Financial planning scares you? These tools can help
What's the story
Managing your money can feel overwhelming at times, but it doesn't have to be a costly affair or require a finance degree.
With the right tools and a little commitment, anyone can start making sense of their financial future.
This article lists several inexpensive, do-it-yourself tools that can assist you in efficiently planning your finances without burning a hole in your pocket.
Budgeting basics
Utilize free budgeting apps
There are many free budgeting apps out there that make it super easy to keep track of your income, expenses, and savings goals.
These apps have pretty user-friendly interfaces, and they automatically categorize transactions from your bank accounts.
This way, you can see at a glance where your money is going each month.
Monitoring your spending patterns will help you spot areas where you might be overspending.
Spreadsheet tracking
Create a spreadsheet for expenses
If you like getting your hands dirty, building your own spreadsheet for expense tracking can be super satisfying.
Powerful programs like Microsoft Excel or Google Sheets let you create a financial dashboard that's perfect for your needs.
You can make categories for different types of expenses and income, so it's easy to see at a glance how much you're spending and how much you're making.
Saving simplified
Set up automatic savings transfers
One of the easiest ways to kickstart your savings is by automating transfers from your checking account to a dedicated savings account.
Choose an amount that fits your budget—be it $5 or $500—then time the transfer with your payday.
This "set it and forget it" approach guarantees you're saving regularly without the monthly mental gymnastics.
Learning Hub
Use online financial planning resources
The internet is full of free resources that teach you everything you need to know about personal finance, from making a budget to investing in stocks.
Websites like Investopedia offer articles, tutorials, and even simulators where you can practice trading stocks without risking real money.
By using these tools, you can increase your financial literacy and gain confidence in making informed decisions about your money.
Wealth watch
Track your net worth over time
Tracking your net worth (what you own minus what you owe) is key to seeing the full picture of your financial health.
You don't need complicated software; just update a spreadsheet every quarter with the current values of all your assets (like savings accounts, investments) and liabilities (like loans).
Seeing this number grow over time can be a powerful motivator to keep striving toward your financial goals.