The most difficult step to managing finances is typically the first: tracking one’s own funds and spending habits.
– Cue the ominous sarcastically-cynical-futurist introduction:
In a time of digitization, the value of money has deferred more to its potential than its immediate availability as the economy narrows in on utilizing debt, data, and consumer loyalty. Innovations in marketing and payment methods have steadily pulled away from the basic arithmetic of cash-in-hand, and many of what were everyday expenses are now part of more complex calculations which, if not careful, can cost a person more than he intends to spend.
Budget managing software is a popular solution to simplifying and visualizing the process of money management. Businesses have used these for a long time, and there are a lot of free software and spreadsheets designed for personal funds and expenses. You can browse the internet for them, but a site I often frequent is altertantiveto.net, a great indexing website that helps people find unique or specific software or products.
There are also online services or mobile apps can link to financial accounts to track spending and perform calculations in real time. Some even have custom paths designed to help customers reach particular financial goals. Popular services for beginners that fit this bill:
However, if like me you are apprehensive about integrating a product while not knowing much about the concepts and mechanisms it uses, I made a little excel spreadsheet that will hopefully get some of the larger points across. The main focus is to get you in the habit of tracking your own behavior, and showing how your idea of how far money can go compares to the reality of your spending habits. I used a more convoluted version from high school through college, but I cleaned it up so that hopefully it can serve you as well.
