Managing your personal finances is essential if you want to save money and avoid overspending. Knowing when your money comes in and how much it is, plus when and where it goes out of your bank account, should be a requirement for every adult. But too many people don’t really know how much they spend or sometimes even how much they get paid each month. If you aren’t very organized when it comes to tracking your finances, there are some useful tools that make it easier. You can use your computer or mobile device to manage your money more sensibly.
Track Your Spending
Having a basic budget and tracking what you spend is one of the key things you should be doing to look after your money. Some people just use a simple spreadsheet, but there are lots of tools that make it easier to do. You can use apps like YNAB (You Need a Budget) and Mint to set out your budget and keep track of what you spend each month. Some budgeting tools require you to input what you’ve spend yourself, which can be slightly fiddly. Others allow you to connect your bank account and other things, so the tracking happens automatically.
Create Your Own Pay Records
Another useful thing you might want to consider doing is creating a record of what you’re paid and when. This might seem like an odd thing to do, especially if you get records of money paid into your bank account on your statements. However, there are advantages to generating paycheck stubs for your records. One of the reasons it’s a good idea is that you have an official record of your pay, which you can use as proof of income. This can make it easier to apply for loans and credit cards, to offer one example of how that can be useful.
Manage Your Debt
Many people have debts of different kinds, from credit card debt to a mortgage. For most people, paying off their debt as soon as they can is the goal. They don’t want it hanging over their head, and they definitely don’t want it to overwhelm them. Using tools to manage your debts makes paying them off simpler. Start by looking at free tools, like Unbury.Me, Debt Eliminator and Mint.com Financial Goals. You can also choose paid options, but it’s important to consider if they are worth the cost first.
If you have any investments, being able to keep an eye on them is important too. Luckily, there are also tools to help you watch over them. For example, Personal Capital helps you to manage your budget and look after your investments too. Nutmeg is another example of an online investment management tool that can be useful to use. Having access to your investments from an app on your phone or computer can be helpful if you want to be able to check on them at any time.
Look after your finances with the right tools to track where your money is going. Better money management could help you save and make more.