How to manage, spend, and invest the money? How to deal with expenditures? Is there a magic formula to solve all my finance problems? Money has a profound impact on one’s life and to manage money is a daunting task. It can cause even the most finance-savvy individual to become confused or short-sighted. Here’s the solution—Personal Finance Management. It’s the science of dealing with money that includes an individual’s or households’ every single financial decision and exercise including the acts of earning, sparing, investing and spending.
Personal finance matters incorporate acquiring of financial items, similar to mortgages, credit cards, life and home insurance, and obviously different investments and venture vehicles. Furthermore, banking is viewed as a part of personal finance, including checking and savings accounts and today’s online or mobile payment services, included but not limited to PayPal and Venmo.
A personal finance manager is a computer program extraordinarily intended to enable individuals to deal with their money related exercises. These budgetary exercises may incorporate, yet aren’t restricted to, monitoring investments and balancing checkbooks, which are conceivable offline and also online.
Let’s dig deeper into Personal Finance Manager
Personal finance management programming advancement began in 1983 with the establishment of Intuit. Scott Cook and Tom Proulx, the organization’s founders, saw the ascent of the personal computers and chose to create personal finance software with Quicken, their flagship product. The product turned out to be a standard for many families and was later followed by QuickBooks, the product that was aimed at small companies to help deal with their accounts.
Around a similar time, presented by MECA Software and designed by creator Andrew Tobias called Managing-Your-Money (MYM) – a kind of similar contending product was introduced, first running on the Apple II, and later on the IBM PC.
Later on, Microsoft released Microsoft Money, its very own personal finance management platform.
In 2006, an influx of online personal finance management tools propelled, with Mint and Wesabe leading from the front line. And since 2008, personal finance managers have become common is regular use, with software and tools for personal finance and lending sites.
Overall, aimed at managing money related decisions, a personal finance manager can make life simpler for its clients. Most applications can be customized to an individual’s budgetary objectives and necessities.
Allowing users to set cautions or updates attached to particular times ahead of installment due dates, personal finance managers enable them to pay bills on time.
Effective PFMs likewise enable individuals to customize spending classifications, which spares consumers from a great deal of perplexity when using predetermined categories for spending.
What’s more, the personal finance software likewise will help in cutting costs. It enables people to track their spending in some areas that may be pointless, and empowers them to make changes of their own in accordance to get back on track to financial soundness.
Finally, in many applications, PFM software enables people to track how close or far they are from achieving their financial objectives, in light of predetermined goals and milestones set amid account setup.