Essential Money Management Tips

The market is constantly fluctuating, and it is difficult to decide on the best course of action for investing your money. This video from the Wall Street Journal offers a theory for how to intelligently manage your finances without paying too much in brokerage fees.

The video’s main argument is that most investors should be putting their money in index funds that go up and down along with the market. These often have very low administrative costs and negligible fees – allowing each dollar to go father than with individual stocks or handpicked funds. However, investors should be aware that index funds work best when the money stays in the fund for long periods of time. This means resisting the urge to withdraw the funds during a recession or downward slump.

Household finances are complicated, but the Chicago-area team at Cutler & Associates has helped hundreds of Illinois clients manage their debt through bankruptcy and loan modification.