Module eight tools. You wouldn't trust a plumber to do his job without having some handy tools. There are a plethora of tools available to help anyone with a budget. In this section we will discuss the different types of tools that you could use to create and manage a budget. There are tools available for people of all types from the technically advanced to the technophobic software. Budgeting software is a program that you install on your computer that will help you with a budget.

There are thousands of software choices when it comes to creating and maintaining a budget. Depending on your needs, you can get free software or pay for the software. The median range for personal finance software is 50 to $65. Sometimes your bank may offer budgeting software to help you here are a few of the more popular software options. Microsoft Excel, Microsoft Excel has a bunch of Excel budget templates that are free QuickBooks, Intuit Quicken, money dance Common Sense phone applications. Why not put your smartphone to work and have it help you stay on budget.

There are lots of different smartphone applications out there that can assist you in formatting and maintaining your budget. These are programs that you download onto your phone. Some of the applications can function all facets of your budget, while others will assist you with tracking spending. There are a lot of these programs out there and they range in price. These programs can range between free and up to $20. But the median cost is about $3 and 99 cents per application.

Here are a few of the higher consumer ranked applications that can help with your budgeting needs. Good budget, mint bills and money buy into it. Wally, debt Tracker Pro by snap tap home budget with sink budget. The envelope system. The envelope system is an oldie but goodie in my humble opinion. You take the expenses that you've budgeted at up the total and withdraw the money from your banking account.

Then you label envelopes with your budget categories. This can be fun if you're creative, you can decorate them also. Here are some examples. utilities, food, gas, spending, money, entertainment rent, you put the money for those expenses in the envelopes. When the envelope for that category has no more cash than that's the end no more. That means that if you're spending money envelope is empty, you are not allowed to take additional funds from another envelope.

It just means that you are going to have to not buy anything additional. There are several benefits to using this system. Most people will spend more money using a debit or credit card. Having the cash on hand makes you more accountable for your spending. You will notice that you will start having cash leftover. Sometimes you can get a discount for paying cash.

No overdraft fees, expenditure notebook. Another important tool for any financially savvy person is an expenditure notebook. With this it's simple, you want to write down all of your purchases. Just like having a food diary helps people who are dieting this notebook will help you when you are spending money. If you are faithfully writing down your purchases, you will be able to easily see where your money is going each month. With that data you can see where you are wasting money and make more informed decisions about what cuts to make to your budget.

Case Study. Taylor has just started crafting her budget for the new year. She has set some hefty goals for herself and believes that she has the tools to achieve them. She downloads a phone app that helps her keep her budget on track. It seems to be working for her because she is always on the go and she is able to keep her phone with her at all times. Her friend Kevin is not as technologically savvy.

He has his own goals that he wishes to achieve using the envelope system and then expenditure notebook. He has talked to Taylor a few times about the phone application she uses for her budget but feels like Like he would do better with having the cash in hand. He feels like using his expenditure notebook. The envelope system gives him more accountability at the end of the day. The year passes quickly and both Taylor and Kevin have managed to stick with their budgets, even though the tools they have used are so different