It’s no secret that managing personal finances can be a headache — especially when you’re new to it all. Learning how to effectively control your spending and save for important milestones can feel intimidating, to say the least. Luckily for us, that’s where handy tech comes in.
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“When it comes to simplifying your finances, financial planning software can be a game-changer,” said Dennis Shirshikov, head of growth at GoSummer and professor of finance at City University of New York.
Below, experts explore how financial planning software can help you better manage your finances — without the migraine.
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Software Streamlines Money-Management
“The best money management software, such as 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,” said Shirshikov.
These platforms allow users to centralize their financial data, providing a comprehensive overview of their financial health.
“For example, Quicken’s budgeting tools not only help 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, fostering 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. “Managing personal finances has been made easier with the introduction of financial planning software.”
He said a budgeting app like Mint — which has been integrated into Credit Karma — can help you understand your spending patterns over time, meaning there is no need for budgeting ahead of time, whereas YNAB makes sure that every dollar given out goes to a specific purpose that could potentially change your spending habits.
“The best part about Personal Capital is that it deals with investment tracking and retirement planning, which are key aspects of both expenditure and wealth creation,” he added.
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It Aligns Your Spending With Financial Goals in Real Time
According to Justin Godur, finance advisor and founder of Capital Max, one of the best tools out there is YNAB. “What sets YNAB apart is its ability to align your spending with your financial goals in real time.”
He often recommends YNAB, because it doesn’t just track expenses — it helps you plan for every dollar.
By fostering 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
Quicken is another powerful software, according to Godur, particularly for those with more complex financial portfolios.
“Quicken’s strength lies in its comprehensive overview of all your accounts — bank, investment, retirement — allowing you to manage everything in one place,” he explained. “It’s like having a personal finance command center at your fingertips.”
This consolidation not only saves time but also reduces the chances of financial mismanagement due to scattered information.
It Automates Tedious Tasks for You
What sets these tools apart, according to experts, is their ability to automate many of the tedious tasks involved in financial management.
“Personal Capital, for instance, aggregates your financial accounts and provides real-time updates on your net worth, investment performance and retirement readiness,” said Shirshikov.
He said this level of automation not only saves time but also reduces the likelihood of human error, which is a common issue in manual money management. Additionally, many of these platforms offer features like goal tracking, which can help users stay focused on long-term financial objectives, “whether that’s saving for a home, 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 forecast future expenses.”
This means less manual entry and more time focusing on what matters: planning for your future. By integrating these tools into your financial routine, you can move from reactive to proactive management.
The Bottom Line
“Trust me, the peace of mind that comes from knowing you’re on top of your finances is invaluable,” Godur added. “And with the right software, it’s easier than ever to achieve.”
Rynsburger observed the same, noting that money management software simplifies everything by bringing all your financial information together under the same umbrella. “By linking different accounts together and offering ways on what to do next, they have saved a lot of time, which previously used to cause many 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
