Personal Finance Latest news and expert tips on how to make money and save money.

It’s a good idea to be organised when handling your personal finances – home budgeting and personal budgeting are very important if you wish to avoid debt. Unfortunately, we don’t all have a lot of spare time to sort out our finances and I think the answer could be to purchase some personal finance software.

Which Personal Finance Software?

There is a huge range of personal finance software to choose from. These software packages range from simple programs where you record income and expenditure to the more sophisticated which allow you to import bank statements, look after your investments, set up budgets ( both for household and personal) and schedule payments.

Even if your needs are very straightforward at the moment, it is probably better to buy software with the additional features as they will probably be very useful in the future. Some of the best packages will actually collate all your information and give you the basis for your self assessment return – cuts out all the panic as the deadline for your assessment approaches.

Before making your choice, look at several different packages and read the reviews or check out some consumer advice sites. Personal finance software is fairly cheap and suppliers can give you support and answer your questions.

Sorting Out Your Personal Finances:

Once you’ve installed your new software it’s time to get on top of your personal finances. Start off by setting your household budget – be realistic, it’s no good conveniently forgetting some essential expense. The budget is a tool to help you plan your finances, present and future.

Don’t forget to include quarterly and annual bills – these should be spread over three and twelve months respectively. Allocate a contingency for unexpected emergencies – this can be put in a savings account along with the annual bill funds until required. Next set a personal budget – getting money from the cash machine in dribs and drabs makes it very easy to lose track of what you are spending.

List your personal expenses and add an amount for sundries – after all you can’t plan for everything. I think the best way to stick to your personal budget is to draw the weekly total out in cash and when it’s gone its gone – wait till next week! Now it’s time to import the statements from your online bank and organise and manage your money. Enter all your actual expenses and income and compare with your budget – you will see at a glance if you are going off track.

You can calculate loan repayments and enter future bills – using the personal finance software, you are in control, no more charges for going overdrawn by mistake – you move money in good time when it’s needed. Once you have set everything up correctly, it will take you only ten minutes or so every couple of days to keep your finances in order.

There are many credit cards out there. They all offer different incentives to entice you to apply. So how do you wade through the masses of information available, and weigh up the different choices that are on the market. This Review aims to give you some pointers as to what to look for to choose the right credit card for you.

When you select your card, you should look at the introductory rates, balance transfer rates, and other offers that may apply to new cards and new holders. Some will offer you truly amazing deals, especially if you have good credit. But remember the emphasis is on making sure it is the right deal for you.

The first thing you’ll need to decide when choosing your card, is the reason why you want one in the first place.

Some people choose to get a card for cash flow purposes. Using your card for your day to day living expenses allows you to leave your salary in your bank account to draw interest. This way, your money will continue to grow while you continue to buy the things you need. Then at the end of the month, simply pay your bill. Does this sound like you, or how you would want to use your new credit card?

Or you may want it for instant cash purposes. This way, you can use the credit card at an ATM and get instant cash, which is great for travel or going on a long and extended vacation. If this is what you primarily want the card for, you should look for one that has the lowest rate possible for instant cash transactions.

Are you likely to pay the balance in full each month, or only the minimum amount, or somewhere between? If you intend to pay the full amount then the interest rate on offer for outstanding balances should not be the key incentive to choose an offer. If you are likely to leave an outstanding balance each month then the interest rate is a key factor in your choice.

If so the key area you’ll need to look at is the APR (Annual Percentage Rate). The APR is what you will pay on what you purchase when the free period runs out. This is usually on outstanding balances and items designated as cash withdrawals (but can vary so check the terms on offer). APR rates will vary among credit cards, so it is always in your best interest to compare and shop around. If you plan on not paying the balance off monthly then the lower the APR rate you get, the better off you’ll be. If you do plan on paying off the balance each month then the APR is not your key incentive.

Another important area to look at when choosing your credit card is the incentives. There are numerous types of incentives on offer, such as reward points,cash back with purchases, add on deals on travel insurance or breakdown cover, 0% interest offers, balance transfer deals, the list seems endless. But don’t just go for the most eye-catching. Pick the deal with the incentives that best suit your needs.

Another concern with choosing your credit card is the minimum payment amount. Most start around 3% of the outstanding balance, although again this can vary. In addition check the interest free period. How many days grace do you effectively get before each purchase starts to attract interest?

When you make that final decision and choose your credit card, you should always make sure that you know exactly what you are getting. If you put some time and research into choosing your credit card, you’ll find the best one for you.