Financial Tips

Consumer Credit : Your Computer as a Money Management Tool

Your Computer - A Money Management Tool

Over the past decade, personal computers have become extremely commonplace. You can't find a business office or workplace of any kind, these days, that doesn't have a computer in use somewhere. And as for home use, before much longer, a computer will be as common as televisions, telephones, VCRs and microwave ovens. Personal computers are on the verge of becoming the most important tool for communication you can have, other than your mouth!

So as new technology and new software is developed on an ongoing basis, we find that the computer is becoming more and more effective as a tool for managing your personal finances. And I'm not talking about investments, although the emergence of the Internet has led to a boom in the number of small investors doing business directly with Wall St.

I'm referring to the basic money management needs found in every home in the United States - responsibilities like balancing a checkbook, being a good consumer and paying the bills on time. So if you have a computer at home, or are in a work situation where your employer lets you use your work computer for personal use, there's no reason not to take advantage of what this tool can do.

One of the best things a computer can do for you is help you comparison shop for the best prices on purchases. There are now a lot of products, ranging from small items like books and CDs to more expensive things like cars or home mortgages, that you can shop for online. Just log onto one of the search engines, like Yahoo or Google, and type in what you're looking for. You'll end up with a list of websites that should help you find some prices.

It's important that you check out as many different sources as possible, and compare the prices you find to what you can get at the store down the street. And don't forget to add shipping costs, which can completely wipe out any savings you may find. Finally, if you shop online, don't get caught up in all the e-commerce hype. This isn't something you're doing for fun; you're shopping online to save money.

You can also use your computer as a money management tool by using money management software. Programs such as Quicken and Microsoft Money allow you to keep your check register on your computer and automatically do the math for you, including the unpleasant task of reconciling the monthly statement. These programs also allow you to enter the dates of all your monthly bills and will remind you when they are due. They also have a lot of tools for budgeting, taxes, loan tracking and investment tracking.

Another great software tool is a spreadsheet, such as Microsoft Excel. A spreadsheet allows you to organize and sort information, both mathematical data and other forms of information, like names and addresses. The advantage of a spreadsheet is that you can also set up formulas that automatically update themselves every time you enter new information. So it's a great way to keep track of monthly bills and outstanding balances on loans and credit cards.

Finally, if you have a computer and are connected online, you should use e-mail as much as possible to communicate information, instead of relying on long-distance telephone calls. After all, by paying for your Internet service, you also can send and receive unlimited e-mail messages to and from anywhere in the world at no extra charge, so why not use it?