It’s very easy to get into bad financial habits. You may find that there never seems to be enough money to get you through the week, even though you know you make enough money to cover all your expenses. One of the best ways to find out what financial holes you have so that you can plug them is to get household budget software. If used consistently, this software can help you pinpoint where you are spending your money to decide which expenditures you may want to cut back on.
Seeing your financial picture in black and white can be a real eye-opener. It can be one of the best things you can do to get control once and for all, and you may find that you actually have more money than you thought.
Here are some things you can do to pick the right program and get the most out of it:
- You may want to avoid the professional versions of budgeting software since they will likely have more categories and functions than you need and may make using them more complicated and time-consuming. For most people, a way to track their income from various sources and expenses can be categorized into mortgage, car loans, groceries, utilities, phone, and miscellaneous expenses. For a good spreadsheet that tracks your income and expenses and calculates your net worth, visit KG Meyer Budget.
- Consistency is the key to making a program work for you. You must enter everything to get an accurate picture. Ensure you and everyone in your household is on the same page regarding keeping track of expenses. Set a day that you will sit down and enter everything and remind everyone to keep their receipts so that everything gets entered. An automated free budgeting tool that can incorporate all your online accounts can be found at https://www.mint.com.
- After using the software for a month or two, you can sit down and analyze where your money is going. You may be surprised at how much you spend on coffee every month and may decide that buying a cappuccino maker is more cost-effective than paying $5 a day.
You don’t have to withhold all discretionary spending to get a handle on your expenses; you need to have a little fun and splurge on little things you enjoy now and then. It’s more about balance than deprivation. You may still want to splurge on that expensive coffee, but you may decide that you can settle for once a week and have more money in your pocket than every day.
Household budget software makes it a lot easier to get your finances under control. It helped me. I knew that I spent money eating out, but it wasn’t until I saw the number in black and white that I decided I needed to cut back, way back, on my eating out. I still eat out, just less often. It’s been much better for my bottom line… and my bottom! This can help you get a handle on your expenses too.
If you have questions or need assistance with your budget, contact me directly. If you cannot do that, seek a fee-only financial advisor near you.
