Household Budget Tracking with Software, Checkbook Registers & Paper Notebooks

Looking for a new way to keep track of your household budget? There are three methods that can help you keep track of your household budget, all very easy to use. The three methods include the use of computer software, using your checkbook register, or writing it all down in a notebook. Which budget tracking method you choose is up to you. Here is a quick overview of these three methods of tracking your household budget.

Budget Tracking Computer Software Benefits and Disadvantages

The Benefits: The benefits of using computer software to keep track of your household budget are many. Computer budget tracking software programs allow for you to subtract your expenses using your computer. This means that you can keep track of your household budget without adding clutter to your home office space. Computer budget tracking software programs also prevent you from making mathematical errors when tracking your household spending. You can also input your monthly bills to be subtracted automatically month after month, preventing you from forgetting to subtract money from your household budget for a particular bill. You can also set aside money in your checking or saving account for a specific purpose and have the same amount subtracted from your monthly budget totals, month after month.

The Disadvantages: The disadvantages of using computer budget tracking software are few. The biggest disadvantage is the upfront cost of the computer budget tracking software program. A copy of Quicken 2008 for example is offered for sale on the Quicken web site starts at $59.99 for the deluxe edition. However you only need to buy the software once and so the upfront cost of computer budget tracking software is easily recovered through use. Another disadvantage of using computer budget tracking software is that it is done on the computer. This means that if your computer suddenly crashes you lose all of the data you have input into the computer budget software. Because of this, it is important to create back up copies of your budget on a regular basis.

Checkbook Register Budget Tracking Benefits and Disadvantages

The Benefits: One of the biggest benefits of keeping track of your budget using your checkbook register is that you can easily transport your budget, keeping it with you at all times. Why is this beneficial to you and your budget? It allows you to keep your budget with you where you can easily consult it before making a purchasing decision, saving you from making costly impulse purchases which can ruin your budget. Another benefit of checkbook register budget tracking is that you have a paper copy of your budget which doesn't take up that much space in storage. Checkbook registers also allow you to record the date of a transaction, along with a short description, and check number if applicable. You can also immediately subtract money for bills you pay for with your checks.

The Disadvantages: One disadvantage of checkbook register budget tracking is that you have to visit your bank to obtain more checkbook registers once you run out. You may even have to pay for them each time you need a refill. Because you are keeping track of your budget by hand there is room for mathematical error. You may also forget to subtract money from your budget for a particular bill you didn't pay for with a check.

Paper Notebook Budget Tracking Benefits and Disadvantages

The Benefits: Keeping track of your budget using a paper notebook has its advantages over using a checkbook register. Using a paper notebook to keep track of your budget allows for more room to write down descriptions of your bills and expenses each month. The size and shape of traditional notebooks make them easier to file for storage purposes. Paper notebooks are also generally inexpensive and can easily be purchased at many locations. You can keep a list of your bills at the front of your notebook to keep you from forgetting to subtract them from your budget.

The Disadvantages: The disadvantages of using a paper notebook to keep track of your budget are similar to the disadvantages of checkbook register budget tracking. There is room for mathematical error and you will need to purchase refills once your budget notebook is filled.

If none of these above ideas for budget tracking appeal to you, you may also want to consider using an online budget tracking website. One such web site is called MVelopes and allows you to keep track of your budget online. The best part of budgeting online is that you won't have to worry about losing your data in a computer crash. The biggest disadvantage is that you will have to pay a membership fee in order to use their services. To find out more about this form of budget tracking click here.