With the hectic pace of today’s world, many people have placed their financial matters in the hands of a professional. This is a great choice for those who have a very involved financial portfolio with lots of accounts and intricate issues that need handled. While there are benefits to having someone assist you with your finances, the benefits of handling your own finances are far greater.
Allowing someone else to take care of your finances for you can save you time, but it also opens you up to a world of danger. There have been numerous reports of compromised databases in a variety of areas, from hospitals to government agencies to financial firms. Allowing others to access your financial information opens you up to these issues. While databases and data storage used by finance professionals is thought to be safe, for the most part, there are always accidents and instances of human error that can render your information unsafe. Then you have to deal with a long, drawn-out process of monitoring your credit and watching for stolen or compromised accounts. Handling everything yourself does not completely eliminate these risks, but it does greatly diminish them.
Having a professional handle your finances is not free – they do charge a fee for their services. Depending on how involved your financial life is, there can be other added expenses that will add up over time. When you opt to handle your financial issues yourself, you’ll save money which can be spent in other areas. Likewise, if your financial portfolio is very simple and straight-forward and you don’t have many accounts to deal with, the cost of hiring a professional just doesn’t make sense. There is also a time savings involved with handling your own finances. You can make decisions yourself on your own time without having to schedule an office visit, or have a lengthy discussion with your finance professional. Set aside an hour or two a week to go over your bills, investments and assets and reconcile everything.
Handling your finances yourself gives you more control over what your money is doing. You don’t have to call for advice with the chance of being talked out of what you really want to do or pressured into something just because your financial professional thinks it’s a good idea. You can also make decisions as necessary without having to wait for your financial professional to be in the office. If you want to buy 100 shares of a hot stock at midnight, you can handle it yourself without waiting or missing out on the deal. You also don’t have to worry about being judged by your financial professional for the decisions you make. You can do what you want with your money and only have to answer to yourself.
There are other benefits involved with handling your own finances. The most important thing is to pick a solution that you are comfortable with, and make your money work for you.
- License: Creative Commons image source
David Gaston is an accountant and guest author at Best Finance Schools, where he contributed to the guide to masters of finance online programs.