With many different bills and expenses to pay each month, it can be difficult to manage personal finances and stay on top of each expense without over drafting or missing payments. With the right resources, it can be easy to keep track of money and prevent overspending in an organized way.
1. Excel Spreadsheet
It can be easy to stay organized by creating categories for each expense in a spreadsheet on the computer with each expense allocating a certain amount that needs to be spent. Excel spreadsheets automatically add up certain costs and columns, making it easy to manage money and prevent too much from being spent on one area without miscalculating.
Many people prefer the old-fashioned way of staying on top of their bills by using different labeled envelopes that hold cash for what can be spent. The method is primarily used to prevent overspending, as envelopes can hold grocery money, gas money, and even each utility expense.
3. A Notebook
By handwriting how much money has been spent for products or services, it can be easy to maintain an actual record of finances without losing the data on the Internet or on a computer document. It can also make it easier to calculate how much money is left for the month with simple mathematics skills.
4. Expense Software
Several different software programs can be installed on a home computer to insert personal finance information for an automated way of calculating how much money is left and where certain budgets have been exceeded. Warnings, monthly summaries, and even pie charts are available to record spending habits and track personal finances in an organized and accurate method.
Some types of software even guide users on where they are overspending or if they need to have more money in savings, a 401k, or even going towards debt.
5. Budgeting Websites
A number of online websites keep track of financial data via the Internet for a secure way of tracking different budgets and accounts, even linking bank accounts to the programs and updating where money is spent within minutes. The websites also provide several different resources related to the data, between credit score websites, loan companies, and tips on managing the finances more efficiently.
The easiest way to lose track of your money is by always paying with cards. While credit and debit cards are convenient, they also make it very easy to overspend. Using cash does two things to help regulate your spending. First, it limits the amount you can spend. When the cash is out then it is time to stop spending. Second, it works as a way to visually see how much you are spending. Even if you have the extra cash you may be less willing to part with the money when it is actually in your hands.