Budgeting Software Guide
How Budgeting Software Can Help You To Reduce Debt and Control Spending
A few years ago, the Federal Reserve Bank stated that approximately 40% of families in America, on average, spend much more than their earnings. The statement goes on to claim that at least $20,000.00 in credit card debt is carried by more than two million families.
That was a few years ago…what do you suppose those figures are now in this economy that is still in recovery and high unemployment? Budgeting software can help in a big way.
Many of these individuals are not irresponsible, but simply misguided spenders who are unaware of free household budgeting software programs that can help them to ease the financial stress.
Let me hasten to add that we are fully aware that there are many who are unemployed through no fault of their own, and just don’t have the funds to even meet their basic needs. This article is for those who are employed and have the income, but don’t see the need for creating a budget spreadsheet.
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There are some individuals that would rather have a root canal than work with a budget, but in these critical times today, it’s very important to control spending, plus reduce debt and/or eliminate it as quickly as possible. There is a fairly easy answer that we give to our clients, and that is to use a household budgeting software program that will help them to live within their means and reduce debt.
There is a highly acclaimed personal budgeting software program, available at low cost, that we recommend to our clients. The program was developed by a CPA and emphasizes four specific rules, primarily to give every dollar a job. This program can be used by individuals, families, and even teens, and is quite easy to use. In addition, the software developer has Free webinars and other training for those who may have questions, or need additional information.
Reduce debt quickly with a good budgeting software program
You may be surprised just how much a good home budgeting software program can save you when you get a handle on wasteful spending. I’ve had clients say that they recovered up to 10% of their monthly income by using and sticking to a workable budget. Those savings can be used to reduce debt, especially credit cards which are usually a very high rate of interest, and a waste of good money. We need to be ever mindful, at this time especially, and stop the credit card use for purchases that are not necessary.
Current estimates indicate that one in ten American consumers have as many as ten (10) credit cards being used. That figure blows my mind, but I can recall how my family has been inundated with unsolicited credit cards arriving in the mail, for quite some time, that we promptly cut up and discarded. Unfortunately, there are many individuals who couldn’t resist the temptation, and have used these cards for things they simply didn’t need, and quickly amassed debt that they couldn’t pay for. You must learn how to make a budget plan.
We all must have a reliable system in place to track our spending and stop the unnecessary use of credit cards. When all of those card statements arrive at the end of the month, and you don’t have enough income to even make the required minimum payment, what do you do? I’ve seen marriages literally fall apart because of this stress, and it’s not a pretty picture, or a situation you want to be in. A good budgeting software program goes a long way in reducing stress.
Again, and we emphasize this, please do your very best in creating a budget for your household, and stick with it. When you see credit card and other debt being reduced, it will make your life a lot easier. Every day that you delay can put you further in debt without the ability to control bad spending habits. This is what personal finance software is all about.
The budgeting software program that we recommend to our clients is very user friendly as we mentioned earlier and will guide you through the setup procedure. The program has a built in four rule philosophy and if you follow that, you’ll begin to see savings very soon. Free classes are held on the internet in webinars that will teach you what you need to know about budgeting.
Another important factor is having a good credit score. This is highly desirable today because it is used by every lender and even landlords checking out prospective tenants. You’ll quickly see what a bad credit score will cost you, even on a mortgage for a new home or a refinance. If you create a workable budget, you will be able to reduce debt and have an improvement in your credit rating over time.
Just imagine having all of your debt current, and being able to put a few dollars into savings every month. Or perhaps planning a well deserved family vacation? Having this peace of mind is well worth “biting the bullet” as the old saying goes, and creating a budget now. Please don’t delay this important decision any longer. Find a good budgeting software program that you can use and begin to reduce credit card debt.
An accountant and tax preparer by profession, Gust’s true passion lies in his company blog titled “HBS Financial Group, Ltd.”. Through this venue, he not only tries to teach individuals about budgeting, money management, and taxation but he writes the majority of the articles as well.