Is Budgeting Software Really Necessary?

Budgeting Software for rainy day fundEveryone has some type of budget, whether they admit it or not. Simply put, a budget consists of knowing what bills are due and dividing up the income to pay those bills. Of course, it is more complicated than that but basically, everyone has to figure up their responsibilities every month and allot their income to pay those payments. But for most people, it is very easy to become side-tracked in their spending or to have a false security about their income when they see a lump sum amount in their bank account.

As we all know, money takes wings very easily and an expense that only comes every so often can upset the apple cart if planning is not made in advance. Also, you have those unexpected expenses that always come at an inconvenient time (it’s all inconvenient when you don’t expect it and you don’t plan for it).

Reasons for Budgeting Software

With that being said, here are two reasons why budgeting software is a necessity for anyone.

  • Commitment – Just like joining a gym helps many people stay committed to exercise, having budgeting software also helps people stay committed to a budget. A lot of people who really don’t enjoy the grueling task of keeping up with expenses and income totals would find a budgeting software program beneficial in that the program does most of the work for you..
  • Understanding your Budget – Instead of writing down all your accounts, gathering all the expenses, tallying your income sources, and setting goals by hand with pen and paper, a budgeting software program will walk you through the maze more easily (depending on the software) and help you set those goals for your income. Most packages also give nice reports and show graphs that help you understand where your hard-earned dollars went or where they are going. There are some excellent packages that will even help you plan ahead for your income so you have less managing time to spend each month. One such software is YNAB.

YNAB (You Need A Budget)

Personally, I like the YNAB software package. It is not free like some other software applications but the features it has make it well worth the money. The four rules of YNAB and the envelope system of budgeting are the crux of their success. Not only does this software help you get on and stay on track with a personal budget, but it changes your mindset to look toward the future of expenses instead of looking back at the past record. YNAB is an excellent product to consider if you want a good, reliable budget without the headache.

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