A Guide to Personal Finance Tools

When you start making money of your own either from the company you just started or a job you found, there arises a need to manage your finances well so that there can be accountability and good use of your hard-earned cash. The world today requires that you are careful with the way you spend your money because many things can happen and if you are not cautious enough, you might find yourself in a difficult financial place without expecting. This is the reason why there exit personal finance tools which are resources that can help you manage, budget and account for your cash wisely. There are many examples of financial tools that can help you track your money. Learn more about  wealthfront vs betterment,  go here. 

The first one is a simple notebook where you can keep records of how you will be spending your monthly salary on expenses such as water and electricity bills, house rent, food, clothes, school fees and other important things that are necessary for your daily life. You can estimate the amount that you might need for miscellaneous purposes such as medical bills and entertainment. Such financial tracking is easy and cheap because, at the end of every month, you can be able to account for almost all the money you made and the debts you have. Find out for further details on  Investormint  right here. 

The second tool that can be used to manage your simple finance problems is the envelope system whereby you budget your monthly income into small amounts for different uses and then you can keep the money in separate envelops which are labeled. This method is cheap and efficient when you are dealing with small amounts of money because you can easily account for all the expenditure at home.

Lastly, the most effective way to handle large amounts of monies that involve banking and accounting procedures to produce financial reports is to use the available financial programs and computer resources. These resources can be directly linked to your bank account with your permission so that they keep track of every transaction activities and give you a report whenever you want to look at the flow of your money. An example is an excel spreadsheet which is the simplest tool that you can use to feed in raw data about your financial activities and then it can generate a report that indicates your financial status. Other applications can be installed on your networked device, and it helps you understand how you are spending the money you make. Take a  look at this link  http://smallbusiness.chron.com/key-tools-planning-finances-25423.html for more information.