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By Katherine Andrews
In his famous novel David Copperfield, Charles Dickens plainly states the financial formula for happiness: "Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." The ideal of spending living within one's means and spending less than you make is hardly a secret. But, unfortunately, actually applying it effectively in our everyday lives is a bit more of a challenge.
Most people today have several bank accounts, and even more credit cards. Throw in the fact that multiple people are spending from each account using debit cards, credit cards, online payments ATM withdrawals, electronic transfers and more, and it's easy to see why managing one's personal finances is more complex than most college trigonometry classes. For anyone who has ever tried to track all of that manually, budgeting probably ranks right up there with root canals and surprise week-long visits from your mother-in-law.
Finding the right personal finance software can change all that. Face it, if it's not easy, most of us just won't ever do it. We all know that we need to eat right and exercise. The crowded parking lots at gyms across the country each January testify to that common knowledge. But the emptiness of those same parking lots each February speaks to our lack of resolve in sticking to those necessary but difficult tasks. Tracking and managing our personal finances so we can stay within our means is just the same.
Imagine if you could find someone willing to go to the gym and get on that treadmill for you each day, while you relaxed comfortably at home reaping the calorie-burning effects. The right personal finance software program essentially gets on that financial treadmill each day, making your job easy, while you reap the financial rewards and the software program does all the work.
Here are a few tips of things to look for when looking for a personal finance software program:
- Automatic transaction retrieval – Most personal finance software programs are simply electronic checkbook registers, requiring you to manually enter in all your transactions. Most of us aren't going to take the time and effort to do that. Make sure that the personal finance software program you choose is compatible with your bank, and won't result in any fees to download transactions to the program. You don't want to pay for a personal finance software program and then pay again to be able to use it.
- Online bill payments – Just as personal finance software can make managing your budget and spending simple and easy, online bill payments can take away the hassle of paying bills. Make sure the software program you choose includes online bill payments or supports any online bill payment program you currently use and offers tools to manage your online budget.
- Reports – While any personal finance software tool should help you set aside money before you spend, it is also important to look back at past spending to identify any patterns of waste or overspending. Make sure your software program can generate reports to help analyze your finances and spending habits.
- Net worth tracking – Remember Charles Dickens' formula. If the software program isn't helping you to actually spend less than you make, it doesn't matter how easy it is to use or how cool the reports look. It should be helping your bottom line. And nothing will tell the story more accurately than a net worth statement. If your net worth isn't going up, it's probably time to find a new personal finance software program.
There are plenty of personal finances software programs out there. I use a program called Mvelopes Personal, which has helped me gain better control of my finances and improve my net worth considerably. There is always room for improvement, but finding the right software program for you can go a long way to improving your financial fitness, without ever stepping foot on that pesky personal finances treadmill.
As Leo Rosten said, "money can't buy happiness, but neither can poverty." Finding the right software program can help you manage your personal finances so that you have the freedom to spend your time and energy focusing on what will really make you happy.
*Based on a 2-year membership plan, other plans available.
**To avoid being charged the full service plan fee, simply cancel before the free trial period ends.
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