How To Begin Taking Charge Of Your Money

by Karen

on February 25, 2015

Guest Blog by Doug Pi

“ My spouse was in charge of our money and I’m unsure of how to begin taking charge.”

By asking the question, you have taken the first step…

…and ownership of this critical area of your life. It has been our experience that individuals who are in your situation more than rise to the occasion. One needs to look at the flip side of this equation. What if you can be a better steward of your finances than your spouse was? Very often a divorced or widowed person becomes an excellent manager of their finances. There is not a gender issue with one’s ability to take control and thrive in this area. We have written a book and free report for women because our society has done a poor job of encouraging and educating women about holding and growing their nest egg.

Don’t look at the learning curve as a massive and impossible task.

In fact you are very capable of mastering the building blocks to secure your financial future one step at a time. Viewing the subject of money as one huge obstacle to overcome is a pitfall, in which you need to change your thought process and actions now. There are steps you can take today which will empower you.

You have the option of learning about money management on your own.

With much time and effort you can do it. We have had a number of clients who taught themselves about investing. Due to circumstances in their lives such as retirement and traveling or a lack of time they delegate the responsibility to us.

Another option you have is talking to friends or trusted advisers (in other fields) and find out who they recommend going to for advice.

This option will be rewarding if you choose the right adviser for you. There are many ethical and capable advisors available to you. We recommend that you get the name of at least three advisors and interview them to see if you are a fit for each other. Remember that financial advisors, like any expert, will be able to communicate complicated concepts and strategies to you in an understandable manor.

Your relationship with an adviser should begin with a well-defined plan.

The adviser will ask good questions to help you understand your goals. There is a great deal of comfort in having a customized plan. You should feel confident with the plan prior to making any investment decisions. Your sense of security in the plan will bring you a long way toward clear decision making in the future.

“If you fail to plan you are planning to fail” ~ Benjamin Franklin

You are now ready for a customized investment strategy that meets your goals and the metrics set forth in your plan.

We recommend that you ask for an Investment Policy Statement. This is a document used by foundations and large financial intuitions which dictate rules that the investment managers must adhere to. The statement spells out the asset allocation and quality of stocks, bonds or any investment in your portfolio. The Policy Statement should keep you and the management of your money on the intended path.

If you follow the suggestions mentioned above you will find that you are taking control of your finances.

The choice is yours. A sense of independence and confidence can replace feelings of anxiety and fear. The transitions you are making in your personal life can be very rewarding if you see them as an opportunity. The most important question is…… why not you?

premier_logo If you have an interest in receiving more information about financial or retirement planning, please contact us for your free report “A Woman’s Guide to Financial and Retirement Planning.