Personal finance software

Personal finance software comparison chart for 2024

Personal finance software explained

Many people fall into the trap of living beyond their means, piling up debt and facing the constant stress associated with managing – or mismanaging – their money. If you’re one of these people, or you simply want to keep a better track of where your money goes, you can benefit from cash flow management software.

The traditional ways of managing a household budget range from balancing check books by hand, through to excel spreadsheets, to keeping shoeboxes full of receipts and IOUs. But technology now exists to help you manage your finances more conveniently and more effectively. Personal finance software puts your finances in front of you where you can clearly see them. You can collect all your financial information in one place, from bank accounts to credit cards and investment accounts.

When you can see where your money is going you can make smarter financial decisions. Using the tools provided in a personal finance management package you can set and manage a household budget, get control of your finances so you don’t miss bill payments, and pay off your debts. Studies have shown that people who regularly monitor their money end up wealthier than those who don’t. And when you have all your financial data in one place you gain peace of mind and clarity.

If you’re one of the millions of people who look at their paycheck at the beginning of the month, feel relieved by the amount that’s there and go out for an expensive steak dinner, only to discover at the end of the month that you owe car insurance, you can benefit from personal finance software.

Use the program to create a simple budget where you allocate your funds to specific purposes like groceries, car insurance, rent, entertainment, etc. You can set spending limits in each category to ensure you don’t spend more than you earn, and even set aside money for a rainy day. Good personal finance software gives you a visual representation of how much money you have spent, and what you have spent it on.

Run reports to show your spending habits, and use these reports to create long term financial goals. Perhaps you want to save for an anniversary vacation, or pay off your credit card debt. Personal finance software also allows you to manage your investments and record expenses on-the-go using a mobile app.

What to look for in personal finance software

Before you sign up with a personal finance program or purchase your financial management software, understand that it will take a little time to get used to the features in the program and also the methods behind the money management system in each package. Remember too that you do need a certain amount of self-discipline and the commitment to stick to a budget. Personal finance software requires an initial time investment to set up and learn, but the program you choose should be easy to use and simple to navigate. A personal finance software package should save you time and stress – not create it. Here’s what to look for when comparing programs.

Accounts

A good personal finance package allows you to centralize and monitor different accounts so you have all your financial data in one place. You know how it is; you start the month thinking you’re flush with cash because your balance stays high, but you forget that you paid the house insurance on your credit card until it is taken out of your checking account in the middle of the month. You need to be able to see exactly where you are spending money so you know how much you have left. Consolidating separate accounts gives you power over your finances.

You should be able to sync with your financial institutions and have them give you real-time access to your data. Many budgeting software programs link direct to online banking and your transactions are automatically downloaded. Or you can import bank statements and reconcile your transactions manually. In either case it should be quick and easy to enter transactions and keep your accounts up to date.

Budgeting

Personal finance software helps you set up a budget for your monthly spending. Using the program you split the money you have in the bank between categories like rent, insurance, cell phone, gas, etc. Choose a program where you can set your own categories depending on your needs, and one that allows you to change your budgets as you go, allowing for unexpected changes. For example, if you need to spend more money on the car because it needs an oil change this month, you can move some money from a category that is underused that month, such as groceries.

You should be able to plan for future expenses by saving a little each month, for example a vacation, or a car repair bill. Look to see if you can roll over unspent money to the next month, and calculate your budget for coming months based on previous spending habits. Some products give you upcoming bill alerts or alerts when you are going over on your spending limits.

Reporting

Find out if the software allows you to view your financial data quickly and easily in report form. Most software packages give you a quick overview of your finances, and you should also be able to drill down if you need to into detail. Can you slice and dice your data? What format can you use to set up the reports? Can you print your reports or save them to your computer?

Mobile App

Most personal software management packages come with an integrated mobile app. Check that yours is compatible with your operating system. It is important to have access to a mobile app if you like to enter expenses while you are out and about. For many people this is essential, as they are liable to forget to input transactions if they wait until they get home.

A good mobile app should be easy to manage, quick and convenient to use. Check that the app allows you to view your balances, enter expenses, and update categories. Many apps also allow you to pay bills and take pictures of paper receipts to attach to your accounts.

Security

Security should always be a concern when you are dealing with your own financial information. Look to see how the software guarantees the security of your data. Does the developer follow industry standard encryption techniques, such as those used by banks? Do they follow best practices? Many personal finance software packages are verified by TRUSTe and VeriSign.

Help & Support

Great personal finance software is not just an online spreadsheet, but provides links to an inspiring community of knowledgeable people who will help you manage your money and become richer in the process. Look for software that is linked to a helpful and encouraging community, with a strong following of people who are enthusiastic about the philosophy and the methods behind its money management techniques.

It is also important that you can access technical support if you need it through a telephone, email, or live chat function. Articles, blog posts, online seminars and FAQs are all valuable additions to the personal finance management package.