Creating a Household Budget - Fast

When it comes to managing your money, there are many options out there for seeking advice. Many people use the services of a financial planner, others rely on their own knowledge. Regardless of the means by which you manage how much money you have, it is extremely important to know just that. How much do I have?

Get the Software

One of the fastest and easiest ways to keep track of household finances and create a household budget is via regular use of money management software such as Quicken, Money Plus or Microsoft Money. Most companies offer products both for personal finance and for home and business finance. Programs such as Quicken allow you to track, balance and budget your money quickly and easily. This includes the ability to track loans (car, mortgage etc), investments and accounts and allows you to see your net worth at a glance.

The Big Picture

Initially it may not seem to you, that using these types of programs is necessary. I believe that it is crucial. You may know the balance in your chequing account, but do you really have a sense of how your are doing on a big scale, ie. your net worth. There is nothing more empowering than being able to be in complete control of your financial picture by having the up to date balance of every account, credit card, GIC, Retirement savings accounts or other investment right in front of you on a single screen.

Time Saving Attributes

• You can download account statements directly into the program, so data entry becomes effortless.

• You can create a household budget for your family and the program immediately flags if you’ve exceeded the budget as you input your statements or transactions, so there is no need to spend time manually calculating your spending or trying to develop a budget on paper.

• Come tax time, all you need to do is print out a report for your accountant, saving hours and hours of adding up receipts and bills. Tax preparation can be minimized to literally minutes.

• For individuals who work freelance or have home businesses, the combined home and business version makes creating invoices, tracking accounts receivable and business expenses quick and easy.