The skill to manage personal finances is something everyone should learn. Being knowledgeable in handling money is not just a privilege but something every person should know, considering how inevitable it is to deal with financial decisions in everyday life. Fortunately, you can get a useful finance calculator software easily. This software makes it easy to plan, calculate, and manage costs without the need for any formal training on financial management.
Personal Finance Overview
There are six main areas of focus in personal finance. These are financial position, adequate protection, investment and accumulation goals, retirement planning, and estate planning. These are the topics most personal finance software are centered on. They can be described as follows:
Why Use a Financial Calculator
As mentioned, almost every area of focus in personal finance involves numbers. Things need to be quantified in order to come up with more sensible financial decisions. Without looking at numbers, it’s almost impossible to properly pinpoint the right decisions like choosing which insurance policy offers the better deal or which loan should obtained (the one with the lower interest and charges). You can do “guesstimates” as you look for insurance plans or personal loans but it is always better to have some degree of near-accuracy in terms of numbers. In tracking household cash flow, for instance, you can’t just look at what you have and what you have been spending away by ending balances. You need to monitor how the cash flows in and how it flows out.
A good finance calculator is one that covers as many of the personal finance areas of focus described above. However, you can hardly find one software suite that covers all aspects of personal finance comprehensively. Most of the time, it is more convenient to use different financial calculator tools to deal with different matters. Fortunately, there are several of these sets of tools readily available online.
The following are some good examples. They are offered by some of the most reliable names in the field of personal finance.
Investopedia’s Calculators are great tools for computing various personal finance and investment related figures, including present and future values, annual effective interest rates, periods to grow sums of money, tax brackets, and mortgage payments. The Online Financial Calculators of TCalc includes various personal finance calculators that include tools for computing college savings, debt consolidation, loan affordability, and credit card payoff. Additionally, there’s also Bloomberg’s Personal Finance Calculators that make it easy to compute mortgage numbers, plan your retirement, and come up with estimates on potential savings.
If you’re good with numbers, you may not really need a calculator software of sorts to plan and track your finances. However, for most, a calculating tool provides significant help as it provides guidance and simplifies the whole process of evaluating decisions when it comes to personal finance.