OK, so you're thinking about taking the plunge into accessing your account online. To give yourself the smoothest possible ride on this personal financial wave, you first need to pick between two basic surfboard options: a financial institution website or a software program such as Quicken or Money.

The choice is fairly easy once you face up to your financial profile. Are you a transactor or a tracker? If you only have a hazy idea of where your paychecks go each month and balance your checkbook about as frequently as you go to the dentist, you're what's known as a transactor, and you'll probably be most content with a financial institution's website. However, if you're more diligent with your finances and closely monitor your spending habits, save an above-average percentage of your income and typically maintain immaculate financial records you're a tracker who will appreciate the planning power of a software program. Whichever profile you fit, taking your financial life online will give you a much richer perspective on your saving and spending habits.

The Convenience of the Web
Using a financial institution's Internet branch requires less work and less expense (at least initially) than using a software package like Quicken or Money. That's why analysts expect most new online customers will be transactors restricting their activity to the websites operated by financial institutions. "When we ask people what most interests them about online banking, most people say it's the 'anywhere, anytime' access that they can get at a financial institution's website. That's something you can't get if you have proprietary software loaded on your computer at home," says George L. Barto, a senior analyst in Stamford, Conn. with the Gartner Group's Dataquest division.

In addition to allowing you tap into your accounts whether you're at home, work or on a business trip halfway around the world, using Internet branches can be a cost-saving move. Most financial institutions give customers free, unlimited access to their Internet branches; though they often levy a charge for electronic bill payments handled through a personal finance software program.

While traditional financial institutions see their Internet branches as a way to lower their expenses in the short term, in the long run they hope to build their Web sites into one-stop financial shops that offer loans, insurance and mutual funds. Convenience is great, but only if it is also a good deal, so make sure when purchasing other financial products that you take the time to do some comparison shopping.

The Power of Software
If you're a tracker and appreciate knowing the status of your financial picture, you will most likely appreciate the value and convenience of Internet account access if you spend the $35 to $65 required to buy a copy of Quicken or Microsoft Money. By using personal finance software, you have all the necessary tools to craft a "cradle-to-grave" financial plan while also gaining the ability to download a multitude of account information from several different financial institution or brokerage sites.

You won't be tethered by electronic leashes with a good personal finance software program. Quicken and Money, in fact, encourage users to roam the Web by providing links to a wide variety of insightful financial planning sites. Additionally, the programs promote the idea of diversifying your accounts by making it easy to download data from several institutions. You can upload your monthly bills and make account transfers at the same time. Without a program like Quicken or Money, managing money through several different Web sites becomes much more cumbersome and time-consuming.

The personal finance software programs also are equipped with all the building blocks that you need for adroit money management. Some of the built-in tools include calculators for devising a savings plan for retirement or the kids' education; worksheets for household budgets; portfolio managers for tracking investments; analysis of income tax liabilities; and even gateways that help you shop for insurance and other financial services.

As convenient as this all sounds, it's not magic. Maximizing the value of these personal finance programs requires the discipline — and time commitment — to periodically update your own records rather than just depending on a financial institution's archives. If you aren't ready to assume more responsibility over your personal finances, you probably will be better served by turning the task over to an Internet branch. Even if you stay in the shallow waters of online account access, just getting your feet wet will be an important first step toward better financial management.

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