Personal Finance Management (PFM): What It Is, How It’s Used

Personal Finance Management (PFM): What It Is, How It's Used

Without a basic understanding of personal finance management, you may be exposed to costly financial missteps early in life. Recognising that each financial situation is unique, there is no one-size-fits-all formula for money management. Nevertheless, there are important steps that can set anyone on the path toward financial well-being.

It’s necessary to note that while the following financial tips are beneficial, they should not replace guidance from a licensed financial advisor. Instead, consider them as a starting point to pave the way for financial success.

What is Personal Finance Management (PFM)?

Personal Finance Management (PFM) includes various strategies for handling personal finances. Numerous apps have been developed to cater to diverse personal finance and budgeting needs.

PFM apps play a significant role in managing different aspects of personal finances, such as:

  • Budgeting
  • Saving
  • Investing
  • Paying off debt
  • Planning for retirement
  • Monitoring credit score
  • Setting financial goals

Selecting the most suitable app hinges on aligning its features with your short- and long-term financial objectives. Take, for instance, 2 Ezi, which specialises in budgeting, expense tracking, and facilitating savings for unforeseen circumstances.

How Does Personal Finance Management Work?

While each Personal Finance Management software may vary in its specific features, the general process involves gathering user’s personal information and linking their accounts to provide a comprehensive overview of their finances. It is important to review the software’s terms and conditions as well as its data policy to understand the storage and usage of your information.

PFM programs leverage the collected data to track and monitor spending, offer valuable insights, and perform various tasks that would often require manual effort. Some programs may go a step further by providing tips to enhance your credit score.

Financial tools available through PFM software

PFM apps usually offer a range of tools and features for monitoring different aspects of personal finances, such as bill payments, overall spending patterns, credit score changes, and investment portfolios.

For instance, the 2 Ezi app includes features like subscription management, spending insights, and autopilot savings, aiming to simplify users’ financial management.

Is PFM the same as budgeting?

PFM is not synonymous with budgeting, although budgeting is just one of the many strategies encompassed by PFM. PFM serves as an umbrella term, which includes various money management approaches, with budgeting being just one component.

Budgeting methods vary widely among individuals, ranging from manual entry into Excel documents or handwritten notes. In contrast, PFM apps and tools often offer a more comprehensive solution. These applications often update automatically on a monthly basis, streamlining the budgeting process and saving users time and energy.

PFM Apps: A Step-by-Step Guide

Embark on your Personal Finance Management (PFM) journey by adhering to the following steps.

1. Download the app and set up your account

Upon downloading the PFM app, take a moment to initiate your account setup. This usually involves entering standard information such as your full name, email address, phone number, and creating a robust, unique password.

Depending on the app’s features, you may also input additional details like your home address, bank information, and Social Security number. Exercise caution during this step, and thoroughly read the app’s terms and conditions before providing personal information.

2. Connect all your financial accounts

After setting up your account, the next step is linking all your financial accounts. These are debit and credit cards, investments, mortgage loans, student loans, auto loans, and other accounts. Many PFM apps come with tools and features to facilitate a seamless, secure, and reliable connection between your financial data and the app.

3. Customise your spending and saving categories

With your account ready, customise the app to suit your preferences. 2 Ezi, for instance, lets you establish personalised spending and saving categories, such as “Groceries,” “Student Loan Payments,” or “Vacation Savings.”

Budgeting apps often allow you to invest spare change from your daily purchases. Set thresholds for each category and automate savings transfers within the app for a hassle-free savings experience.

4. Use the PFM tools and features

Once your PFM app reflects your desired settings, let it work for you. Sit back and monitor as it tracks and manages your financial activities. Should you need adjustments, you can easily access the app and modify Settings to align with your financial requirements.

With these steps, you can maximise the potential of PFM apps to efficiently manage and enhance your financial well-being.


Still have questions about Personal Finance Management softwares? Here are some frequently asked questions with informative answers.

Are PFM apps safe and user-friendly?

Yes, most PFM apps are both safe and user-friendly. While it’s advisable to review the privacy policy for assurance, most financial software prioritises the security of your data and does not store or sell it.

Why should I use a PFM app?

PFM apps simplify money management and aim to reduce stress associated with financial tracking. Instead of manually calculating your finances, these apps allow you to input basic information, and the app takes care of the rest, making the process more efficient and less time-consuming.


While recognising the uniqueness of individual financial situations, it is imperative for everyone to possess a basic understanding of personal finance management. Through this journey, there are numerous PFM apps tailored to assist in effectively handling your finances, setting you on the path to wealth creation. Whether your goal is budgeting, saving, investing, or enhancing your credit score, these apps are available to cater to your specific needs.

One notable example is the 2 Ezi app, a comprehensive tool designed to not only streamline personal financial management but also facilitate wealth accumulation and future financial planning. For those eager to initiate the journey towards a more secure financial future, consider downloading and creating an account on the 2 Ezi app today. Your proactive steps now can pave the way for a secure financial future.

DISCLAIMER:  This article is for informational purposes only and does not constitute official financial advice. Please consult a financial advisor.

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