Five ways personal finance software can help you take control of your financial life

December 7, 2020


Managing your finances can take a lot of time and energy. Balancing the books for your personal or business ventures doesn’t need to be a frustrating or time-consuming process. The same goes for managing savings and investments. Why not automate some of these processes with software tools? It’ll make your life easier and more manageable while saving your precious time for other activities.

Think of personal financial software as a set of tools to help you accomplish your financial goals. Using them wisely should always yield positive results and set you on the path to better financial security and future prosperity. Here are a few benefits of using them:

Budgeting made easy

Budgeting is a central pain point for many of us. While building a budget can be easy on paper, adhering to one is a significantly more difficult prospect. Financial management software can help by using data and analyzing your spending to help you budget better. It’ll look at recurring bills or expenses and give suggestions for improvement. You can customize the budget to suit your needs and track your progress, effectively uncovering savings opportunities and the agency to make adjustments on the fly to fit your lifestyle.

Bill management

Managing bills is more of a pain than budgeting sometimes. You want to manage your expenses effectively and have some extra money left over, right? Sometimes not paying a bill can turn into a missed mortgage payment or an interruption in your utilities. Other times it can result in a fine or penalty. Either way, you want to avoid problems before they even have a chance to happen.

Taking advantage of an array of specialized personal finance software can help you manage bills and take total control over your financial life. The most valuable benefits lie in managing/paying both online and offline bills from a single place. You’ll need to add any non-electronic bills to the system, but it’s easier than ever to manage everything from a single program once you do. Bills get paid either digitally or with checks issued by a check-pay service that writes physical checks on your behalf as you pay your bills from the all-in-one digital bill management hub.

Managing your spending

Do you ever wonder where your money is going each week? Maybe you want to find a place to cut extra spending. If you’ve ever faced this oddly specific financial nightmare—as many of us have—then it’s time to take control of your spending. Let’s face it; the average American spends approximately $1,497 per month on non-essential items like extra coffees or streaming services they don’t use. Financial software can help out with this in a few ways:

  • Track your spending on essentials like rent and groceries
  • View all transactions and accounts in one place
  • Maintain your budget effectively
  • Search your transactions with various filters (amount, merchant, vendor, etc.)
  • Review transactions in real-time and monitor household transactions
  • Find opportunities to cut expenses and reign in your spending.
  • Learn about your spending habits in a way that can help you change them

In addition to these useful features, you’ll get an idea of how much money you pay your bills. You can also forecast your financial health long-term by looking at your data and spending trends. Excess spending can cause significant problems down the road, so the sooner you gain control over it, the better.

Simplified retirement investment and management

Saving for retirement is difficult in the best of times. With so many retirement plan options available, it may be challenging to understand your funding sources, net worth, liabilities, and assets. Why not simplify things by using financial software? Whether you have a 401(k), Roth IRA, or some combination of both, personal financial software organizes everything in a single place where you can see a snapshot of your investments and manage them with ease.

On top of retirement investment features, you can manage your accounts before and after retirement. The software can track your current and possible future spending to create a budget fitting your unique situation. You’ll also see a detailed breakdown of its impact on your retirement across several categories and accounts. Retirement planning has never been more straightforward.

Business and property management

Do you run a small business, manage a rental property, or some combination of both? Financial software can help with those too.

If you run a small business, a minefield of taxes and tax issues comes with the territory. Finance software helps considerably around tax time by helping you figure out expenses and deductions. It can also help you get a handle on your business’ assets and liabilities in a manageable way. It comes in handy with property management as well.

Managing a property is complicated, especially if you have multiple rentals. Luckily, plenty of software options are available to take all the hard administrative work out of the process. Here are a few of the ways it simplifies your life as a landlord:

  • Tracking expenses (repairs, damage, rental)
  • Track property value, loans tenant lists and documentation
  • Stay on top of property status and occupancy.
  • Maintain contact information, agreements, and security deposits.
  • Keep track of rentals rates, lease terms, security deposits, paid or unpaid/late rents.

When push comes to shove, a personal financial software suite can solve all your money management needs. Selecting one to fit your own business or lifestyle is a wise investment in your financial future, and you’ll be reaping the benefits for a long time to come.

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