How often do you check the interest rates on your investments? Even if you found the best home for your surplus cash a few months ago, there is no guarantee the interest rate is still just as good. Things change regularly in the world of finance and investments, so you must be diligent if you want to get the best return on a regular basis.
Set it and forget it
Many of us are guilty of using the above method to set up our investments. We do the hard work to find the accounts offering the best deals in our situation and then forget all about them. It can be many months or (in the worst case scenario) years before we realise how poor the interest rate has become.
Clearly we need to take a different approach. We need to make sure we check on our investments regularly – something we should be doing anyway – to make sure they are still performing well for us.
Set a reminder
How do you remember other important tasks you need to do? Do you set reminders or alarms on your cell phone? Maybe you have a desk calendar – either online, on your computer or an old paper and pen version – that gets updated with important notes.
Whatever method works for you, add a reminder to your schedule to check the performance of your investments on a regular basis. Ideally a monthly check is good – interest rates can change at any time and you don’t want to miss out on more than a month’s worth of interest if you can help it. This is particularly important if you rely on your investments to provide you with an income. In this situation it is best to make sure your investment check happens every month without fail.
Set a course for a more positive attitude towards your investments
It’s easy to become lazy when it comes to investments. We arrange them, sink the money into whatever account, bond or other investment vehicle works best, and that’s it. The rest takes care of itself.
But of course we have to keep an eye on these investments otherwise we may find they take a downward turn. As we’ve seen, this can happen very easily and it does happen to plenty of people every single day.
The most important thing to remember is that you and you alone are responsible for your investments. Interest rates change all the time and it is important to always get the best return if you want to make sure you can stay ahead of inflation. This alone can diminish the value of your investments, and when it is combined with lower interest rates you can see the damage it can do.
If you do just one thing with your investments today, make sure it’s this: set a reminder for the next available weekend to spend an hour or so checking interest rates. You will be glad you did.