Stay On Top Of Your Money In Just A Few Minutes Everyday

blog-1-1-2For people who lead busy lives, managing the family finances may be just one of many important jobs to do. Fortunately taking care of your personal wealth can take less time than you might think. Here’s a quick guide to what you need to do and how often.

Once a year – review your goals and your progress towards them

All of your financial decisions should help to bring you closer to your financial goals. In order for this to happen, you need to be clear about what they are. Like many aspects of life, financial goals can change through time. For young adults their major goal may be to buy a house, whereas for older adults it may be investing strategically to finance a comfortable retirement. In between there may well be children to raise and provide for. This annual review can also be a good time to get some unbiased financial advice from a professional financial adviser.

Once a quarter – make sure everyone is on the same page financially

In households where more than one person is financially responsible it’s important to make sure that the people in question stay on the same financial page. In an ideal world, people would take all financial decisions together. In the real world however, time pressures can make this impractical. Sometimes families need to divide financial tasks. This may be done equally or with one person taking most of the day-to-day responsibilities. In this situation people can drift apart, financially speaking, which can lead to problems later down the line. To prevent this from happening it’s important that all the people concerned have regular catch-ups.

Once a month – go over all financial statements from that month

Financial statements give you the reality of your financial situation. If you’ve kept on top of your finances then you’ll already have a pretty good idea of what they ought to say. You should, however, check them thoroughly to make sure of this. In particular take the time to investigate any transactions on your debit or credit card that you don’t immediately recognise. They may just be something you’d forgotten, but they may also be a sign that fraudsters are testing your card. This is also a good time to look out for any recurring transactions and decide if there are savings to be made. For example if you see three months’ worth of gym fees on your card but you’ve only managed to find the time to go a couple of times then is it really worth the cost? Finally, take a good look over your shopping receipts for the last month and see if there are any unnecessary expenses you could trim.

Once a week – tidy up your financial paperwork

These days paperwork is as likely to mean digital records as it is actual paper ones, but in either case financial records can only be any use if you can actually find them. Decide whether you are going to use paper records, digital records or both. Whichever you choose take some time out once a week to decide what you need to keep and what you don’t. Anything you keep needs to be stored in a safe place and organised in a methodical way. While you can use your own preferred system remember that if anything happens to you, even temporarily, someone else may need to take over. Anything you don’t keep needs to be checked for personal details and if necessary shredded before being recycled.

Once a day – keep track of your spending

It’s generally easier to see an elephant than a mouse. Similarly it’s often easier to remember big purchases like a weekly grocery shop than it is to remember all the little items. Fortunately smartphones and their cameras have made it much easier to stay on top of daily spending. Implement a straightforward rule that each and every purchase needs to be tracked. If you are given a receipt, photograph it. If you don’t get a receipt, photograph the item itself. At the end of each day, store these photos in a safe place to be reviewed later.

4 Simple Steps to Make Better Financial Decisions Today

Life is full of decisions. Some are simple and some are complex. Some are more important than others. Financial decisions have a direct impact on your quality of life. It therefore pays to get them right in every sense of the phrase. Here are 4 tips you can use to improve your financial decision-making. Starting today.

Think about who you are and what your goals are

It may be a cliché to say that everyone’s an individual, but it’s also true and this individuality is reflected in the decisions we take. As well as preferences based on our personality, age also plays a role in our financial decision-making. As children our goal may simply be to save up enough money to afford a special toy. As young adults we our immediate goal may be a deposit on a flat. As we grow into maturity, caring for children and planning for retirement may become more important priorities. In order to make effective decisions, financial or otherwise, we need to understand what our aims are and whether they are short, medium or long-term goals.

Don’t sweat the small stuff – but don’t ignore it either

On the one hand, the old saying “Look after the pennies and the pounds will look after themselves” has stood the test of time because it makes a fair point. Small costs here and there can slip by unnoticed until they turn into a surprisingly large amount. On the other hand, many people lead busy lives and would find it a huge challenge to keep track of every penny they spend and on what, let alone take the time to analyse whether each and every individual purchase was the best possible deal. This is where a little common-sense can go a long way. You don’t need to do your shopping at 4 different supermarkets to get the absolute best price on everything. It can, however, help to keep tabs on your day-to-day spending and think about where you could trim fat without too much inconvenience. For example, the savings you can make by taking a refillable bottle of water on the train to work as opposed to buying a bottle of water at the station can soon mount up and give a pleasant boost to the family finance.

Your personal wealth is your responsibility

Once you are an adult then you are responsible for your own health, wealth and happiness. This may seem like an intimidating prospect, but it can help to break it down into manageable chunks. You can create a budget so that you have more money than month. You can make notes of when financial purchases are due for renewal (anything from mobile contracts to insurance to mortgage deals ending) and find the time to look for the best deals; at least for the significant purchases. You can plan to ensure that there are funds in place to meet medium to long-term needs, whether it’s replacing big-ticket household items or funding a pleasant retirement.

Getting the right financial advice can more than pay for itself

Just because something is your responsibility, it doesn’t mean that you have to do everything single-handedly. Looking through the financial sections of the press can be a confusing and even intimidating experience for some people. Mortgage approvals, interest rates, market developments, mergers and acquisitions… -it can be a challenge to make sense of what it all actually means. Then of course there are conversations with family, friends and colleagues, some of whom may have their own advice to offer. It may be well intentioned but there’s no guarantee that it’s right for your situation. Fortunately a professional financial adviser can help cut through the headlines and jargon and tips from friends and help you to build your own plan for investing in your future. This advice can be, literally, invaluable.