A man had everything, a successful career, a lavish house, a beautiful family, and a reasonably enviable life. Life took a turn and misfortune hit, and his life touched rock bottom- the reason for bad asset management.
Asset management refers to the process of managing and optimizing a person’s or a business’s assets, such as money, investments, real estate, and other valuable resources. It is essential to understand the importance of proper asset management to ensure financial stability and success in the long run.
Poor asset management can lead to severe financial setbacks, as seen in the scenario of the man who lost everything due to bad asset management. This highlights the need for proper planning, budgeting, and regular monitoring of one’s assets to avoid any mismanagement or unforeseen financial losses. Additionally, diversifying investments and creating emergency funds are critical aspects of asset management that can protect against unexpected financial downturns. By taking a proactive approach to asset management, individuals and businesses can protect their financial well-being and ensure a stable future. The most important part of asset management is protection. The document aspect can be managed through safe eVault which gives layers of security.
What is an eVault?
An eVault is a digital storage system that provides secure and efficient storage of digital assets such as documents, images, videos, and other electronic files. It allows for easy and secure sharing and retrieval of digital assets across different devices and platforms. eVaults offer various features such as access control, version control, and audit trails to ensure the integrity and confidentiality of digital assets. They are commonly used in industries such as finance, healthcare, and legal to manage sensitive data and comply with regulatory requirements. Overall, eVaults offer a convenient and secure way to manage and store digital assets.
Digital Asset Management
Digital Asset Management or DAM is a system that allows businesses to store, organize, retrieve, and distribute digital assets such as images, videos, audio files, and documents in a centralized repository. It helps businesses to efficiently manage their digital assets, ensuring easy access and utilization across various channels and platforms.
One of the essential features of digital asset management is eVaults, which is a secure online storage system for digital assets. eVaults provide a secure, centralized location for storing and sharing digital assets, protecting them from unauthorized access, theft, or loss. They offer various features such as access control, version control, and audit trails, which help businesses maintain the integrity of their digital assets.
Access control allows businesses to control who can access, view, and edit specific digital assets. This ensures that sensitive data or confidential information is only accessible to authorized personnel, thus minimizing the risk of data breaches.
Audit trails provide a record of all the activities related to a particular digital asset, including who accessed it, when it was accessed, and what changes were made. This helps businesses to track the usage of digital assets, ensuring compliance with regulatory requirements and identifying any suspicious activity or unauthorized access.
Key Takeaways For Starting Asset Management Journey
Asset management is the process of managing and optimizing the assets of an individual or business to ensure long-term financial stability and success. Starting the asset management journey can be overwhelming, but with a few essential points, individuals or businesses can take the first step toward successful asset management. Here are eight crucial points to keep in mind:
- Define financial goals
Before starting any asset management plan, it’s essential to define your financial goals. This includes short-term goals such as paying off debts and long-term goals such as retirement planning. Knowing your financial goals will help you develop a customized asset management plan that fits your needs.
- Assess the current financial situation
Conduct a comprehensive review of your current financial situation, including income, expenses, and assets. This helps to identify areas that need improvement and create a budget that reflects your financial goals.
- Develop an investment strategy
Determine your risk tolerance and investment objectives to create an investment strategy that aligns with your financial goals. This includes diversifying your investment portfolio, investing in low-risk investments, and regularly monitoring your investments’ performance.
- Maintain a contingency fund
A contingency fund provides a safety net in case of unexpected expenses or income loss. It’s recommended to have a contingency fund that can cover three to six months’ worth of expenses.
- Manage debt effectively
Manage debt by paying off high-interest debt first and consolidating debt where possible. Keep debt levels under control to avoid financial stress and ensure long-term financial stability.
- Utilize digital tools
Digital tools such as eVaults, eSignature, and eNotary can make asset management more efficient and secure. These tools enable easy and secure storage and sharing of digital assets and documents, streamlining the asset management process.
- Regularly review plan
Periodically reviewing and adjusting the asset management plan ensures that it remains aligned with your financial goals and objectives. Rebalance the investment portfolio periodically, keeping your risk tolerance and investment objectives in mind.
- Seek professional advice
Financial advisors, accountants, or lawyers can provide valuable insights and guidance on asset management. Consider working with a financial advisor to create a personalized asset management plan that fits your unique financial situation and goals.
Conclusion:
A person spends a lifetime accumulating wealth to lead a blissful retirement and achieve other milestones like children’s graduation without going through the stress at the time of need.
Every little effort counts and it is an act of balance to save and even lead a normal life with some small joys like travel and vacation time with family. But after doing everything, if the asset management does not include practices like risk mitigation, asset allocation, or digital eVault for storage of documents, then the safety nest is exposed to unwarranted risks like theft or hacking and systemic risk.
A lifetime’s savings will be washed away if it falls into the hands of an online hacker who can compromise the information. Hence, it is required to continuously upgrade the technology and use a trusted service provider for the storage of digital documents.