Simplifying management of your finances

If you want to get a hold of your finances review my suggested list of actions you can take to diagnose your situation and start fixing your financial problems.

1. Write down the particular issues that you have with your finances. Consider the following examples and then create your customized list.

• Several bank accounts at different institutions
• Several credit card accounts
  
• Commingling of personal and business expenses in the same bank and credit card accounts
  
• Retirement plans at several brokerage house, or with various previous employers
• Inconsistency on the use of payment options: you pay some bills online, some with checks, some by direct draft, etc. making hard to keep a handle on all of it.
• You have several credit cards, and are not familiar with their terms.
• Your files are in disarray. You can't find the tax records you need, the insurance documentation to file a claim, the receipts to claim insurance on equipment that you bought that is under warranty.
• You are "drowning" on a "sea" of receipts from business trips and spending valuable personal time preparing financial reports
• You are tired of doing it all and are considering options to help you handle them and free up your time.
  

2. Write down the changes that you would like to make.

• Do you want to organize your files, but feel overwhelmed by the prospect?
  
• Do you want to know where you money is going so you can adjust your spending, but don't have the time or the inclination to gather the information and prepare a report?
  
• Do you want to take a hold of your retirement accounts to make it easier to track your investments, but are unsure on how to proceed?
• Do you want to get help making the payments, reconciling the accounts, and keeping your files in order?

3. Decide on the changes you desire and consult a financial professional to help you get started. Interview the professional, check his or her credentials and get references. Contact the governing boards to confirm that they are members in good standing. Ask how they protect your financial information.

5. Get an engagement letter that clearly specify what work will be completed and how . Make sure that you are clear on what is included and what is not.