MONEY

MANAGEMENT
PHILOSOPHIES
OBJECTIVE:

• IDENTIFY MONEY MANAGEMENT

PHILOSOPHY
MONEY MANAGEMENT PHILOSOPHIES

• MONEY MANAGEMENT IS THE PROCESS OF BUDGETING,

SAVING, INVESTING, SPENDING OR OTHERWISE
OVERSEEING THE CASH USAGE OF AN INDIVIDUAL OR
GROUP.
• IT IS ALSO CALLED INVESTMENT MANAGEMENT.
PLANNING AHEAD

• ONE OF THE BASES OF MONEY MANAGEMENT

PHILOSOPHIES IS TO CREATE A FINANCIAL PLAN. THIS WILL
ANYWAY PREVENT STRESS ABOUT FINANCINGS ANYTHING
AND WILL MAKE EVERYBODY READY FOR URGENT
NECESSITIES LIKE HOSPITALIZATION REQUIREMENTS OR
ANY ACCIDENTS THAT REQUIRE IMMEDIATE FINANCIAL
CONSIDERATION. THESE ARE THE FOLLOWING BASIC
INPUTS WHICH ARE ESSENTIAL:
• PLAN A. REDUCE CONSUMPTION OF ALL ITEMS
ACROSS THE BOARD.
• PLAN B. MAINTAIN CONSUMPTION OF SOME
IMPORTANT ITEMS AND CUT CONSUMPTION ON
SOME UNECESSARY ITEMS.
• PLAN C. LOOK FOR ANOTHER SOURCE OF
INCOME TO AUGMENT REVENUES.
• PLAN D. SAVE AND INVEST TO BE ABLE TO GROW
YOUR FUNDS FASTER THAN INFLATION.
SOUND PRACTICES ABOUT MONEY
MANAGEMENT

1.SET UP AN EMERGENCY FUND.

• SET UP SEVERAL SMALLER SAVINGS GOALS,RATHER THAN
LARGE ONE.
2.LIST OF ALL DEBTS.
• MAKE A LIST OF ALL YOUR DEBTS AND THE AMOUNT OF
REQUIRED PAYMENTS.
3.CUT BACK ON UNNECESSARY SPENDING.
• NEW PURCHASES MAYBE UNNECESSARY, HENCE TRY TO
DELAY BUYING.
4.PAY OFF CREDIT CARD/DEBTS.
• PAY SOME AMOUNT MONTHLY TO KEEP YOUR RECORD
CLEAN.
5.APPLY FOR A CREDIT LINEFOR EMERGENCY USE.
• APPLY FOR A CREDIT LINE WITH YOUR BANK FOR ACCESS
TO CASH ONLY DURING EMERGENCIES.
6.TALK TO A FINANCIAL ADIVISER/ADVISOR.
• IF YOU ARE UNABLE TO MAKE PAYMENTS, LET THEM KNOW
YOUR SITUATION.
7.MONITOR ALL YOUR ACCOUNTS CASH FLOW.
• MONITOR YOUR BANK ACCOUNTS, INVESTMENT AND
RETIREMENT ACCOUNTS AND TRACK THE VALUE OF YOUR
STOCKS OR MUTUAL FUNDS.
8.TRUST THAT THINGS WILL WORK OUT IN TIME.
• DO NOT PANIC.TRUST THAT YOU HAVE RESOURCES AROUND
YOU THAT WILL HELP YOU FIND A WAY TO KEEP YOUR
FINANCES IN ORDER.
WHY IS PHILOSOPHY OF MONEY
MANAGEMENT IMPORTANT?
• IF YOU HAVE A HEALTHY PHILOSOPHY ABOUT MONEY, ONE
THAT TREATS MONEY AS A TOOL AND NOT AS AN END
GOAL, YOUR MORE LIKELY TO COME OUT ON THE OTHER
SIDE WITH MONEY IN YOUR BANK ACCOUNT AND A
HEALTHIER APPROACH TO EARNING, GIVING AND
SPENDING YOUR MONEY.