While everyone needs to know how to manage their own personal finances, it’s not an easy task. To plan for financial success in the future, you need to take the time to learn as much as you can about personal finance and how to make decisions that will impact your financial future in a positive way. Fortunately, you don’t need to do all of the planning on your own. There are plenty of tools available to help you succeed.
You Need a Budget (YNAB)
You need a budget is a personal finance application that can be used to create and manage your monthly budget. It’s designed to help people create a plan that gets them out of debt and teaches them how to manage their money with the future in mind each month. The concept is simple. You assign a “job” to every dollar you have by dividing the money into different categories as you obtain it. This way, you don’t see a $500 balance in your checking account and assume that you’re flush with cash for the month. Before spending money on things, such as dining out, you consult the YNAB app to see if you have funds allocated for that purpose. This keeps you from overspending, which helps ensure you have the money you need allocated to paying your bills, paying down your debt, and saving money each month.
Mint.com is a budgeting website and app that’s similar to YNAB, but it takes budgeting a step further. In addition to creating a budget to manage your finances, Mint.com allows you to pay your bills online, track investments, and view your credit score. The site also offers you tips and advice to improve your financial success.
If you own a business, Quickbooks is a great option for managing both your business and personal finances. In addition to creating a budget, paying your bills, and tracking your expenses, Quickbooks makes it easy to invoice your clients and track incoming payments. This method keeps all of your financial information in one place, which makes it easier for you to prepare your taxes or financial statements as needed.
If you’re looking for a free and simple way to create a budget and track your expenses, you can use an Excel spreadsheet. Consider creating a new tab for each month of the year, and use it to track all of your income and expenses for the month. Additionally, create a main spreadsheet for the year that tracks your totals for each month in one place to make it easy to see whether or not you’re on track for the year. You can also create separate spreadsheet tabs to keep track of your total debt and any investment accounts you maintain. Use the functions in the spreadsheet and keep it updated in order to view your finances with accuracy in real time.
Ultimately, there are plenty of tools available to help you with your personal finances. All you need to do is find the one that works best for you and use it correctly.
~Here’s to Your Financial Health!