Personal Finance Software * Budgeting Tips
Will Personal Finance Software Solve My Financial Problems?
Many people have been in this common situation before – you’re keeping your bills current or are ahead in your monthly payment loan. Payday rolls around and you get your paycheck and decide to treat yourself. You go out a few times, buy a few things (all small affordable purchases), and suddenly you wonder where the money went. A good personal finance software program would have been able to track those purchases.
We all are familiar with this situation and can relate to it. Budgeting is important no matter what your income level is. Using a good money management software program will make the process so much easier, plus it will provide many helpful reports.
These applications help you to track both income and expenses, and will let you know where all of your money is going. Some individuals prefer to use an Excel spreadsheet, but we prefer to opt for the budgeting software. We find that the software is generally much more helpful and intuitive. Proper personal finance budgeting can track bad spending patterns quickly.
There are many personal finance software programs available, but arguably the best budgeting programs use a system called “zero-sum” budgeting. What this means is that every dollar is assigned a job – whether it be saving money for retirement or paying down debt. This helps you to not only keep track of expenses, but also specifically allocates money for saving or spending.
While there are many individuals who are skeptical of the power of personal finance software, this skepticism often is due to a strong dislike for budgeting in general. The vast majority of individuals who use this type of software have been helped greatly by it. To prove this point, a recent survey of users of a popular budgeting application was conducted. They found that after 31 days of using the software, and following the recommendations made by the program, many individuals were able to pay down $ 500.00 more of their debt. What if you created a workable budget and were able to reduce more debt? If you were able to reduce your credit card debt or student loans more quickly, wouldn’t that make for a less stressful life? Take that additional $500.00 per month and apply it to your debt, and after one year, that would be a $6,000.00 reduction. If you’re one of the lucky few for whom debt is not an issue, then think how quickly another $ 500.00 a month could be saved towards an early retirement or a new car. Or perhaps a memorable vacation for your family.
Creating a budget is not just for married couples to track household expenses, but is important for all individuals, including young people. Starting out with a good personal finance software program while you’re young will give you a big advantage in managing your finances throughout life. The earlier in life someone learns to budget and manage their income and expenses, the more likely they are to be successful at it later in life. There’s no question that a personal budgeting software program will make that process easier.
An excellent personal finance software program we have been working with, emphasizes that it is very important to put every dollar to work. We have seen the positive results over and over again as many individuals work their way out of debt! This program also uses the concept of setting a budget for the current month’s expenses based on the previous month’s income which makes a lot of sense.
No matter what your budgeting and financial goals are, whether it is to reduce or eliminate debt, save for a new car, or set up an early retirement fund, you really need a realistic and workable budgeting or personal finance worksheet. for that you can live with. If you don’t, you will most likely not follow it. You must also know that a budget will change from time to time, and by using a good personal finance software program, you’ll be able to easily adapt.