Budgeting Software Headaches
There are plenty of options on the market today for those looking to put their finances down in a budget. Software is a good alternative to pen and paper, but it does have its share of drawbacks. What do you do when your software gives you a headache?
Software tools are an aid for those using a budget, but they are not a magic pill. Installing the software on your computer and in your information won’t make all of the debt simply disappear. The hard part of the work still needs to be done by you and your family.
Too many categories can be a prescription for insanity. Each transaction that you enter asks for a category. Sometimes the categories that you have chosen for yourself are not listed in the software program. Or, it will ask for a subcategory. When you are in a hurry to enter everything, this can be a nuisance.
Software programs like Quicken and Microsoft Money track your deposits once you’ve entered them into the system. They ask for information about recurring transactions and can subtract them each month for you. One thing that software doesn’t do is keep track of interest earned and fees charged by the bank.
This is the same issue I had with my check register. I always had a different total than the bank. Fees charged by banks for ATM withdrawals and checks written add up and have to be accounted for. To do this, you’ll have to wait until the end of the month to view it on your online banking statement or the paper one that comes in the mail.
There is a program offered online that will retrieve information from your banking institution. A fee is associated with this program. Since you are trying to budget and save money, you might not want to add another expense when you can budget using other options.
Some budgeting software helps you to reconcile at the end of the month. To check on spending before then, you will have to utilize receipts and online banking statements. Review your budget on a regular basis for any bad spending habits that are creeping back in.
When your software gives you a headache, try something else. I’m not talking about giving up on your budget. Use the online resources provided by your bank. Free budget worksheets are available online. You can even find free e-courses that teach regular folks how to budget. If you have to, place cash in an envelope for each person so they know what they have to spend on themselves for the month.
Simple does not mean outdated. People pulled themselves out of debt before budgeting software ever came along. Software is a useful tool but if it is not working for you, try other methods to keep your budget alive.
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