In preparation for Passover: this is how you will put your finances in order

Passover for nothing? For the Holy Passover was blessed over the houses of our ancestors in Egypt (from the Haggadah). Pesach means skipping. But when it comes to investments and savings there is no room for skipping. Get-rich-quick stories fit for fairy tales. In reality, it's about patience, self-control and the ability to run long distances.

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This time, in honor of the holiday that started on Seder night, I chose to deviate from my custom and instead of writing about the capital market, to repeat again what we all know but don't always remember to do – to put money and savings in order to reduce expenses and increase disposable income that can be harnessed to make more money.

Mapping: As a first step we will map all our savings and investments. We will record where our money is. Pension funds, training funds, provident funds, deposits and dormant funds if any. It may require some work from us but today in the age of digital information it is much easier than before.

The messages from the bank and the financial institutions, whether they come in an envelope by mail or by digital means, contain very important information for us. For example: how much money we have in the pension fund and how much we gained or lost in the last year. But above all it will allow us to know where the money is. After we have all this information, we can move on to the next step.

Cleaning: After we know where the money is, we will start cleaning it of dirt that has accumulated on it over the years. Let's start with the commissions and management fees we pay for managing our money. In many cases, when you don't continuously monitor the cost of savings, you lose a lot of money over the years.

This is also the place to make an adjustment. That is, after checking commissions and management fees and reducing them as much as possible, we must adjust the savings and investments to our changing lives. Just as we change over the years, our investment products should also change and adapt to our needs. This does not happen automatically and requires our monitoring and intervention.

For example: at a young age we can take bigger risks in the pension fund and choose a stock route because in the long term the stock market is always on the rise and corrects itself after falls. But as we get closer to retirement age, we will have to change the nature of the investment path because we don't have enough time to take risks.
Mobility: just like with a cell phone, so also with the bank account and the other various financial products. You can move the money. You can transfer an account from bank to bank. It is possible to transfer funds from a training fund in company X to a fund in company Y and so on. Why mobile? To transfer the money to a body that produces a higher average return and reduce management fees along the way.

Consolidation: It is possible to combine savings plans, training funds and other savings products in the same body (investment house, insurance company, etc.) and sometimes even in the same plan. It is more efficient and allows you to easily track the accumulated funds. It also increases our bargaining power with those who manage our money.
Mitov: In this case I don't mean maximizing the returns that our money can bring us because that's what the entire column is about. I mean checking and defining beneficiaries, authorized persons and heirs in the various investment products. First and foremost in the pension fund but also in the bank account and in the various policies.

By the way, there is also good news for those who have difficulty carrying out this order, today you can find quite a few bodies that know how to do this and even specialize in it. Although it costs money, but in the final account it is worth much more.

Daniel Shabaks is the CEO of Hirshovitz Finance. The above should not be seen as investment advice, a recommendation or an opinion regarding the feasibility of investing in financial products of any kind and type.