Setting a Family Budget with Budgeting Software

by admin on August 15, 2012

Now that you are married, have a couple of kids, a car, a house, credit card bills, and mortgage payments, you may be looking for ways to set a budget and track your spending. Budgeting software is a user-friendly way to keep track of your expenses and income and use the numbers to understand your spending. In essence, you input what you spend, what you owe, and what you make, and the software organizes it for you. Some types of software can bring all of your financial account together, either on your mobile device or online, automatically categorizing all transactions. This allows you to achieve your family’s financial and savings goals by setting budgets. The software automatically pulls all financial information and categorizes and updates it. You will find it easier to keep track of bills and can opt for bill remainders sent by email or to your cell phone notifying you of any upcoming payments. Having bill remainders sent on a regular basis helps you pay your bills on time. The software automatically adds bills, and you can manually add more bills.

The budgeting software will also help you to track investments and find ways to invest. This is a good tool for people who like a diversified, low-cost investment portfolio as well as those who prefer to have a customized investment portfolio selected for their needs and requirements.

Some people are hesitance to use such software because of security anxieties. For the software to access your transactions, you have to give it your online banking access code. It gives the software read-only access to your bank accounts. Security is not an issue in this case, and it is as good as what most financial institutions have in place. If you choose to use such software, the main problem is that you may break your cardholder’s agreement, with your bank holding you liable in case something happens to your account.

Apart from this, there are many other benefits to using budgeting software. The software can help you to come up with projections for the future and compares spending month-to-month and year-to-year, depending on what fits your style. In addition to setting a family budget, the budgeting software shows you how much money you will save by cutting back in some category. You can plan for recurring monthly expenses and one-time expenses. What is more, the budgeting software shows you how your spending habits and decisions affect your budget and how much you have left at the end of the year or month.

With the help of a budgeting software or finance management software you can reconcile and track transactions for different types of accounts – checking and savings accounts, cash, lines of credit, credit cards, etc. You can make use of user-defined expense and income categories, actual comparison reports vs. budget, budget projections, and more. Moreover, you can make use of a number of beneficial features to calculate net income, split transactions into budget categories and multiple accounts, and schedule transactions. Features also include charts and reports, transaction templates, and support for multi-currencies. Payee and category management is also simplified, and you can easily merge two payees or budget categories at any time. All this can be done with simple drag-and-click operations.

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