NEW YORK (MainStreet)Developing a potent personal finance acumen can take some work, but it does not have to be a daunting undertaking. It is possible that with a few minor adjustments to your approach, you can be well on your way to developing a tight handle over your own financial matters. Here are some ideas from a few personal finance experts to consider.
Regardless of your level of income, being diligent in monitoring your cash flows is vital. "The key to financial success is to track your spending and to know how it relates to your sources of income," said Neal Frankle, a CFP and founder of Wealth Pilgrim. "You can have the best investments in the world, but if your spending is way out of line with the income those investments generate, plus the income you generate outside of your investments, it is going to eat up all of your capital and it won't matter how well you invest."
Frankle emphasizes the value of staying the course. "Have an investment strategy that you accept as less than perfect and be willing to stick with it," he said. "That doesn't necessarily mean that you have to buy and hold, but every investment method has its days in the sun and has its dog days as well."
Learning new financial strategies can be beneficial, but moderation should also be a consideration. "Sometimes people become overeducated and get paralysis from analysis," Frankle said. "There is nothing wrong with becoming more educated, but there is a danger in it because then people get tempted to try something different all the time."
Luke Landes, founder of Consumerism Commentary, also advises individuals to be attentive towards their spending habits. "Start being more aware," he said. "You want to be aware of what comes in and goes out of your bank account so you know how your money is getting in there and where it is going."