Managing your personal finances is an issue that plagues just about everyone. Regardless of how much money you are making right now, you always can always improve your financial situation by finding ways to save. You can make saving and tracking your expenses simple by using good budgeting tools that will help you along the way. Here are five easy-to-use budgeting tools that you should be using right now:
A digital spreadsheet is a great resource to easily manage your finances by creating monthly cost reports and budgets — sort of like an accountant. A digital spreadsheet keeps track of numbers consistently and without error. What’s more, once you have a spreadsheet set up, you have to do virtually no work to keep track of cost averages, totals, and more because it will do all of the calculations for you.
Automatic savings accounts
It is hard for everyone to save. Once you get paid, a large chunk of your money typically goes to your bills, and the rest can disappear before you know it. This leaves very little room for your savings. However, it is very hard to spend money that you do not even know you have. That is why you should always have one or more automatic savings accounts.
An automatic savings account takes money directly from either your direct deposit or your chequing account so that you have a consistent cash flow going into your savings. Even a small amount per week can quickly add up to thousands. For example, $20 per week amounts to $1,040 per year.
Late payment fees and penalties have evolved into a multi-billion dollar business. Every year, credit card companies, loan companies, cell phone companies, and utility companies are hoping that you make the mistake of forgetting to pay them on time so that they can charge you a fee that may be even higher than the monthly payment itself.
The wonders of modern technology can save you from ever making a late payment again. All you need to do is set up automatic payments with your creditors and other companies who bill you each month. Most of them will have an automatic payment system already established, and it will only take you seconds to set up.
This budgeting tool might sound odd, but it is a great resource to help you save; here is how it works:
Sectioning off cash into envelopes for certain expenses creates a physical limitation to how much you can pay. As such, you have to be careful about how much you spend, because if you run out of cash in your gas envelope, you are in trouble that month (or you need to readjust your budget).
Use internet-based digital budgeting tools
Modern technology — specifically the internet — is too important to ignore as a budgeting resource. There are many free internet-based budgeting resources that can help you out a lot.
Some of the best internet-based digital budgeting tools offer a variety of benefits, including budget management, financial health analysis and future budget projections. As we mentioned earlier, most of these types of tools are free, so do not worry about the possibility of having to pay for this personal budgeting resource.
For more help with your personal finances…
To learn more about how to save or for help getting out of debt, contact Credit Counselling Services of Atlantic Canada Inc. We are a team of financial experts who can help you save and get your finances back on track. We can be reached via phone at 888-753-2227 or via our website at http://solveyourdebts.wpengine.com.