One of the biggest challenges facing people now is getting a handle on their personal finances and monthly budget. Home money management is not well-taught in schools, and far too many people don’t even know how to make a basic monthly budget. According to studies, only around one-third of people make home budgets, and that’s a big problem—especially when at least one-fourth of people lack any savings at all. Roughly half would not be able to find $1,000 in case of emergency.
In short, people need a good—and—easy way to get a handle on their finances.
Fortunately, that good—and—easy way exists—money management software. Today’s consumer-level money management products are straightforward to learn and use while still having many of the features you’d typically only find in business software. The right personal finance app can allow anyone to take control of their finances and plan for the future.
Is a good money management software package right for you? Almost certainly, Yes! In particular, these are just a few of the ways that home finance software can benefit you and give you ways to save money on a tight budget.
How Personal Finance Software Can Help Everyone Create A Monthly Budget & Save
1. Seeing the big picture
Off the top of your head, do you know the value of all your assets? Do you know approximately how much money you spend each month? Do you have plans in place to create savings for the future?
A great personal finance software package does all this and much more. You can get an at-a-glance look at your overall financial situation. You can also track your progress on long-term projects, such as saving money to buy a car or a home down payment. Being able to quickly and easily see your financial situation allows you to make informed financial decisions when opportunities arise.
2. Tracking spending vs. income over time
It’s very rare for someone to have the same expenses and income, month after month. They usually vary somewhat. For example, you might get bonuses at work in certain months. Or, a home’s utility bills generally change over the seasons—you probably spend more on electricity during the summer than during the fall.
These sorts of variations can make it hard to keep your budget solely in your head. The right financial planning software can track all these variables. You won’t merely have historical spending information; you can plan for the typical ups and downs of expenses based on trends from past transactions. For example, you can know what to expect when summer rolls around and how much extra you’ll be paying for electricity.
3. Embrace financial independence
For many people, it’s too easy to become reliant on others to overcome financial hurdles, and that can cause issues. One person may frequently resort to getting “payday loans” to overcome short-term financial problems, but they lose a lot of money on the interest incurred. Another person may rely on their company’s retirement benefits to plan for their future—but what if that company fails?
The best way to prepare for your financial future, especially retirement, is to be independent. The right budgeting software can create a path towards financial independence, showing you ways to save your own money and create safety nets, so you don’t need to rely on other institutions to stay afloat.
4. Avoid needless penalties for financial mistakes
Every year, banks get billions of dollars from overdraft fees. Likewise, loan companies and utility companies are paid massive amounts due to missed due dates. Don’t throw your money away – these fees are entirely preventable.
The best personal finance software can help you track due dates and your bank balances, giving you warnings ahead of time before you run into any financial pitfalls. If you avoid late fees and overdraft charges, you’ll avoid unnecessary expenses to keep more money in your pocket.
5. Create a safety net
If your car suffers a disastrous breakdown, would you have the money to repair it? Or, if you become injured in an accident and unable to work, how long would you be able to keep the bills paid?
Financial planning software can help you create a safety net to get through these sorts of situations. When you understand your finances, you can start looking to save money for the proverbial rainy day. Our recommendation is to keep a minimum of enough funds to cover more than three months’ worth of your household expenses and other bills.
With that sort of insurance plan in place, any emergency can be a lot less stressful.
6. Keep your family on the same page
Whether you’ve consulted financially with family in the past or currently, you’ve probably experienced that it can be challenging to keep everyone focused on financial security. Your best plan for the future can be undone if you have trouble staying off credit cards or make impulse purchases without considering your budget.
When you use a financial planning software app, you can more easily involve anyone in the financial plan. Bring teenagers into the budgeting process to give them experience and to encourage them to embrace wise money management from a young age, which will aid them immeasurably in their future.
7. Look for opportunities to adjust your spending
One of the most critical roles that a personal budgeting app can play in your life is helping you see opportunities to make your spending more efficient. Just about everyone has areas of expenditure that could be cut down or optimized to save more money over time. Sometimes even the smallest things, like ordering takeout less often, can have a significant long-term impact on monthly budgeting and the amount of money you save.
Or you might notice you’re paying a lot of money for something like insurance, and that could inspire you to shop around for better deals. It’s hard to see those sorts of opportunities without having your budget laid out in front of you.
8. Improve your standard of life
Personal budgeting software can help you avoid problems in the short term, but it can provide significant benefits in the long term. Being smart with your money and budgeting effectively can allow for considerable lifestyle upgrades—such as saving for a down payment on a house. If you want to become a homeowner, it will be challenging if you don’t have a handle on your finances, especially when banks will want to see evidence of your financial stability before they give you a mortgage.
One of the best possible ways to improve your station in the future is to reduce spending now to boost savings for the things you really want later on down the line.
9. Enjoy peace of mind
In studies, more than three-fourths of people have said they stress over their finances. They worry about paying bills. They don’t know if they have enough in their bank account to cover monthly living expenses. Money management does not need to be stressful.
Creating a Budget with CalendarBudget
With the right financial planning software, like CalendarBudget, you can remove that stress from your life and find ways to save money on a tight budget (or any budget for that matter). Go forward knowing that you have a handle on your money and that you CAN overcome financial obstacles in your path. Click here for a free trial, and see what CalendarBudget can do for you.
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