How to use Budget Software

Using budget software is a simple, hassle-free way to stay on top of your personal finances. Keeping track of your expenses, bank account balances, credit card bills and loan balances is easier when you can keep all the information in one spot, with much of it updated automatically. Making and sticking to a budget is important for your financial success, so make it a priority. Here's how to get the most out of budget software.

Instructions

Difficulty: Easy

1. Choose your budget software. Look for a software that meets your needs--and your budget! While there are several expensive software programs you can buy, they may be too involved or complicated for your needs without features you really want. The nice thing about free software is that you can try it out and switch to something else if you don't like it.
2. Install your software on your computer, or create an online account if the software is web-based. Make sure that your personal information is carefully guarded with bank-level security.
3. Fill in your bank account and credit account information, so that your expenditures and bills will be tracked by the software.
4. Create your monthly spending plan, balancing your budget until your income equals your outgo. This is known as a zero-based budget. Your savings, investments and expenses should all be included in your monthly budget. Be sure not to overlook irregular bills or quarterly payments.
5. Pay your bills and record the payments in the software. Many of your paid bills will be automatically updated in your budget, but some you'll have to enter manually.

Tips & Warnings

• See Resources, below, for free budget software at mint.com.