What is Money Management?

Money management is the technique of finding out where you are spending your money and outlining a structured plan for where you want it to go in the future. It is also a technique used to get the maximum interest yield from your investment money.

1. Lay down financial goals: You need to lay down exact financial goals and the time period. Plans can be set apart into short-term, mid-term, and long-term. Analyze the amount that you need to save now to attain that goal.

2. Get organized: All the financial information should be in proper order to access them anytime you require without wasting time. A personal financial directory consisting of all the accounts and other financial obligations will help stay organized.

3. Keep track of expenses: Tracking your expenses for a few months will help sort out your needs and wants and facilitate you to lay down your budget.

4. Set a Budget: After investigating the spending and deciding what your wants are, you can set up a budget and try to stick to it.

5. Money-Saving: Try saving at least 10% of your monthly earnings. Depending on your financial goals, you can decide to keep more.

 

Where To Place Your Savings?

Several options like Banks, Mutual Funds, Post Offices, real estate, and many others are available.

Investing in the Stock Market is a way to beat inflation.

Buying stocks of a company makes you become a part-owner of that company when you purchase stocks.

The chance to gain high returns on investment can be obtained upon Investing in the Equity Market.

The point to be noted here is that the risk is also high when the gain is more.