Using today’s technology to make it easier to get ahead.
PFM platforms are the biggest news in the world of budgeting since computer spreadsheets. And just like spreadsheets made budgeting easier over using a pen and paper to do the calculations yourself, a PFM takes even more hassle out of the budgeting process.
PFM stands for Personal Financial Management
So a PFM combines two important building blocks into one platform.
- Personal finance is your overall picture – from your earnings to your investments, and even including your long-term financial goals.
- Money management is the day to day stuff – what you budget, how much you spend, and where your money goes
So how is a PFM better?
With personal financial management, you see everything at once. So you can handle the everyday needs and make real plans for the future at the same time. With all of your accounts in one place, it makes it incredibly easy to make the high level decisions your outlook needs while looking at the real facts of what’s happening with your money.
In the past, your budget was usually separate from individual account statements and earnings reports for things like your 401(k) and investments. The PFM brings it all together in one picture. You you login to one place or click on one app to see everything.
Fact: Some personal financial management platforms add additional tools, such as customized deals and offers, or rewards programs.
Are PFMs safe?
That idea of having your entire outlook in one place can make some people nervous. What if it gets hacked or some employee steals my info?
But the best PFM platforms use the exact same security technology and protocols that are used by banks. Technical stuff like SSL encryptions and triple layers of password protection. They also usually load info from your accounts on secured servers, but that info gets bumped daily so your stuff isn’t stored anywhere to be accessed by someone else.
So if you’re comfortable using online banking, you can feel just as comfortable using an accredited PFM.
Article last modified on October 19, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: What is a PFM? - AMP.