Keeping track of your money is important. Yet, it is something that relatively few of us do effectively. This is probably why the average UK household spends £900 more than they earn. This habit means that many of us are ending up in serious debt. Fortunately, breaking that cycle of overspending and growing debt is relatively easy to do. There is plenty of easy to use tech and apps around that you can use to keep track of your financials, save money, eliminate debt and start to save for your future.
Keeping track of your investments and savings
The first thing to say is that if you are someone who has been able to save and invest some of your cash, don’t relax too much. You still need to track what is going on with your savings and investments. This investment app from Wealthify enables you to do this.
At a glance, you can see how much you have saved or invested and see how much money you are making. Should it be less than you were expecting, you can use the app to switch to another investment vehicle. It also enables you to take any spare cash you have in your bank account and invest it immediately. It is a very handy feature because you can lock it away so that you are not tempted to spend it on things you do not need.
Closely monitor your bank accounts and credit cards
Keeping track of what you have in each of your accounts and what you owe is also vital. Most banks, building societies and card companies now provide you with an app to do this. They are designed to be secure. But, signing in and out of each one can be time-consuming. Plus, when you look at your finances in this piecemeal way, it is hard to clearly see the whole picture. Personal finance management apps like Money Dashboard can enable you to do this. But, before using one it is wise to check that the financial institutions you use allow you to use PFM apps. The vast majority do.
Put together a spreadsheet
If you do not fancy using your phone to keep track of your money, consider using your PC to do it instead. Again, there are plenty of online and offline software packages that enable you to do this. But, if you are worried about security, you might want to do it the old-fashioned way and set up a budgeting spreadsheet. This could be kept on a pen drive that could be locked away from prying eyes.
The good news is that you do not have to create one of these from scratch. There are plenty of free Excel and Google Docs home budgeting templates for you to download. You can find an example of an excellent one, by clicking this link.
Regardless of what method you decide to use it is important to be consistent. You need to get into the habit of updating what you have spent every day. This will ensure that the information you are looking at is accurate and up to date enough to be meaningful and useful.
**This is a collaborative post**