Using Software to track your Income and Expenses
One of the sure ways to gauge how you are doing financially is to track how much money is coming in and how much is coming out. With life's many distractions and obligations, this simple task of monitoring sometimes gets postponed or overlooked entirely.
One of the tools we recommend our client use is Microsoft Money or Quicken. These are relatively inexpensive software packages that help you track your money down to the penny. Not only does it tell you how much money you have, but it also breaks down where your money is going, and what you need to have available for future expenses. Let's say you have $1000 in your checking account. Rent is due tomorrow for $650. When you login to your Quicken or Money, it will show that you really only have $350 available. When you setup a recurring bill, like rent or your cell phone bill, it projects what you will have available. In addition, the software is also compatible with most banks and actually logs in and downloads your transactions automatically.
Let's say you spent $41.01 on groceries today. The software automatically deducts this amount from your current balance. Perhaps one of the best features of Quicken or Microsoft Money is the ability to view where your money is going. Every single purchase you make will download from your bank to the program and you appropriately categorize (ie. food expense, utility expense or even add a custom expense). At the end of the week or month, as you categorize your expenses, you will see where your money is going. In one scenario, I spoke to one client who setup the software (it's very easy to use and setup). She told me that in one month, she spend almost 30 % of her income eating out. We fail to realize how some things can add up. The software is also able to track investment accounts, pay your bills automatically, plan for a major purchase etc. The basic features are enough for most people and we encourage our clients to research these tools.
I didn’t think it was possible to cut my debt by over half. The stress of the phone calls and loss of credit was causing my blood pressure to skyrocket. Now, I feel much more relaxed and know I am on the plan to success. Thank you Practical Debt Relief.
Bill, Florida
Thanks for your hard work and being so patient with my Crazy Debt Situation. I am sleeping better at night because of you.
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