What is the best financial tracking software to use to get out of debt?
Saturday, December 12th, 2009 at
11:53 pm
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Filed under: Tapit Software
just like doug said, a spreadsheet!
to manage my spending in general i make a spreadsheet. at the top i put the amount of my paycheck for the week then below that deduct all my essential bills for the week. with an inserted formula i know how much i have left over for the week. so i dont say well in my account theres 100 right now so i can spend maybe 50 of that right now. i look to the end of the week and see that by the end of the week maybe i only have 20 after bills! so if i spend that 50 right now ill be short 30 before the week is through!! this could help you avoid spending money you wont have which is a first step in management. i make a new section starting with every paycheck and deduct upcoming bills so i always stay on top of things and dont end up short and have to rely on credit. so if you know after essential (fixed and variable) bills how much money you have left (say $75) then commit a portion of that and schedule a credit payment ($50?) for that week. in that week now you know you only have $25 to bs with. if you spend more than $25 at starbucks that week then you know you messed up and your week will show negative!
To get out of debt, all you need is a spreadsheet. Heck, you just need a piece of paper and a pencil.
Track your expenses for each month — your fixed expenses like rent/mortgage, insurance, and fixed bills, your variable expenses like utilities (gas and electric), food, gasoline, etc., your discretionary expenses (dinner at restaurants, movies and other entertainment, Starbucks coffee — anything above and beyond what’s needed to live life), and your emergency expenses (things you didn’t see coming, like a flat tire or a broken window).
Understand your expenses. Understand your take-home income. Then make sure that the first thing is 90% of the second thing, and the debt will dissolve.
Short of that, no software can help you get out of debt. It’s the change to your lifestyle that’s required.
Good luck,
Doug