How to Handle Personal Accounts

A personal account is an account used by an individual for that person’s own necessities. These accounts are directly or indirectly related to individuals, companies, organizations, or firms. Few examples of personal accounts are vendors, customers, salary accounts of employees, etc. 

The personal account rule is debiting the receiver and credit the giver. 

Maintaining a personal account is the hardest thing for a person to do. But each person should do this instead of wondering where the money went. Here are a few tips to help you maintain a personal account. 

• Determine your income.
• Find out all your outgoing expenses, including bills and spending money.
• Categorize the expenses like expenses for food, travel, household expenses, utilities, healthcare, fuel, etc based on your individual pattern of expenses to keep complete track of outward payments.
• Compare the income and expenses you do in a month and act accordingly.

Maintaining a personal account that involves neatly maintained records of income and expenses helps you to plan your budget.

• It shows what are the different expense types or categories where you are spending on a monthly basis and what is the percentage of that category when compared with your total outgo.
• A cursory look at transactions recorded over 6 months gives you a fair idea of our spending pattern and gives insight into where you can cut down expenses.
• It helps you to plan for the future months.
• Draw a rough personal/family budget to maintain a strict discipline.
• It helps you to cut down on unnecessary things and increase your savings.
• It helps you to even have a look at your credit card spending patterns and how much payment is being made on a monthly basis for the credit card bills.

In today’s world, there is a host of specially designed apps both on android and iOS mobiles to help you maintain and track your personal accounts. These apps help to track expenditure, savings, and investments. It also offers several features such as shared wallet, bill reminders, auto bill payment, and even manages subscriptions. These apps can have their own QR code, for example, BHIM UPI has BHIM UPI QR code, etc. and it is 100% safe. Below is the list of a few of them.

• Mint: It is one of the most familiar personal finance apps that provide a total finance picture in one place. It pulls all the transactions from the account, categorizes them, and shows how we are spending the money.
• Personal Capital: It is a personal finance and wealth management app that helps you to manage your investments besides daily spending accounts.
• Mobills: It arranges your expenses in categories and helps to analyze your financial life by using interactive charts. You can also add your bills and due dates to keep track of them.
• BHIM UPI: An Indian mobile payment app that helps to perform e-payments directly through banks and facilitates cashless transactions by scanning the BHIM UPI QR codes. It keeps track of all the transactions and helps you to calculate your expenditures. 

Overall, planning your personal accounts by obeying the personal account rule helps to manage your money and gives direction to your dreams or goals. Hence, having sufficient knowledge about handling personal accounts can help you plan your budget properly. It also assures a bright financial future.