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4 Ways to Stay on Top of Your Finances

Stay on Top of Your FinancesOne of the most difficult challenges an individual or family can face is staying on top of  their finances while enjoying day to day life. This may be a daunting task at times, but there are a handful of methods that can produce quantifiable results in the long run.

Ultimately, any method you do use should be tied back to living on a budget in order to maximize your attempts. If you’re looking for some ways to stay on top of your finances hopefully one of the ways below will help you better manage your finances.

Monitoring Life Insurance Policies

It is a mistake to believe that any insurance plan is a “static” investment. On the contrary, some life insurance policies do allow you to grow your money. For example, a UK life assurance policy may enable the client to liquidate a portion of his or her benefits and reinvest them into a more profitable plan. There is no better way to keep on top of one’s policies than to take a proactive stance and invest such liquidity into a profitable position.

Monitor Managed Portfolios

Many so-called “wealth management” systems boast that they will offer you a hands-free method for you to accrue profit over time. Unfortunately, this is not always the case. One of the drawbacks of these plans is the fact that clients rarely check their earnings. So, it is obvious that a proactive stance should be taken. There are various things to look at if you do have a managed portfolio, from the expenses you’re paying for that management to the return the manager is producing. If the fees are high or they’re not staying with the market then consider firing your investment manager and pursuing a self-directed investment approach with low-cost index funds or something similar.

Monthly Plans

Financial management can be a very hands-on experience. One of the most common situations occurs when one loses track of his or her funds only to be unpleasantly surprised later down the line. So, be certain to regularly check monthly balance statements. Are they within the range that you expected? If they are less, it is likely that certain other expenditures need to be reduced. By staying on top of this on a regular basis will help you stick more closely to your budget as opposed to potentially needing to pull money out of your emergency fund if a surprise arises.

Outside Help

One of the issues with money is the unfortunate fact that it can tend to cloud your judgment. Thus, keeping on top of your own finances could be challenging. You may be unwilling to admit that you made a mistake. The situation could also arise when you happen to gloss over a flagrant tax omission. These are only two examples of situations which may dictate the presence of a third party. In simpler terms, an adviser can be a massive benefit to your current situation. He or she will be able to give you relevant, informed and (most importantly) objective advice. You might not enjoy what you hear, but such wisdom may very well save you from a great deal of financial heartache further down the line.

Staying on top of your finances can be challenging though incredibly important. That said, it’s absolutely necessary in order to guarantee fiscal security in the future.

 

 

Photo courtesy of: Morgan

 

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

2 comments

  1. The last point is so important!

  2. This year, I am maximizing every possibility to increase my saving. One of the plans I want to do is to increase my contribution to 401(k) plan. Thanks for the idea John. As soon as possible, I am gonna go check my life insurance to know about your information further. This year I will make it more meaningful and better.

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