Financial Planning Tools

Planning your finances can be very challenging, not to mention confusing. Fortunately, the use of a financial planning tool can make the job a lot easier. Another good thing is you can find the financial planning tool that you need for free online. Below are some examples of these useful tools:

One of the basic tools for financial planning is a Family Monthly Budget Worksheet, which is designed to help in cash flow budgeting. The format of this template contains different categories under monthly cash inflows and outflows. Using this financial planning tool, you will record your monthly income as well as itemized expenses such as utility bills, credit card payments, home repairs, auto expense and etcetera. The worksheet will automatically calculate your total income, total expense and total extra cash every month.    

The advantage of using such electronic worksheets is that it is easy to use and update rather than a worksheet on paper. If you like keeping printed records, you can simply print out the document. Additionally, electronic budget worksheets save you time in making calculations because it does the math automatically for you. This is helpful if you want to make quick projections. You can also find worksheets to help you calculate taxable social security benefits, the amount of mortgage payment that you can afford, pension payments and many others.

A financial calculator is another very helpful financial planning tool. There are financial calculators for different purposes such as mortgage payments, loans, investments, credit card management, retirement planning, savings, tax, personal finance, and business. 

Using a financial calculator, you can do more than compute payments. You can also compare loans and mortgages, for instance, or calculate interest savings. Investment calculators, in particular, can compute your mutual fund expenses or your investment returns. There are also financial calculators that can assess if you will qualify for a mortgage or any other loan. You can also look for home budget calculators or, if you are a student, a student budget calculator.

Using this financial planning tool can help you analyze the state of your finances whether for the purpose of budgeting, saving money, growing your money, taking out a loan or managing debt.

Electronic forms such as IRS forms or individual tax return forms are also available online for download and they are indeed very helpful when tax season comes. Another common financial planning tool is financial planning software, which can be for professional or personal use to help keep track of and manage assets, income, expenses, social security benefits, taxes and etcetera. While this financial planning tool is not free, you can find many affordable products online. Use a trial version first before purchasing the software.

James Mahony is the founder of The Credit Source - A site dedicated to Credit Information

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