Personal Wealth Management Tips for Financial Stability

Financial Stability - Complete Controller

For many, managing personal wealth may seem like a complex endeavor. Add to this, unforeseen events that may appear throughout the year, and the situation becomes even more intricate. Use these tips to simplify the process and ensure excellent financial management.

How to Save

Allocating a fraction of your monthly income to savings is essential for healthy finances. Consider dividing your savings into three categories:

  • Short Term: Keep these funds in a savings account that, although it provides lower profitability, allows for immediate access.
  • Medium Term: Keeping the horizon in mind, mutual funds or stocks are examples of options that carry some risk, but if used for several years, can serve as viable alternatives to consider.
  • Long Term: A Voluntary Pension Savings is a great alternative as it increases your pension and lowers the tax base on which income tax is calculated. Check out America's Best Bookkeepers

Small Everyday Savings

It is always good practice to keep a daily record of your expenses over a period of at least two months. This allows you to become more aware of exactly where you are spending your monthly income. This practice also facilitates the establishment of a savings goal, which can be contributed to daily.

Sometimes we forget to count the “ant expenses,” those small sums of money that we consider irrelevant given their magnitude. Adding up these ancillary expenses will illustrate how these charges add up to a considerable amount. Awareness of these, as well as all our other spending habits, is gained only through a detailed record of our expenditures. Check out America's Best Bookkeepers


How to Take Care of your Money

Are you prepared to face a serious health problem, a long period of unemployment, or any other major inconvenience? To deal with this type of situation, you might consider:

  • Having a source of savings.
  • Allocating a part of your monthly income to unemployment insurance, housing, and/or education.
  • Obtaining life insurance with a refund, which allows beneficiaries a cash amount in case of accidental or natural death of the insured and, in case of survival, delivers a return benefit.
  • Having some anti-theft or anti-fraud insurance on your debit/credit cards. Also, refrain from having your pin saved in your wallet. Check out America's Best Bookkeepers

How to Manage Debt

These types of existing credits differ from each other according to their objective.

  • Mortgage loans: When established with a long-term horizon in mind, these loans require a periodic review to ensure that you are facing the most favorable market conditions.
  • Consumer loans: These loans are set at a lower horizon, so it is important to make sure that you can cover the entire monthly payment.
  • Credit cards: With credit cards, it is critical to pay the total amount of the debt each month. The minimum payment should only be used in cases of extreme difficulty. If you have more than one credit card, consider which one offers the most favorable interest rate and refrain from getting carried away by promotions or associated offers. If your financial situation becomes more complicated and you are at risk of a cancelation fee, evaluate the possibility of repaying the debt.


How to Efficiently Handle your Credit Card

In some situations, a credit card may be the only means available to satisfy our basic needs. It is important to be aware of how to use them efficiently so as not to accrue large amounts of debt. To do this, you must pay as much off as you possibly can.

Follow the tips mentioned above to manage your personal wealth and gain financial stability.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers