It’s no secret that managing personal finances can be a headache, especially if you’re new to it. Learning how to effectively control your spending and save for important milestones can feel daunting, to say the least. Luckily for us, that’s where handy technology comes in.
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“When it comes to simplifying your finances, financial planning software can be a game changer,” says Dennis Shirshikov, head of growth at GoSummer and professor of finance at the City University of New York.
Below, experts discuss how financial planning software can help you better manage your finances, migraine-free.
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Software streamlines money management
“The best money management software, like Quicken, YNAB (You Need A Budget), or Personal Capital, offer a variety of tools that can streamline the often daunting task of managing your money,” Shirshikov says.
These platforms allow users to centralize their financial data, providing a comprehensive overview of their financial health.
“Quicken’s budgeting tools, for example, not only help you track expenses but also predict future spending, which can be invaluable for long-term planning,” he explained. “YNAB, on the other hand, takes a more proactive approach by encouraging users to allocate every dollar to a specific purpose, which promotes a disciplined approach to budgeting that can be especially beneficial for those trying to get out of debt.”
Dayten Rynsburger, CRO at Niche Capital CO, noted the same thing. “Managing personal finances has become easier with the introduction of financial planning software.”
He said a budgeting app like Mint, which is integrated into Credit Karma, can help you understand your spending patterns over time. That means you don’t have to budget ahead of time. YNAB, on the other hand, ensures that every dollar spent goes toward a specific goal, which could potentially change your spending patterns.
“The best thing about Personal Capital is that it addresses investment tracking and retirement planning, which are important aspects of both spending and wealth accumulation,” he added.
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It aligns your spending with financial goals in real time
According to Justin Godur, financial advisor and founder of Capital Max, YNAB is one of the best tools out there. “What sets YNAB apart is its ability to align your spending with your financial goals in real time.”
He often recommends YNAB because it not only tracks your spending, but also helps you plan every dollar.
By encouraging a proactive approach to budgeting, he said, it eliminates the anxiety of living paycheck to paycheck. “I’ve found that when people start using YNAB, they feel more in control and confident about their finances.”
It simplifies complex financial portfolios
According to Godur, Quicken is another powerful software, especially for those with more complex financial portfolios.
“The power of Quicken is that it gives you a comprehensive view of all your accounts — banking, investing, retirement — so you can manage everything in one place,” he explained. “It’s like having a personal financial command center at your fingertips.”
This consolidation not only saves time, but also reduces the chance of financial mismanagement due to scattered information.
It automates tedious tasks for you
According to experts, what makes these tools special is that they can automate many of the time-consuming tasks involved in financial management.
“For example, Personal Capital aggregates your financial accounts and provides real-time updates on your assets, investment results and retirement readiness,” Shirshikov said.
He said this level of automation not only saves time, but also reduces the chance of human error, which is a common problem with manual money management. Additionally, many of these platforms offer features like goal tracking, which can help users stay focused on long-term financial goals, “whether that’s saving for a house, building an emergency fund or planning for retirement.”
Godur agreed that automation is the best way to simplify money management. “Both YNAB and Quicken offer automated features that track your spending, categorize transactions, and even predict future spending.”
This means less manual input and more time to focus on what matters: planning for your future. By integrating these tools into your financial routine, you can move from reactive to proactive management.
The heart of the matter
“Trust me, the peace of mind that comes with knowing that you’re in control of your finances is priceless,” Godur added. “And with the right software, it’s easier than ever to achieve that.”
Rynsburger noted the same thing, noting that money management software simplifies everything by bringing all of your financial information under the same umbrella. “By connecting different accounts and providing ways of what to do next, they’ve saved a lot of time that used to give a lot of people sleepless nights.”
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This article originally appeared on GOBankingRates.com: 4 Ways Financial Planning Software Simplifies Your Finances, According to Experts
