What Are the Best Tips for Private Money Management?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 16 September 2018
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Private money management often has to do with learning how to set goals and identify workable financial strategies to reach those goals. To this end, there are a number of financial consultants who function as personal money managers and help individuals determine how to go about purchasing different types of investments in order to eventually create financial resources that allow them to realize their goals. While the particulars will vary from one situation to another, there are a few basic tips that will be helpful for just about everyone.

One of the first tips of private money management is to identify financial goals. This essentially establishes something for the investor to work toward over a period of time. The goals may be long-term in nature, such as establishing a certain amount of reserves for use by the time the individual reaches retirement age. It is also possible to set short-term goals, such as saving money for a down payment on a home, or even funding a child’s college education. The point is to set very specific goals that can be measured with relative ease.


Another important tip with private money management is to develop very specific plans of action for achieving those goals. Here, the idea is to look at the amount of cash that can be used to purchase investments, weigh the projected returns, and then buy investments that will make it possible to have the cash in hand by the date desired. This part of the private money management process will often require the assistance of a professional broker or other financial consultant who can help locate investments that will pay the desired amount of returns while still carrying a level of risk that the investor considers within reason.

Private money management often requires being actively involved in the ongoing evaluation of the assets held in the financial portfolio. This means being able to determine what is happening in the marketplace today and in the foreseeable future, and being willing to make adjustments in the assets held in order to remain on target for reaching those stated goals. Depending on what happens with different investments, it may be necessary to sell some from time to time and replace them with others. By remaining aware of what is happening with the investments, it is possible to incrementally advance the overall value of the investment portfolio, so that whatever goals the investor has for the future will be met in a timely manner.



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