If there is one thing that greatly contributed to current financial crisis is the mismanagement of available funds. This is also true on a personal level, because if you analyze the spending habits of many individuals, you’ll find out that during periods of economic boom people tend to spend money carelessly, only to realize later the mess they’ve gotten themselves into after the debt becomes unbearable. There are two ways a person can be able to manage their finances, and thus be able to avoid these embarrassing moments when your credit card is declined when you are about to pay. The following article by Saurabh Kanwar gives a glimpse of the two methods of managing your finances.
We have often heard of the adage ‘Penny saved is the penny earned’. How true is that, and how well applicable in our fast, technology driven lives is a pertinent question though. Most of us agree that money management is the key to success, and thus we plan it logically, or at least give it a try. While doing money management manually may involve risks, it is many-a-times not successful. Sometimes we get too lazy to open the money record book and fill the entries, or we do that in such a manner that no-one, but only we can understand what amount is debited, and what is credited! This sort of half mismanagement can be more deadly than keeping no tracks at all. To keep a trail of where your money goes, few available options are:-
A) Financial Planners
You may hire a financial planner, or keep an accountant who would scrap few things in your money management books, and keep you informed of your profit/loss. Let us now see how is this not worth it:- Firstly, it has become passé! Those heavy ledgers with scary columns of who gave what amount of money and to whom, is certainly not what most of us would expect today. Secondly, the accountants would charge you much, as on their end they have done it manually so they charge labor costs! And thirdly, they are not applicable to all sects of people. A kindergarten or primary class kid may not even know what an accountant means! However, an alternative is here…read on.
B) Online Money Management Service
Managing money online, with minimal to zero assistance sounds refreshing. There are many online money management softwares that help you keep track of your money. And when they say money management, they not only mean distinguishing the profits from losses. Many of them include features like:-
- Feasibility for people of all ages and nature
- Flexibility of setting up multiple accounts
- Formulating payable bills or deposits to be made
- Maintaining periodic budget limits, and sending overshoot results
- Overall budget maintenance reports
- Supports multi currency
So if an entrepreneur wants to have a magnified view of his business budget, or an elderly needs to know the maximum money he can save in a said time period, or more yet if a kid needs to manage his pocket-money, the online money management softwares could be of much help.
A word of caution in the end: Check the credentials and authenticity of such websites before you log in. Few dubious websites may use your data for not-so-good reasons. Stay managed, stay successful.