The literal meaning of ‘Financial management’ refers to “the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organisation”. It is the specialised function directly associated with the top management.
Now the above sounds very technical but in reality, you are managing money every day. Money comes into your bank account and you decide on a day to day basis what you are going to spend this money on. Some people are good at this but more and more today this is a skill that people are losing. Having a supporting hand guiding you can be part of financial management.
Our starting point is always expenditure, looking at essentials, “nice to haves” and then luxuries. Now this part is different for everyone, but just understanding what you spend your money on is a great eye-opener. Once you have established the money you have spare to use for your future, it then needs to get to work. You work hard enough to earn it, so your money needs to work as hard for you.
Putting a plan together, which will change over the years, will allow you to start to see and understand what it is you are trying to achieve. As the value of your wealth starts to increase so will the decisions and the tax implications become more complicated, this where professional help may be required.
The literal meaning of ‘Financial management’ refers to “the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organisation”. It is the specialised function directly associated with the top management.
Now the above sounds very technical but in reality, you are managing money every day. Money comes into your bank account and you decide on a day to day basis what you are going to spend this money on. Some people are good at this but more and more today this is a skill that people are losing. Having a supporting hand guiding you can be part of financial management.
Our starting point is always expenditure, looking at essentials, “nice to haves” and then luxuries. Now this part is different for everyone, but just understanding what you spend your money on is a great eye-opener. Once you have established the money you have spare to use for your future, it then needs to get to work. You work hard enough to earn it, so your money needs to work as hard for you.
Putting a plan together, which will change over the years, will allow you to start to see and understand what it is you are trying to achieve. As the value of your wealth starts to increase so will the decisions and the tax implications become more complicated, this where professional help may be required.
We like to think of it as a jigsaw puzzle, putting the right ‘pieces’ in place.
