One of the most important things you can do for your personal finances is to keep track of what is going on with your financial records. Each month, you should reconcile your account statements. Whether you do it by hand or use personal finance software to verify your purchases, it should be a monthly ritual to go through your account statements. Bank statements, credit card statements and even your retirement account or other investment account statements should be looked at. This is important for two reasons:
- It can help you keep track of where you are (and where you are going) in terms of personal finances, providing you with a snapshot of your finances on a regular basis.
- You can keep an eye on your personal financial information, hopefully preventing serious damage by identity fraud.
Other things you should watch regularly include your credit report and your insurance statements, as well as periodic checks of your investment portfolio. This is important, since it is sometimes necessary to adjust your holdings in order to ensure that your portfolio is growing at an acceptable rate.
Whether you want to check your personal finances in order to help you maximize your growth, or whether you want to make sure that your identity is safe, keeping an eye on your personal finances is very important.