*Note: This was written by a Yahoo! contributor. Do you have a personal finance story that you’d like to share? Sign up with the Yahoo! Contributor Network to start publishing your own finance articles.
Technology seems to change daily as consumers continue to embrace various solutions that are provided by computers, smart devices, and the Internet. Personal finance and budgeting is an ongoing concern for many consumers, particularly in times of economic difficulty. Over the years, many individuals have used various brands of personal finance software to manage their household expenses and investments. Now, an increasing number of people are no longer using traditional software packages, as new and innovative tools hit the market. I am one of those individuals who is saying goodbye to the traditional personal finance software package.
Comfort with the Internet
When computers started to become more common, there was some concern that electronic devices could not be trusted and that it was wise to maintain a “hard” copy of financial records. Some of that concern remains today as individuals and companies continue to regularly back up their data using other hardware or Web services. In order to shift away from computer-based software, there must be a certain comfort level with having most or all data in an online environment. Granted, at some point consumers may not have much of a choice. Technology companies are shifting more and more of their products to the Web and leaving behind the standalone software package. I do take precautions to back up my data and I still receive some paper statements in the mail just in case there is a world-altering crisis that makes digital data disappear.
Websites
Most financial institutions now allow their users to track their accounts and complete transactions on company websites. This is a convenient way of doing business, but in some cases it does require people to maintain a variety of accounts, particularly if they have different investments in various locations. Personal finance software may be more of a standalone product, but consumers have to weigh whether they want all of their data in one place or if they are comfortable logging into various accounts on a regular basis. In addition, security is always a concern, and while websites do their best to maintain protection protocols, there is no guarantee that data will always be safe. Maintaining accounts on various websites can be a hassle, but I have found it to be a manageable process, particularly since many of my long-term investments do not require a great deal of ongoing maintenance.
Apps and other tools
This isn’t to say that software is no more, as it seems reasonable to suggest that there will always be software functions that must be maintained, even in a Web environment. Today, institutions are moving to smaller, more streamlined versions of software that can run on various computers. This mirrors the app movement that has made various smart devices so popular. Rather than purchasing a large software package that comes on a disk, consumers have the opportunity to download packages that are designed to easily run on various devices. For my own needs, I downloaded a simple checkbook app that tracks a few of the accounts that I use on a regular basis. The rest of my account balances are tracked on a simple spreadsheet.
Limits on power
The challenge with some of the mobile solutions is that they may not be as powerful as traditional software packages. The current trend is for simpler functions that fit into a more compact interface. Therefore, if individuals are used to running complex reports, building elaborate budgets, or tracking detailed investment data, they may be more comfortable with traditional software packages that have more computing power and broader functionality. The reality is that many financial institutions have built-in tools on their websites, which means that I can run various reports on my financial performance if I so choose.
Needs and lifestyle
Ultimately, the consumer must decide on their own comfort level before switching to a new system of tracking finances. Money matters are very personal to many people, and switching to a new and innovative form of management may be extremely unnerving if it causes stress and anxiety. Therefore, consumers can certainly find a lot of technological solutions that will allow them to leave their traditional finance software packages behind. However, only the consumer can decide if they are actually ready to make the switch to something that is new and unfamiliar. I may not stick with this approach forever, but it has simplified my finances and it has allowed me to remove one more piece of software from my standard computer configuration.
More from this contributor:
Article source: http://finance.yahoo.com/news/First-Person-Why-I-Am-No-ac-2094413265.html