways.  Craigslist does it for classified ads, for instance.  It’s the same basic theme, the same ages-old practice…  It’s just faster, easier and (in many cases) more valuable than ponying up for an ad or leafing through the paper.

Mvelopes is my new favorite example.  It’s a personal finance program.  It takes the old school “envelope system” of budgeting and makes it easier–while adding a host of nifty extra tools in the process.  It doesn’t just do that in the way a traditional software program would, either.   If you’re a user, you can access Mvelopes from any computer with an Internet connection.  Google Docs gives you word processing, spreadsheets and other software “on the cloud.”  Mvelopes does it for budgeting.

The traditional envelope system involves busting down your expenses, taking your money, in the form of good ol’ fashioned cash, and putting it into a series of envelopes for each kind of expense you’re up against.  It’s a proven money management system and tends to do some wonderful things for people who are really struggling with getting a hand on their finances.

Mvelopes does the same thing without requiring anyone to yank dough out of the bank.  You set up virtual envelopes within the program, each “containing” the necessary sum of money.  In reality, your money is sitting in the bank, as always, but the software-generated envelopes help you stay within your budget by limiting your expenses within each area based on your budget’s design.

You can try Mvelopes for free, but if you want to keep using it, you’ll need to come up with $12.65 per month.

And that’s the big question about the program, really.  Is it worth paying $12.65 per month for this particular budget aid?

It’s easy to say “no.”  After all, a stack of envelopes and a pencil will allow you to accomplish the same thing.  It’s not a new idea and it’s not a complicated one, either.  Additionally, when you start multiplying that $12.65 per month over a longer time period, it really starts to add up.  When you start comparing the actual price of Mvelopes against other similar software packages, it does take a little shine off of Mvelopes.

Nonetheless, those who are just now begninning to grapple with their budgets and those who really benefit from the ability to visualize “envelopes” probably won’t mind shelling out the money.  A single NSF charge from the bank can run you up to $50.  If you stop a few of those over the course of a year because of Mvelopes, you’ll be money ahead!

Mvelopes is more than just a budgeting and money management tool.  They’ve added a variety of great features, including a debt buy-down planner and schedule. Finicity, the makers of MVelope are ex”Finicity’s goal is to help members take control of their money, rapidly eliminate debt, and eliminate the stress often associated with financial management.” said Steve B. Smith, Finicity President and CEO. “Mvelopes helps our members accomplish all of these things, but the new debt center will also help them to focus more quickly on debt elimination so that they can improve their financial position.”cited about the new debt center portion of the program.

That’s probably why some people rave about the program.  A commenter and FreeMoneyFinance is an example of how some poeple feel about Mvelopes:

We have plenty of money in our accounts at all times.  It has truly changed the way I handle and look at our money.  To  me, it has been revolutionary.

Overall, I think Mvelopes is a great example of making the tried-and-trued old ways stronger and more relevant.  The price tag is a big turn-off, but the idea and its execution are both pretty impressive!