Compucraft Computer Services
What is ShoeString®?
ShoeString® is a tool used for modeling and monitoring a personal financial
plan, otherwise known as a budget. The word 'budget' usually engenders a
feeling of constriction, which is why most shy away from the practice. If you
associate the word 'budget' instead with the word 'plan', it becomes clearer
that when you make a budget for yourself any 'restriction' is an effort to
establish control over your finances. When it comes to your money, isn't
control a good thing to have?
Why should I keep a budget?
You may not realize it, but you are already keeping a budget. Whenever you
spend time contemplating whether or not to make a purchase, or deciding
how much you are willing to spend for something, you are budgeting. You are
just doing so in a somewhat informal manner. Using ShoeString® allows you
to do it in a more formal manner, with more information, and therefore more
effectively. This helps you get more 'bang' out of each of your bucks.
There are many reasons why someone should develop and keep a formal
budget. However, there really is only one reason to keep one, and one
question that you have to ask yourself - “Why should I do this?”. If you have
no reason, no goal in mind, then keeping a budget becomes an exercise in
bookkeeping – one that you are unlikely to continue. There are many possible
benefits and reasons for why someone would keep a budget, but there is
really only one that matters - yours. Your reason can be as simple as just
wanting to have an understanding of where your money is going (surveys
show that many people don't know where much of their money goes).
Without having your reason, you may start keeping a budget, but you are
very likely to 'fall off the wagon'.
How long do I do this?
Keeping a budget is a lifestyle change, similar to developing a good habit. It is
possible that you have a goal in mind, that once reached, you may decide to
stop. However, once you become used to having a clear and detailed
perspective of your personal finances, and are using that perspective to make
better decisions, the odds are that you will continue.
What makes an effective budget?
An effective budget is one that you can live with. It should model your
financial life accurately, and include the goals you are trying to achieve.
However, it should be realistic. Continual scrimping, even for reaching an
important goal, becomes draining without the occasional splurge. A budget
should contain goals, but should also have room for fun.
How do I “Stay on the Wagon?”
Unless you are used to keeping a budget, establishing the habit of
maintaining one is more difficult than it first appears. Even though it might
only take a few minutes a day, making sure you take those few minutes
consistently isn't always easy. If you have missed a few days worth of
updates, especially if you have made cash transactions, it can be daunting to
try to remember what you purchased.
This is where ShoeString® enters the picture. You may not have kept track
of all your transactions, but for your credit or debit accounts, your bank has!
Many financial institutions provide for downloading your transactions in a
format know as Open Financial Exchange. The downloaded file will have an
OFX or QFX extension. This format can be read by ShoeString®, and
transactions entered into the program from these files. Even if you fall behind
with updates, your can always catch up.
For your cash transactions, you need to define a rule for yourself regarding
how to handle cash that you can't account for. Small amounts of cash, like a
small drip from a faucet, add up over time. To keep track of this, you might
try putting a transaction for the missing cash into an 'Other' account. Or, for
more personal accountability, charge it to an account targeted for 'fun'. This
would serve as a reinforcement for the need to account for your cash.
To keep track of your cash transactions, try recording a message on your
mobile phone, write a note to yourself, or hold on to your receipt.
ShoeString® is a tool used for modeling and monitoring a personal financial
plan, otherwise known as a budget. The word 'budget' usually engenders a
feeling of constriction, which is why most shy away from the practice. If you
associate the word 'budget' instead with the word 'plan', it becomes clearer
that when you make a budget for yourself any 'restriction' is an effort to
establish control over your finances. When it comes to your money, isn't
control a good thing to have?
Why should I keep a budget?
You may not realize it, but you are already keeping a budget. Whenever you
spend time contemplating whether or not to make a purchase, or deciding
how much you are willing to spend for something, you are budgeting. You are
just doing so in a somewhat informal manner. Using ShoeString® allows you
to do it in a more formal manner, with more information, and therefore more
effectively. This helps you get more 'bang' out of each of your bucks.
There are many reasons why someone should develop and keep a formal
budget. However, there really is only one reason to keep one, and one
question that you have to ask yourself - “Why should I do this?”. If you have
no reason, no goal in mind, then keeping a budget becomes an exercise in
bookkeeping – one that you are unlikely to continue. There are many possible
benefits and reasons for why someone would keep a budget, but there is
really only one that matters - yours. Your reason can be as simple as just
wanting to have an understanding of where your money is going (surveys
show that many people don't know where much of their money goes).
Without having your reason, you may start keeping a budget, but you are
very likely to 'fall off the wagon'.
How long do I do this?
Keeping a budget is a lifestyle change, similar to developing a good habit. It is
possible that you have a goal in mind, that once reached, you may decide to
stop. However, once you become used to having a clear and detailed
perspective of your personal finances, and are using that perspective to make
better decisions, the odds are that you will continue.
What makes an effective budget?
An effective budget is one that you can live with. It should model your
financial life accurately, and include the goals you are trying to achieve.
However, it should be realistic. Continual scrimping, even for reaching an
important goal, becomes draining without the occasional splurge. A budget
should contain goals, but should also have room for fun.
How do I “Stay on the Wagon?”
Unless you are used to keeping a budget, establishing the habit of
maintaining one is more difficult than it first appears. Even though it might
only take a few minutes a day, making sure you take those few minutes
consistently isn't always easy. If you have missed a few days worth of
updates, especially if you have made cash transactions, it can be daunting to
try to remember what you purchased.
This is where ShoeString® enters the picture. You may not have kept track
of all your transactions, but for your credit or debit accounts, your bank has!
Many financial institutions provide for downloading your transactions in a
format know as Open Financial Exchange. The downloaded file will have an
OFX or QFX extension. This format can be read by ShoeString®, and
transactions entered into the program from these files. Even if you fall behind
with updates, your can always catch up.
For your cash transactions, you need to define a rule for yourself regarding
how to handle cash that you can't account for. Small amounts of cash, like a
small drip from a faucet, add up over time. To keep track of this, you might
try putting a transaction for the missing cash into an 'Other' account. Or, for
more personal accountability, charge it to an account targeted for 'fun'. This
would serve as a reinforcement for the need to account for your cash.
To keep track of your cash transactions, try recording a message on your
mobile phone, write a note to yourself, or hold on to your receipt.
Interested?
Perhaps you have never tried to keep a budget before. Or, maybe you tried,
but gave up. Why not give ShoeString® a spin? You can download the trial
version by clicking the button below.
Perhaps you have never tried to keep a budget before. Or, maybe you tried,
but gave up. Why not give ShoeString® a spin? You can download the trial
version by clicking the button below.
If you do try ShoeString®, we would like to hear your thoughts about it,
especially if you didn't like it, so we can make improvements. Send comments to: support@ccsmv.com
especially if you didn't like it, so we can make improvements. Send comments to: support@ccsmv.com