People with a lot of money hire financial advisors to monitor their spending and point out the rights and wrongs in that spending. The money that is saved from correcting the wrongs is then invested into potentially profitable ventures to benefit the client.
However the percentage of people who are that rich is considerably low. Most people are like me, not rich enough to hire external help. We have to manage our own finances and catch our own mistakes. Doing this single-handedly can be quite a task; an extra bit of help can end up benefiting us a lot.
PocketSmith is a free web service and one of those “extra bits of help” which we can employ to manage our finances. It basically acts as a calendar which we can feed our expenses in and which can forecast our future cash positions.
Once we sign up for a free account, we can start feeding in our budget and begin creating expense events.
These expense events can be any financial event: our salary date, dates of bills to be paid, etc.
We can then specify which of these events will be recurrent; PocketSmith will use this information to generate to 6 or 12 month cash forecast.
The forecast is what helps us plan our budget for the upcoming year. We can make the necessary deductions to our financial events and know what needs to be done to stay within our budget.
Just like we balance our checkbook at the end of month, we can use PocketSmith to juxtapose our expenses with our income.
The expenses versus income figures can greatly help us in staying within the limits of our budget. More reliable figures can be gotten by uploading our electronic bank statements and such. The more we share with PocketSmith, the more realistic the resultant figures will be.
We can check the figures per-day-wise for the upcoming year and know if there even a single day on which our cash flow is going in the negative.
PocketSmith is a remarkably friendly tool for computer users that can help planning our budget effectively.