Thursday, July 4, 2013

Smart Asset Management Techniques

All those assets you have that are sitting around your basement don't do you any good. After all, assets that are poorly or under-utilized might as well not be assets at all. In order to make the most of what you own, it’s essential to develop an asset management program that incorporates several different techniques.

Know what you have
Start by keeping an in-depth assessment of your current assets. This includes not only your financial assets, but those in physical form as well. If you’ve lived in the same house for a long time, you may have lost track of all the stuff you've accumulated over the years. In the past, this meant consulting with an asset management firm, and allowing professionals into your home and office to document all of your belongings for a hefty fee. However, recently there has been a surge in asset management applications for smartphones and tablets, which can allow an individual to document possessions in case of any accidents or surprises. Having a detailed and itemized list of all physical assets isn’t just a smart asset management technique in case of an accident, but a good starting place and reminder for the rest of your asset management strategies.

Assess your current risks
Any risks you take will be potentially damaging to the future portfolio of your assets. However, there are many ways to reduce your current risks. For example, if you live in a flood area, installing shelves to keep any belongings off the basement floor can save thousands in damage for the price of a few Ikea shelves. Diversifying your portfolio, likewise, can save a great deal of money in the event that anything should happen to a specific part of the market in which you’re heavily invested. In the information age, any investment in markets is unstable at best, since markets that are strong and booming one year may be suddenly obsolete the next. Regardless of bubbles bursting, the potential safety of diversification can vastly outweigh the risks of having your portfolio concentrated in a specific area.

Streamline current operations
Once you’re familiar with your current state of affairs, trim the fat. Quietly underperforming assets may not seem to be much of a risk, but they aren’t doing you any good in that situation either. Consider pulling out what you have tied up in smaller operations and combining those investments into a single larger one. Similarly, go through the list of your physical possessions and see which ones are actually assets that you should hold on. Some might be costing you money simply by existing or are preventing you from making improvements to your home or business because of the space they take up.
Consider streamlining your assets both digitally and physically, in order to make certain that you’re making the most of every penny and every belonging you have. This can not only ease some of the clutter and worry that most people have about their current investments, but also give you a clear, firm starting point from which you can launch more operations. Knowing where you’re starting from can give you a much more secure idea about where to go next.

Asset Panda is an asset management app and software. Learn more at