Los Angeles, CA, January 08, 2014 --(PR.com
)-- 1) Embrace technology - There is so much to do in peoples daily lives without enough time. For example, a person may have the same car payments due every month, then use online banking to auto pay it.
There are many Personal Finance Software solutions available for free to use. A wise person once said, "A messy mind is a messy house". Maurice Berdugo likes to apply this to a person's finances, "a messy mind is a messy financial life." Taking advantage of the PFM (Personal Finance Management) tools available and letting the software manage and automate as much as possible is the best way to go.
2) Set up a budget at the beginning of the year - Although it may sound simple, most Americans put in a solid 9 hours a day to earn a buck, but zero controls on how to spend it. Putting a plan in place and using technology to "track and monitor", at the very least helps to focus to be cognizant of how much is being spend and on what. The saying that "we can't manage what we can't measure" comes to mind.
3) Setting up an Emergency Fund - Advisers are always saying consistently "smart personal finance management starts with setting aside 6 months of take home pay in an emergency fund." People never know the future nor what will happen at moment's notice. Setting aside 6 months of savings in an emergency fund is the smartest defense to protect ourselves from events that our completely out of our control.
4) Don't play the market unless you know what you are doing - There are many "do it yourself investors" that think they know how to invest in the market, but they plain and simply don't. For starters they are in a world with a huge disadvantage compared to institutional investors. Professional money managers invest millions of dollars into hiring top mathematical engineers to come up with complex forecasts. Let alone the large investments made in sophisticated, top of the line software that can detect any price advantage in the stock market. If someone does not invest for a living, it would be wise to hire someone that does.
5) Read up - The internet offers a plethora of advice for free. Educating oneself, joining a LinkedIn group or contacting others for tips and ideas is the best path. One should chuck out ones ego throw the door and "listen" to what reliable experts have to say, as most of the time what they are saying is simple, sound and applicable advice. Taking 1 hour a week to read up on advice, it's nourishment for ones financial soul.
CEO at BP Analytics