NextGen

Financial Coach Advocates the Analog Method of Personal Budgeting

iStock-187247079 America Budget Debt Money Piggy Bank

Financial technology is all well and good but, when it comes to making and maintaining a budget, pen and paper is still the way to go, one financial coach advises.

“I show people how to save, budget and build wealth by organizing their life, and my main tool is paper planning,” Alaina Fingal, founder of The Organized Money, told CNBC.com.

While Fingal does not eschew automated tools such as automatic bill payments, credit card points and online dashboards, she believes that the act of writing things down allows her clients to retain more of their financial information and priorities.

“When [people are] able to write down their numbers and see it in real time—actually budget on paper—it resonates with them a little bit more,” she said. “And they’re actually able to stick with their budget.”

Once people have an overview of their monthly spending, she advised them to start carrying a small notebook.

“When it comes to the day-to-day, most people don’t walk around looking at their spreadsheets. That’s when I tell them to switch to a manual system,” she said. “Just take little notes about what’s happening throughout the day so you have something to look at, at the end of the day, to compare to your budget.”

The act of writing out expenses can help people consider—or reconsider—those unnecessary impulse or convenience purchases.

“Just writing it down makes us stop and say, ‘Oh, wait. I’m getting close to my budget number. Do I really need this Uber right now?’” she said.