Although countless of millions of people in the US struggle every month with this chore, keeping efficient track of one’s finances and investments is not a complicated matter. Simply put, this only entails taking this vitally important task seriously enough. Moreover, with all the free online tools in today’s digital age, this practice becomes easier, more effective and consumes less time than ever before.
A good start is a mutual agreement with one’s spouse, or partner, as to who is going to manage or review the finances in the household or business. Having a designated space in one’s home with items such as: outstanding bills, a listing of financial institutions managing one’s money and a list of one’s goals is a must. Next comes designating a specific time a month to go over the finances and committing to it–allowing for flexibility.
Setting Goals and Prioritizing
Knowing where one is financially is one thing; knowing where one wants to go is another. Moreover, knowing how to get there is something totally different. Is the goal a retirement account or vacation? Perhaps it’s simply getting out of debt. One will never know if they are going in the right direction of achieving one’s goals if they do not efficiently track this journey in life.
What Comes In and What Goes Out
Although sticking to a budget is vitally important, one cannot even do this unless one knows what finances come in as income, what finances go out as expenditures and how much a cash flow is left over to apply to whatever goals one prioritizes.
Get A Strategy
Setting a strategy to meet one’s goals or at least knowing how far one is from obtaining those goals is of utmost importance. Furthermore, sticking to a plan is even more vital and knowing if the plan is working efficiently enough is a must.
Keeping An Eye On One’s Investments
Familiarizing oneself with the investment statements, terms and any updated documents received from a broker, banker and/or investment planner helps assure a person’s investments stay accurate. If none are being received, then follow up without delay. Not receiving a statement repeatedly is a sure sign of possible trouble requiring one’s immediate attention.
With today’s information highway, also known as the Internet, gathering information and researching it becomes an easier task. Reading company prospectuses, research reports, annual reports and even a company’s minutes many times gleans a wealth of information about one’s personal investments and the investments of the financial institution itself.
Unless one has a designated agent or trustworthy person who can be responsible for this chore, it is better to have all statements sent directly to the investor. Doing so makes knowing the direction the financial institution takes with the money invested an easier task; moreover, this helps bring light any possible warning signs for an investor.
With today’s digital world, keeping abreast of one’s investments has never been easier. Consequently, the burden is on the investor to keep track of their own finances–so choose wisely.