Money
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Money, Keeping Your Eye on the Big Picture

When it comes to money, don’t focus too much on the little things. Sure, if you do the smaller things right chances are you’ll be likely to follow through on the more important larger tasks. However time is money and if you spend a significant amount of time focusing on the little things like refinancing your mortgage every time interest rates drop or attempting to increase the return on your investment accounts by a fraction of a percentage or attempting to save that same fraction on investment fees and commissions, you’ll risk losing sight of your financial big picture. Making only a few major decisions correctly is far more important to your financial future and overall financial health than getting many small decisions right. So be sure to heed the old adage, don’t be penny wise and pound foolish. To help you keep your eye on the big picture, the following steps should assist you in staying on track:

Step 1 – Do Your Research

Get your hands on as much information as possible. Between the internet, investment newspapers and periodicals and the library you shouldn’t lack for solid, useful information.

Step 2 - Don’t Fear Decision Making

An important step is making the decision to develop a plan and to stick to it. Making mistakes is part of the process but you must learn from them so as not to repeat them and make better decisions the next time around. If you complete step one, you will reduce the likelihood of making a very costly one.

Step 3 - Set Both Long and Short Term Goals

Establish a plan and prioritize your goals so you know where to apply the majority of your time. You need to manage where you put your investment energies just as you do in other areas of your life.

Step 4 - Be Flexible and Nimble

Recognize that there isn’t one correct answer to your money and investment questions and problems. You can only make the best decision possible based on the information you have at the time. If you make the wrong choices, cut your losses quickly and move on.

Step 5 – Review Your Goals and Your Progress Frequently

Once you’ve established and begun executing your plan, your work is not over. You must check your progress at least annually but preferably quarterly. If an investment has gone south, know when it’s time to sell and get out. Consult with your tax advisor if there are any tax implications for you so you may complete your sale at the most tax advantaged time. Then after some reflection, analysis and research move onto the next opportunity.

Nancy Osborne, ERATE.com Nancy Osborne has had experience in the mortgage business for over 20 years and is a founder of both ERATE, where she is currently the COO and Progressive Capital Funding, where she served as President. She has held real estate licenses in several states and has received both the national Certified Mortgage Consultant and Certified Residential Mortgage Specialist designations. Ms. Osborne is also a primary contributing writer and content developer for ERATE.