The end of the month is rapidly racing against your checking account. Maybe you thought that you might have enough money this time to pay some of the bills piling up on your desk, but then another financial “emergency” hits. You feel the blood flushing into your face revealing the frustration of not having enough money again. “How does this keep happening?” you think to yourself. You are not alone. Many Americans face the same scenario each month as you do. There is good news though. A personal financial plan, or budget, can set you on a path to use your money wisely and take the stress and disappointment out of money management. And, with all the online tools available today, it has never been easier to make and keep a budget. Here’s what to look for when choosing the right financial software.
Security
Since the software will be working with your sensitive financial information, you will want that information to remain safe.
Read: Stop Spending Money: How to Stabilize Your Financial Future
Unsecured software could be hacked so that your account numbers or credit card information could be stolen. You have probably heard in the news of a number of data breaches from large companies. So, make sure encryption is used when your software transfers data from your device to your financial institution. Also, check to make sure that any data stored in the cloud has robust security.
Automated Budgeting
Managing your money needs to be as easy as possible if it is going to be successful. A budgeting software tool that can project a budget for you after inputting your basic information will make setting your money goals a snap. Most software applications have preset categories with powerful budget wizards that take all the tedious calculating out of the budget process. Whether you get paid weekly, bi-weekly, or even twice a month, the wizard will be able to figure out how much income you will need to pay your bills on time.
Bill Pay
Once a budget is set, a good software will be able to pay your bills for you so that you never miss payment. Never again pay a late fee or interest on a credit card bill! This can save you money that would otherwise be wasted when a bill gets lost in your pile of papers that have accumulated on your desk at home.
Data Import
Wouldn’t it be great if you could see all of your financial balances from all of your accounts in one place? A good financial software will include this important tool so that you will have up-to-date information from your banks, credit cards, PayPal account, IRAs, 401Ks, and other investments in one place.
Read: What is Payroll Software? How to Choose the Right Payroll Software for your Business
Once the software has the information, it can then adjust your budget according to real-time data.
Expense Tracking
When you purchase an item online with a Google pay or Apple pay account, the software will recognize that purchase, suggest a budget category, and track the expense in your budget. You will be able to see at a glance what your actual expenses are. How much do you really spend per month at Starbucks? Rather than blindly taking a guess, you will concretely know how much it is. You may be surprised to see your actual spending habits on the screen of your app.
Investing Tools
When you have your spending under control, you can focus on using your wealth, to make more wealth. Investment tools will not only help track your current investments and help set financial goals, but also analyze how effective those investments are. You can compare the performance of your mutual funds from year-to-year with the national average to see if your investment is sound. These tools should be able to produce custom reports so that you can know exactly how your money is performing to meet your goals.
Don’t let another disappointing month pass you by. However you choose to keep your budget, make sure you start today. Your financial freedom and peace of mind is within your grasp.
