Enjoy the ride: big spring cleaning for your finances

By Scott Brown


As I write this article on April 18, 2022, which happens to be both Easter Monday and Tax Day, I am reminded of how grateful we should be and yet, at the same time, how lives seem to be busy and complex. I can imagine many of us enjoying the holiday weekend with family and friends while rushing to finish filing our taxes at the last minute.

With this visual in mind, I thought we could discuss the potential benefits of “cleaning up” or consolidating many of your personal finance accounts and services. One way to do this is to use an account aggregator (AA). AAs are regulated entities that help individuals securely and digitally access and share information from a financial institution where they have an account with another regulated financial institution on the AA’s network. This would include bank accounts, loan information, credit cards, investment accounts, 401(k) accounts, and more, all rolled into one platform to provide a holistic perspective on personal finance.

Some things to consider when choosing an AA include breadth of data and connections (how many institutions they have on their AA platform), ease of use (do they have an app and is it friendly for you to enter your relevant account information), data cleanliness and accuracy (how fast and how often will the AA update your balances, transaction history, etc.). Many of these services allow you to view your net worth and cash statements simply by logging into the AA’s website or app.

Other ways to “clean up” or consolidate the management of your personal finances include limiting the number of credit cards you have, the banks you use, the investment firms and/or financial advisors you work with. work. Keep in mind that there are many reputable financial institutions that offer one-stop shopping for these services and more. In fact, as your wealth grows, you could receive real financial benefits by consolidating your finances with one or a few reputable companies.

Don’t get me wrong, it’s perfectly normal to have relationships with multiple financial institutions. That said, be sure to outline all of your centers of influence to include, but not be limited to: your lawyers, accountants, wealth advisors, etc. so that they have a strong working relationship and work as a team to look out for your best interests.

Always remember that the less time you spend managing all aspects of your personal finances, the more time you will have to enjoy the ride!

The opinions expressed herein reflect the judgment of the author as of the date of the report and are subject to change without notice. The material has been prepared or is distributed for informational purposes only and does not constitute a solicitation or offer to buy any securities or instruments or to participate in any trading strategy. Additional information is available upon request.

All investing involves some degree of risk, whether associated with market volatility, purchasing power or a specific security, including the possible loss of principal. Stocks offer the potential for long-term growth, but can fluctuate more and generate less current income than other investments.

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