Financial software helps you budget and save money, and ironically, it can also be expensive.
Does the Software Have Features You Need?
The primary reason for buying a previous version of financial software is that a less-than-latest version may have the features you need at a significant savings compared to the latest version. However, if there are three years or more between the previous and latest versions of your financial software, you should buy the new version. With that much time between version upgrades, the features in the software will have been improved due to changes in technology and feedback from customers using older versions, and you get a better deal putting the money you would use for a previous version toward the new one.
Will Data Downloads Work?
If you are the customer of a small bank or other financial institution (FI), you may find that the latest version of financial software does not support automatic account transaction downloads from your FI. While this happens infrequently and you can usually download transactions to your computer and then import them into the software, you may find that older software is necessary to utilize the older technology your FI uses.
If you prefer to download your data instead of entering transactions manually, be sure to check with your FIs to find out if the software version you are considering will download your transactions. Most financial software that offers transaction downloads provides a list of compatible financial institutions as well, so check out the support, help or FAQ section on the software web site.
When Older Versions Don't Work
When buying an older version of financial software, you need to be sure not to buy a version that will stop working just a few months after you buy it. For example, Quicken supports versions three years out and Microsoft Money supports two years out, so pay attention to the sunset or obsolescence policy for the version of financial software you are considering.
Other financial software, such as Moneydance, GNUCash or You Need A Budget usually has no sunset policy. Most online financial software does not require paid upgrades, so this is another option for avoiding forced financial software upgrades.
Buy and Upgrade Strategy
Many software titles offer lower prices to upgrade to the latest version than you would to buy the latest version itself. You can save money by buying an older version, even if it is obsolete, then buying the latest upgrade (a strategy from Sue Chastain of About Graphics Software). You can find older versions of the software for bargain prices on eBay or other web sites and in some retail stores.
- Calculate the cost of the older financial software version plus the upgrade to see if you would save money using this technique.
- If you find an offer for special upgrade pricing, read all the information for the offer. These offers usually do not extend to upgrading very old versions, and you do not want to buy five year old software only to find that the upgrade deal does not apply.
- Avoid OEM software purchases unless the seller specifies that you will get a license or registration key. You need proof of registration to upgrade at the lower price.
Check prices for older versions of Quicken by scrolling down this list. Check prices for older versions of Microsoft Money by scrolling down this list.
The Cool Factor
OK, so maybe you do not need the latest financial software features but will those new features save you time? Will the latest features simply make using the software more fun for you? In either case, if the cost for the latest financial software version will not wreck your budget, go ahead and indulge yourself.
