Many of us have more than one active bank account. Whether or not this is necessary, It sometimes gets complicated to access all of them.
But who says you have to access all your accounts individually? These days, you can simply monitor/view all your balances from a single app/platform.
What does it mean to Track Balances?
To track balances refers to long-term and comprehensive monitoring of balances. All of a person’s accounts are covered in this process. Think of it as keeping an eye on your portfolio.
Tracking balances is a crucial activity. It is a big part of portfolio management. Also, it is not only for investors but for every single individual who values their money.
How Tracking Balances is Done
Don’t be fooled into taking balance tracking lightly. Nothing about it is really simple. I mean from the software that helps make tracking possible to setting up the accounts to be monitored, a lot of technicality is involved.
In saying that, we’ve already revealed how tracking balances is done. There’s the software part to it. There’s the setup part to it. We explain both in this section.
Determine the Type of Accounts for the Balance Tracking Objective
What type of accounts do you want to track? For clarity, there are traditional accounts and crypto accounts. It would be difficult if not impossible to track both at once.
Your best bet is to track the balances of your traditional accounts separately from those of your digital accounts.
So, once you make that choice, you’re set for the next step.
Finding the Right Balance Tracking Software
Number two is finding the right software. What else would it be? Only a digital platform can be used to track balances in your digital accounts.
But you must know that the software differs. For instance, one software will only track balances in one type of account. So, you have to find software for tracking balances on your crypto accounts and another for your regular bank accounts.
Some things to consider in your search are:
- Security features: Balance tracking software requires backend access to digital accounts. This is how they provide real-time balance monitoring. The risk with this is that if such a system is compromised, hackers may gain access to all the accounts being tracked.
User’s funds can then be stolen with ease.
You surely don’t want that to happen to you. This explains why extreme precautions must be taken. How? By ensuring that the balance tracking software of your choice possesses robust security measures.
Confirm the availability of pin, password, OTP, 2FA, and biometric authentication. Also, confirm that account security issues are quickly addressed. You want to use a service that promptly blocks suspicious login attempts, monitors compliance, and sends security alerts/notifications.
- Customer Support:
A reliable customer support is another good pick. Platforms that have poor customer service should not be trusted. Tell tale signs of poor services are slow response times, unhelpful support, and poor attitude from representatives.
Furthermore, it is important to look at other user’s reviews.
Good customer service for balance tracking software is essential. Oftentimes, it translates to quick assistance and even proper dissemination of information.
- Clarity of use:
Advanced systems are now ditching complex, technical interfaces. You should do the same. There’s no usefulness in picking a balance tracking solution where you don’t know what half of the buttons do.
Clarity of use should rank in your checklist. Think of how easy it is to access features and locate buttons. Can you find your total portfolio balance quickly if you are in a hurry?
Also, consider the general appearance and settings. One time when this might come in handy is when you access it with a smaller or larger-sized device. All parts of the platform pages must remain visible, accessible, and responsive.
Making the Necessary Setup
Part three of how tracking balances is done is the accounts setup.
At this point, you have a balance tracking software in mind. You must have also registered an account and successfully logged in.
From there, the next step is to grant permission to the balance tracker app. This will most likely mean logging in to the apps where your funds are - within your balance tracker dashboard. The balance tracker takes things up from here. It continues to access and report the value of funds in each of the connected wallets.
Extreme caution must be exercised during this setup.
First, confirm that your network connection is secure. Hackers are known to exploit public wifi networks. Using such connections or any insecure network puts you at risk.
Sensitive information such as passcodes, secret phrases, etc. can be stolen. You surely don’t want that, especially concerning your digital wallets.
Why Tracking Balances is Important
Why is tracking balances important? Why not log in to your accounts when you need to see your balance?
“Don’t put all your eggs in one basket.” This investor’s quote gives perspective to tracking balances. If all your investments are with one company or all your funds in one digital platform, you’re walking the wrong path.
The pros have a good reason for the eggs quote. One is that no platform is completely impregnable. Think of this in terms of a hack.
Ideally, all your investment funds in a single wallet give you a slim chance if the wallet gets hacked.
Secondly, no investment is completely safe or continuously profitable. I mean, even the price of gold sometimes goes bearish. Putting all your savings in gold - for example - will translate to a loss in such bearish seasons.
So the rule on investment is to purchase different assets and store them in different mediums/platforms. That implies having your funds on different digital wallets. But then it becomes quite a stretch trying to follow up.
To cut down on the process, certain apps allow you to connect all your wallets. This gives you a sort of centralized viewpoint of your balances. That way, you can afford to not keep your ‘eggs’ in one basket and also not stress over viewing, trading or performing other transactions on them.
- Comprehensive View: Having all your balances in one place provides a holistic view of your financial health. This helps in making informed decisions and maintaining financial stability.
- Risk Management: Distributing your assets across multiple platforms or investments minimizes risk. Tracking balances helps ensure that you don’t overlook any accounts or assets that could impact your overall financial situation.
- Efficient Monitoring: Regular monitoring helps identify discrepancies or unauthorized transactions quickly, reducing the potential impact of fraud or errors.
- Convenience: With balance tracking, you avoid the hassle of logging into multiple accounts individually. It streamlines your financial management process.
Best Practices for Balance Tracking
Balance tracking requires careful planning and follow-up from users. Below are some best practices:
- Regular Updates: Frequently update your tracking software and review your balances. Doing so keeps you abreast of the latest software changes. It also ensures you notice any issues on time.
- Security Vigilance: Regularly check your account security settings and be aware of any new security features. You want to take advantage of such features. You also want to adjust security settings as necessary to keep your account safe.
- Review Permissions: Periodically review the permissions granted to your balance tracking software. Ensure that nothing is out of place and adjust as needed. Remember that only necessary data should be accessed.
- Backup Your Data: Ensure that your balance tracking software provides data backup options. This helps prevent loss of financial information in case of technical issues.
Conclusion
Effective balance tracking combines financial management with ease of access. It allows you to monitor your funds. Interestingly, the process only involves either traditional or crypto accounts.
