Is budgeting software worth the cost? Three ways spending the money can help you save

Is how you currently budget taking too much time, or are you looking at creating a budget for the first time? If so, you may be concerned about whether or not it’s worth spending the money on budgeting software. Truth is, a budget can be made with spreadsheet software that you may already have such as Excel, or you can always use a free program like Google Sheets. But if you’re not familiar with spreadsheets, or you want to use something more powerful, budgeting software can be the way to go.

Let’s take a look at whether budgeting software is worth the cost and also explore 3 ways spending the money can help you save. Budgeting software can be a great tool to help you reach your financial goals - but the one important thing to remember is that it’s only worth the cost if it’s being used. In other words, if you spend money on the software and you never use it, it becomes money wasted. Before you buy, make sure that you’re really dedicated to using the software.

1. The good news, (and the first way budgeting software can help you save money), is that most companies offer a free trial. If a free trial is not offered, some companies offer a basic version of their software for free. PocketSmith offers a free version with a few different features. If you find that you need more options, you can always upgrade to a paid version at a later date. How does this help you save money? If you’re used to budgeting manually, or you’ve never budgeted before, you can easily start to see where your money is going and different ways you can save. The best part is you’re spending no money upfront, but you’re able to see how much money you’re saving by using the software before the option to purchase.

2. The second way budgeting software can help you save money is by saving you time. The saying goes “time is money!” If you’re spending a lot of time trying to manage your finances, that’s time that could be spent somewhere else (earning extra money at a side job, picking up more hours at work, etc). Many budgeting programs also have apps you can use on your smartphone so you can easily update and manage your budget on the go in real-time.

3. The third way budgeting software can help you save money is by showing you both your current financial situation, and your projected financial situation. Many software programs show projections, which tell you how much money you will have saved in “x” amount of months, years, etc. This means you can make money decisions well in advance. When you’re in control of your finances, it’s easier to save and it’s easier to get excited when you can see your future financial standing. On the contrary, it can also show you potential financial problems in the future and gives you the power to change your budget or your financial strategy to help prepare.

Looking for other money saving tips? Check out our blog on how to Create a quick savings plan in 3 easy steps!