Computerize your Finances

Many of us find ourselves digging through mounds of paperwork and cleaning out drawers to sort out details for our Taxes. Computerizing your finances can make the job easier, especially if you follow these steps:

1. Select a software package that is right for you. Microsoft Money® and Quicken® are the two leading software programs for personal finances. Both are easy to use and allow for powerful management of our finances. Along with keeping track of our checking accounts and monthly expenses, both allow for budgeting and investment tracking.
2. Educate yourself. Learn how to use your software before entering your own data. It is much easier to play with sample data rather than "learning as you go". Both Money® and Quicken® include excellent tutorial and help, but we still have to choose to use them.
3. Gather all your paperwork and receipts. There is nothing more frustrating to the initial setup than stopping every few minutes to gather information. Gather it all first and sort through it so you can sit down and enter it all at once.
4. Tackle one task at time. Don't try to enter your checks, go online and track your investments all at once. Start simple, with one task. When you have mastered your selection, start a new task - this will allow both your patience level and learning curve to increase.

Keep online banking in mind too. This provides for electronic payment of bills, transfer of funds and instant access to our banking statements. You can track your balances on a daily balance and reconcile accounts with ease. The convenience comes with a price though, make sure you have tracked any transaction fees and are aware of any costs and remember it is not going to be simple the first time you use it. Be cautious too, most banks now offer secured lines to protect your data, but it doesn't hurt to ask your banking officer for details regarding safety and common sense features while transferring data online. Most importantly, never send confidential information such as credit card numbers through e-mail.

The use of financial software can be a great asset in tracking our monthly expenses and saving for the future. It is a powerful tool for preparing for tax time and analyzing your finances. Be prepared to commit time and effort into your progress. Don't expect your computer to complete everything for you. You will still need to sit down every month and ensure your finances are in order.