Attention! Don’t Take Your Financial Account Lightly


Types of Financial Accounting Services in Dubai, UAE

1. Good classification and analysis of attendance records

The first and best way to manage money is to be diligent in bookkeeping, which can count personal income and expenditure, and then analyze the financial situation and economic structure of the financier. Of course, being diligent in bookkeeping doesn't mean that everything should be recorded. We can fill in the daily income and points by certain categories, and then summarize the data every month. Speaking of classification, we don't need to make a balance sheet and cash flow statement like professionals, but we can simply group each item. The income can be divided into work income (wages, bonuses, subsidies, benefits), investment income (interest, dividends, rent) and other income (winnings, gifts), while the expenditure can be divided into daily expenses (which can be subdivided into daily expenses, food expenses, rent, commuting expenses, medical expenses), investment expenses and other expenses. The purpose of this is to enable us to find out the cause of the general direction when the economic situation is abnormal in the future, so that we can take appropriate measures to effectively control it. In addition to these statistical work, we should also analyze these data frequently, generally once a quarter. Pay attention to the skills when analyzing. You can make a vertical comparison by month, and more accurate is to make a horizontal comparison between the data of this quarter and the data of the same period last year. Because in different months, the income and expenditure are not always in balance. For example, there will be year-end bonus at the end of the year, and the income will increase significantly. At the beginning of the year, there will be large expenditures due to the Spring Festival. We should take these abnormal changes in income and expenditure into account when analyzing.


2. Monitor your financial account from time to time

When we invest our financial management funds into various investments, we have already started our financial management plan. In order to avoid risks, it is best to use financial management funds for different financial management tools, which involves account management. Each account should be separated independently, otherwise it will cause confusion of book funds and borrowing of funds between accounts. In principle, the funds in each account should maintain the trend of continuous growth. On the one hand, a part of the monthly income will be withdrawn as new capital injection, and on the other hand, it is the income from the original capital investment. But not everything is planned. We must always monitor our wealth management accounts, especially those invested in risky instruments. By comparing the market value of this month with that of last month, we can calculate the rate of return and compare it with the detailed target. If we find that the book capital has a serious trend of shrinking, or the return fails to meet our expected target after decomposition, we need to analyze the reason for its shrinking, and quickly determine whether to continue to hold or sell decisively. At the same time, it also reminds us to pay close attention to the macroeconomic situation and the situation of various industries, and find new and better investment and financial management tools to help us obtain greater returns or reduce more risks.


3. The key to investment and financial management is to adhere to

Everything should be done until the end, so should investment and financial management. If we decide to use 20% of the monthly income as the financial management fund, we should insist on withdrawing each income in proportion and entering it into the financial management account. Note that the income mentioned here is not just salary income, but all income from various sources should be withdrawn, and it should be achieved within the financial management period of up to 30 years. We can think of this as a 20% tax imposed by the government. After entering the financial account, we should not think about it. Except for special circumstances, we are not allowed to think about this account. When you retire, you will be surprised to find that I already have such a large amount of wealth. In fact, the main source of financial management funds is our monthly investment, and the interest only accounts for a small part. So if we can't adhere to our financial management plan and do not adhere to the monthly investment according to the plan, we can't achieve our financial management goal. In philosophical terms, the investment in financial management funds is the growth of quantity, and a long time is the catalyst. The accumulation of equivalent to a certain degree will become a qualitative leap. Without quantity, there will be no quality. It can be seen that sticking to investment is often the most important factor for financial success.


To sum up, successful financial management must be steady step by step, so managing and monitoring your financial management account at all times can help you achieve success in investment and financial management.