Software has changed our lives. I remember the day that my mother sat me down and showed me how to balance a check book when the monthly bank statement came in the mail. Since she is quite compulsive, she is one of those who goes through the statement line by line to ensure that it matches her own record exactly. If not, the discrepancy was always found in order to reconcile the two.
This is a healthy habit, but luckily software and the Internet allow us to dramatically reduce the time involved. I encourage people to download monthly bank, credit card, or other statements and reconcile them with their own records. The least time-consuming way to keep your own record is by using Quicken, MS Money, or some other financial software. These have the capability of downloading the activity for the statement period into the software (which matches your monthly statement) and assists you with the reconciliation between the two (often it can be automatic). A brief review of the charges is then sufficient to complete your reconciliation efforts and ensure your own records/software is up to date.
The other great benefit of software applications such as these, is categorization of income and expenses that allow you to easily see monthly expenses and track against a budget. This is especially critical when that budget is tight. Being familiar with where you stand financially will lead to better, and more frugal, purchasing decisions.
Check out your software options with the following links:
Quicken
Microsoft Money
Free trials are common so you can even test each of them out before making a purchase.
Tuesday, January 13, 2009
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