Wednesday, February 16, 2011

How to organise your finances for free

As we are now moving into yet another festive season, it would be quite beneficial to keep on top of our finances. If you are as inapt as I am in terms of organising your monthly budget, then you would find a personal financial management software very useful. There are many packages out there which are either too complicated or too expensive for an average person (unless you have a degree in accounting ;D ). Although we can use excel for this purpose, you will end up with mistakes unless you are very careful with the formulae.   

Here is one possible solution:

Finance Explorer Portable is an Open Source portable application. This means you can use it for free and can carry it around in your USB pen-drive to be used on any PC you might be working on (home or office). Just plugin your pen-drive and use the application. This will allow you to maintain your records on the pen-drive whereas other applications would only work on the PC it was installed in.

Here's how to do it:

1. Download the application from http://portableapps.com/apps/office/finance_explorer_portable 
2. Save application onto your USB pen-drive
3. Run the application from your pen-drive using FinanceExplorerPortable_5.0.3_English.paf.exe
4. Provide your pen-drive as the installation directory
5. Open FinanceExplorerPortable folder in your pen drive
6. Double click on FinanceExplorerPortable.exe to run the application

How to setup your finances:

There will be some sample data in the application on first startup. To delete these, go into each section (e.g. bank, loan etc.), click on the row and use Edit -> Delete row from the top menu.

Click on the Home folder in the left hand side pane.

Using the Task window
1. Setup your bank accounts, credit cards etc.
2. Add monthly budget for a month of the year (you can use a "Group" name to indicate similar budgets. e.g. bills, income etc. This will make it easier when you input the transactions to your bank accounts)

Note: Things you pay out should be input with a negative sign (e.g. Bills  -100.00. I didn't know this at first...)

There are online tutorials available which you can access from the application. If all is well your Total Net Worth will be high.

Have fun.



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