Pelham Bell Pottinger

Money management tools

You can manage your money in different ways. The best way to pick the best money management tool is to choose a system that you are more than willing to utilize. Should your money management tool be difficult to understand or is inconvenient or time consuming, chances are high that you will not stick to it. Managing personal expenses is akin to dieting in the sense that you want to make the process as painless as possible for yourself.

Effective tools for money management

The pen and paper budget happens to be the most basic of all money management tools. Using these, it will be possible for you to create a list of monthly bills to be deducted from your monthly income. There are templates printable from the Internet that are meant to help you get started.

Those who follow the advice of personal finance guru Dave Ramsey recommend cash based envelope system meant for effective money management. Those who are accustomed to making use of debit cards for most of their spending habits find an envelope system that takes a bit of getting used to.

Visual demonstration about how you tend to spend your money proves handy particularly for those who are shopaholics. If you plan to use envelopes as a money management tool, you are well advised to have individual envelopes for categories that include clothing, food, health care expenses, gas, and not to mention, family entertainment.


If you are the type who prefers a high-tech solution for keeping track of money, you are well advised to try making use of personal finance software for money management. You can use Microsoft Money and Quicken. A bit of learning curve is an integral part of programs like these. They have advanced features that will surely make your efforts worthwhile if you are also attempting to track your investment plan for achievement of long-term financial goals or to keep track of records as part of your home-based business.

In case you are someone always on the move and are in need of a convenient way to track your spending behavior, you can utilize numerous money management tools that are available in your iPhone or Blackberry.

You will surely be sufficiently familiarized about what a money management tool is by now. You will surely have no doubt that their relevance in controlling your spending cannot be ignored. Use the ones in your phone to manage your money effectively.