Do I Need Financing Software?
Aren’t personal budgets fun? Just kidding. We don’t like them but we could all benefit from setting up a budget for our home. Finances can get out of control if we aren’t careful and having a way to track spending is useful. If you don’t know anything about how to begin, financing software can be a help.
To answer the question of whether or not you need to use financing software, you need to look at your individual situation. For the most part, a budget is not hard to start. Keep your bill stubs and your paycheck stubs in an envelope for a month. At the end of the month, write them down on a piece of paper.
Financing software makes it easier to record your information. Programs like Quicken and Microsoft Money have categories built in so you just click on the one that applies to your needs. When you enter your beginning bank balance, they do all of the calculations for you. Computers that have Microsoft Office pre-loaded on them offer Microsoft Money.
Software does have drawbacks. There is the necessity of entering each and every transaction into the program. You can do it once a week, but it has to be done if you want the software to do its job. Some people don’t have the time to sit at the computer. If no one wants to do it you may have to draw straws.
The information is actually being entered twice. You write it down in your check register or jot a note on the ATM receipt to be copied into the computer. Most banking institutions offer online banking. You can check your account as often as you like. Since all transactions don’t post immediately, you will have to check them off in your register when they do post. Don’t make the mistake of thinking that there is more money in the account than there actually is.
Using online banking eliminates the need to wait until the statement comes to reconcile your account. It also lets you keep track of funds without the software. There are no categories listed but if you use general categories for your expenses this is not a problem. Record category names for each transaction in your check register.
People who do not have access to a computer can still track their spending the old-fashioned way. Use a lined ledger book to create a spreadsheet. They can be purchased at any store. You would still record checks and keep ATM receipts to record them in the ledger book. Using a pencil makes it easier to correct mistakes. Keeping the book in a central location allows family members to view it at any time. Be sure it stays in a hidden place so no one outside the family has access to personal information.
Financing software is a great thing to have but it is not necessary for most people. If your situation is complex or you are always on the go, financing software that you can access online from your PDA will help you to stay on track.
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