4 tips to keep track of your money

Managing your finances can be a daunting task, especially when you have multiple accounts, investments and debts spread out across different financial institutions. But there are things you can do to make financial management less overwhelming.

Bringing all your financial data together in one place allows you to view your entire financial picture. This makes it easier to track your spending, identify areas where you may be overspending, and stay on top of your bills and payments.

Let’s explore some tips for keeping track of your money and making informed financial decisions.

Use tools that can help

An aggregation tool is a software program or application that allows you to show all your financial accounts together in one place, including bank accounts, credit card accounts, loans, investments and more. One of the key benefits of using this tool is that you can get a clear picture of your net worth, which is the total value of your assets minus your liabilities. By monitoring your net worth, you'll be able to see what's going out and coming in, helping you make more informed financial decisions.

Some tools also have the added function of allowing you to set financial goals and track your progress toward achieving them. You can set a budget, track your spending and monitor your savings, as well as track your investments and monitor and diversify your portfolio.

You can also use an aggregation tool to monitor all your bills and payments, by setting reminders for due dates and tracking your bill payments. This will help you avoid late fees and penalties and prevent you from damaging your credit score.

Set reminders to build smart habits

Getting your finances in one place is just the start. To truly make the most of your financial plan, you'll need to set reminders to build smart habits and check back in with your financial plan on a regular basis.

Consider setting reminders to review your financial plan at least once a month. This will give you the opportunity to check in on your progress and make any necessary adjustments. It's also a good idea to set reminders to check your account balances and review your budget regularly. By doing so, you'll be able to catch any discrepancies or issues early on and take action before they become major problems.

Another important habit to develop is to regularly track your net worth. This will give you a clear picture of your financial position and help you identify areas where you may need to make changes or adjustments. You can use a tool like a net worth calculator to make this process easier. If your accounts are all linked in one place, it makes it easier to see an accurate view of your net worth.

Finally, it's essential to set reminders to review your investment portfolio and ensure that it's properly diversified. This will help you minimize risk and maximize returns. By setting reminders and building smart habits, you'll be able to stay on top of your finances and make the most of your financial plan.

Stay on track for your goals

Knowing how much you're making and spending is good, but it's also important to make sure you're on track for your goals.

Lean on your financial tool(s) to set financial goals and track your progress toward achieving them. For example, you may have a goal to save for a vacation, an emergency fund or a down payment on a home. By setting these goals and tracking your progress, you'll be able to see how much you need to save each month and how much you need to save in total.

Create a budget

Leverage your tool of choice to create a budget that is tailored to your specific needs and based on your income and expenses and your financial goals.

Planning with a budget can make it easier to identify areas where you may be overspending. For example, you may find that you're spending too much on dining out or entertainment and decide to cut back in those areas to save more money.

Are financial planning tools safe?

It's important to consider the safety of your personal and financial information. However, customers of trusted financial institutions can rest assured that there are typically strict security protocols in place to protect customer information. You can typically unlink accounts at any time.

Overall, using an aggregation tool can be a convenient and secure way to manage your finances. Get started today by talking with a J.P. Morgan Wealth Management advisor.

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