27 Jul 2020 | 5 min read
A financial plan helps you to determine your short term and long- term goals. Those with a financial plan are more likely to feel “very confident” about managing money, savings, and investments. It enables you to construct a roadmap that includes budgeting your expenses, investing in right assets, and setting smart goals in building your contingency fund for unforeseen events.
If you do not know how much you make and how much you spend, it will lead to financial setbacks. You are sure to get doomed financially, seeing yourself most of the time on the side of paying off debts.
The whole idea of a budget is to create smarter spending habits. A solid strategy with clear achievable steps is the smartest way to put the best financial practices in place.
Once you have made up your mind to cross the bridge, you may want to look for financial management tools at your disposal. Most available tools are user friendly and let you track your money spent, create a budget, and help you analyze your decisions.
Here we are listing down the most recommended free tools to let you manage your hard-earned money.
MyMoneyCircles.com – This site offers you free assistance on managing your money. The financial experts who are associated with the site will be by your side with personal guidance services being offered. A free boot camp is also organized for users to participate and complete online “success guides” to know about how to save, manage credit cards, and debt, protecting your assets and a lot more.
Moneyrates.com – This website will help you in maximizing the interest you earn on your savings and investments while slashing the interest you pay on your debt. You will be able to compare interest rates on savings accounts, mortgages, credit cards, etc. You’ll be handheld to sort through your choices with the required tools and information.
Credit.com – Maintaining a healthy credit report is quite essential to every individual. If you want to understand what factors influence your score and possible ways to improve them, then this site has all that you need.
Mint.com – You can’t miss this site when you are on the quest to manage your personal finances. Personal finances or suggestions for items you can save on common expenses, and how about knowing credit card rates. This site will help you establish your saving goals and also offers free apps for you to track your spending from your Smartphones.
BudgetPulse.com- If you want to track your spending and savings with an easy to follow a budget, then “budgetpulse” has got it for you. Additionally, it tracks finances in different currencies, which is very useful for people residing in foreign countries and also for travellers.
Yoodlee.com – This is a platform with multiple services to cater to your financial accounting and investment needs, creating a budget, track real estate value, track spending, and transfer funds. And yes paying bills too using the site.
SmartyPig.com- In early childhood days, a piggy bank was meant for us to inculcate saving habits. This site primarily does the same. Set up your savings goal and keep track of its progress. It lets you redeem your savings for gift cards and discounts.
There are a number of other tools and products for you to take advantage of.
Savings Calculator- This tool allows you to plan your savings either monthly or annually. The calculation is being done based on your existing savings, tenure for which you are planning and the gross annual interest you receive on your savings.
Budget Calculator - Don’t make it guesswork when you are keen on planning a budget for your family. A budget calculator will help take control of your money and track all of them. It will give you a clear view of your monthly finances and help you find places to change your budget and make the most of your income.
There are various elements that make up a budget. You’ll have to follow strict self-discipline when planning to go ahead with your budget planning. Record all your monthly expenses and categorize them into avoidable and unavoidable expenses.
Expense Calculator- The money you spend every month on your essentials is the outflow of income you receive. The expense calculator makes this process easier by allowing you to organize your household expenses into categories and express them as a percentage of the monthly total.
Financial Self Discipline is a must when tracking income and expenses. Get creative with the budget by cutting down expenses. Learn how to maximize the value users get from their actual expense.
A budget calculator is a powerful tool that will alert you if you’re overspending. This will highlight the areas where cutdown is required. without any need to have everything figured out from the beginning.
Insurance Policy Calculator – The insurance policy calculator is to support basic financial requirements for your family in the event of the death of earning members of the family. Just like your other financial needs and requirements, life insurance is important too.
The insurance calculator takes your age, life stage, marital status into account, and help you with estimations that you would need to help your family in meeting financial goals. It helps you to maintain and keep track of all your insurance policies, add policy details, date of issue, date of maturity etc.
Loan Comparison Calculator – When planning to avail loan it is important to know the rates and relevant costs associated with it. Not necessarily it will include just the monthly principal but also interest rate, processing fee etc. A loan comparison calculator helps put these factors into perspective, to give a picture of what it would look like. The loan comparison calculator helps put the factors of monthly fees, interest rate, monthly principal all together in a place so that you can choose the loan that’s right for you.
Loan EMI calculator - A Personal loan EMI calculator is one of the most important and used financial planning tools. When you apply for a loan, it helps you to calculate how much your EMI would be, so that you can decide the loan tenure based on your monthly budget. An EMI calculator is easy to use and displays accurate results.
Some loan comparison calculators will calculate the monthly payment and interest costs for up to four loans, all on one screen analyzing the differences in the loan term and interest rate and helps you choose the best one. This can really have a huge impact on your monthly payments and the amount you pay. To calculate the payment amount, you’ll have to simply key in the principal amount borrowed, the interest rate of the loan, processing fees, number of payments, and repayment terms in years.
If you want to harness the benefits of good financial behaviour, consider paying off debt fast, saving money, and progress towards your financial goals. You’ll see how investing in your financial future will turn into auto pedalling for you. Keeping the right balance between savings and investments by allocating an optimum amount of funds towards the protection of individual and family, will ensure a good return
Well, now you have all the tools for you to benefit from and create a bright future for yourself and your family.