Handling Your Finances Yourself: Is it Democratization or Amateurization?

If you have made the decision to handle your finances yourself, you may be wondering whether doing so is classed as democratization or amateurization.

In order to come to an informed conclusion, both terms must be clearly defined with democratization, in the very simplest of terms, referring to the act of removing control of a select number of global banks and institutions and amateurization referring to non-professionals applying solutions offered by global banks and institutions themselves. It can be near impossible to know where to begin when it comes to handling your finances yourself, especially if you have always relied on a third party to do so, but by familiarizing yourself with the following tips and tricks, you can master the art of money management and track your various investments in a way that suits you and your ever-expanding investment portfolio. 

Make the Most of Free Financial Advice 

If you are in the process of handling your finances yourself for the first time, it may benefit you to make the most of free financial advice if and when you can. It can allow you to answer any questions or queries you may have and, perhaps most importantly, reassure you that you are on the right track and are making the right decision for you and your financial future. It can also enable you to tap into decades worth of expert knowledge, experience, and expertise in the often-tricky field of money management so you can walk away with a wealth of invaluable information at no additional cost. If you are struggling to decide whether to take matters into your own hands or rely on global banks and institutions when it comes to handling your finances yourself, for example, a financial advisor can explain your options in great detail and ensure you are equipped with the right tools and information to make an informed decision. It is, however, worth noting that a basic understanding of the investment process from start to finish may be required before making the most of free financial advice with only a basic service, often all that may be offered to you. 

Capitalize on Available Technology 

If you have made the decision to handle your finances yourself, you must capitalize on available technology to ensure the entire process runs as smoothly as possible from start to finish. It may sound as if it would command a significant chunk of your budget but it is, in actual fact, one of the most cost-effective options available to you as an amateur investor. It has revolutionized the global investment landscape and is a great route to venture down if you are determined to succeed with little to no manual intervention from fellow investors or financial advisors. If you have the technical skills and know-how to navigate the expanse of technology available to you in today’s digital era, it may be worth researching apps to track your investments as well as so-called robo-advisors which are, put simply, online-only financial advisors that provide basic financial advice and money management tips and tricks based on mathematical equations or algorithms with minimal human involvement required. It has exploded in popularity in the past couple of years and is expected to become commonplace within the next decade as a growing number of industries and sectors make the highly anticipated switch to operating digitally as opposed to traditionally. 

Exercise Self-Discipline 

In the wider world of money management, a great deal of self-discipline is required to ensure you succeed on a long-term basis as you contend with handling your finances yourself. If you are an experienced investor, for example, you will be aware of how volatile and unstable the investment market can be and how little it can take for your investment portfolio to rise and plummet as a result of a number of external factors. In order to prevent yourself from becoming overwhelmed or from letting your emotions get the better of you, you must exercise a degree of self-discipline and reassure yourself on an ongoing basis that whilst you may be wondering whether you will ever master the art of handling your finances yourself, there is always help at hand and you will get accustomed to successfully managing your money in time. If you decide to capitalize on available technology as opposed to making the most of free financial advice, for example, you must still be confident that the investment strategy you have chosen will succeed on a long-term basis with the actions you take and the decisions you make crucial in helping you avoid making any decisions you are only likely to regret down the line or abandoning your strategy altogether. 

Be Brave 

If you have never handled your finances yourself, you may be wondering not only whether it is classed as democratization or amateurization but whether you are capable of successfully doing so with little to no help from a third party. It may, therefore, surprise you to know that it is easier than you think and as long as you are equipped with the right tools and information from the very onset, you should have no problem mastering the art of money management when it comes to your personal finances or your investment portfolio. It may seem daunting or scary but by exercising greater control over your hard-earned cash and making decisions that suit you and your finances, you may end up wondering why you didn't start sooner. 

If you are toying with the idea of handling your finances yourself, you may have questioned whether doing so is classed as democratization or amateurization. It can, however, be classed as both with the act of removing control of a select number of global banks and institutions and non-professionals applying solutions offered by global banks and institutions themselves both highly likely when you take matters into your own hands and learn to handle your finances in a way that suits you and your financial future.