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Do I Have to Upgrade Personal Finance Software Every Year?

By , About.com Guide

Should you buy new personal finance software?

Should you upgrade your financial software?

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Question: Do I Have to Upgrade Personal Finance Software Every Year?
Some of the most popular financial software offers a new version every year, which can get expensive. Is it worth your money to buy new financial software annually?
Answer: The primary reason for upgrading to the latest financial software is to get new features and bug fixes for problems that existed in the previous version. Before you buy the latest personal finance software version, consider this:

Reasons Not to Upgrade Software

  • If your current version is supported (you can get tech support and no features have been disabled) and you are installing updates as they are made available, you should be getting the same bug fixes for your existing software that are included in the latest version.

  • The latest version of your financial software may not have eradicated all bugs in the previous version of the software.

  • Ironically, with a new financial software release comes the possibility of new bugs. The newest software version from any reputable developer will have been well-tested and quite functional, but annoying glitches can surface when the software is being used by the general population.

How Long is Too Long Between Upgrades?

While many financial software users upgrade annually simply to enjoy using the latest technology, some prefer to upgrade almost never, possibly going a decade before upgrading their software. The problem with waiting too long to upgrade is that when a new computer is eventually purchased, the old software may not run on the new system.

If several upgrade versions exist between the version currently installed and the latest version, upgrading directly to the new version may not be possible. This is usually because the latest software can't read the data files which hold all the transactions entered over the years. To get around this, you need to install a version from between your old version and the new one to allow the software to convert your data files. After completing one or two of these intermediate upgrades, you will be able to install and use the latest version of the financial software. To find old software versions, contact tech support, who should be able to provide one or two free downloads of old versions.

One other hassle caused by waiting for too long between software upgrades is missing out on using time-saving features included in newer software. These features are often worth the cost of an upgrade.

The Happy Medium for Upgrades

A good rule to follow for getting the most out of money spent on personal finance software upgrades it to upgrade at least every three years to take advantage of new technology that will generally run faster on your system. Within three years significant improvements will have been made to the software to make entering data, setting up budgets and using financial reports easier. Just be sure to know your financial software's obsolescence policy, which may cut off support and features that require the Internet (like data downloads) sooner.

Can You Save Money Buying Old Software Versions?

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