Yakub02
Banned
Financial management is the effective and efficient utilization of Financial resources with a view to attaining desired objectives both in short term and long term plan.
Personal financial management is the individual utilization of financial resources. Personal income of individual can be through monthly income , wages or profit from business activities.
Salary earner can manage their financial resources by having a regular and consistent savings. This savings should be in such a way that it must not be affected by any frivolity or unnecessary buying.
Salary earner can also engage in small business line online investment that will not clash with the time the person is using for his daily job routine.
Business persons can decide to ensure profit from the business is not affected by wrong decision making. the margin of the business should be reasonable at least 4%
The business owner can decide to be taking out the profit or be ploughing it back whichever is it there should be proper segregation between the initial capital of the business and the ploughed back profit. This will allow us to determine the growth of the business.
The working capital of the business should be known at every point in time. Ratios like Gross's profit/ sales ratio and acid test ratio should be estimated,
The need for effective personal financial management is very crucial in this present situation.
Personal financial management is the individual utilization of financial resources. Personal income of individual can be through monthly income , wages or profit from business activities.
Salary earner can manage their financial resources by having a regular and consistent savings. This savings should be in such a way that it must not be affected by any frivolity or unnecessary buying.
Salary earner can also engage in small business line online investment that will not clash with the time the person is using for his daily job routine.
Business persons can decide to ensure profit from the business is not affected by wrong decision making. the margin of the business should be reasonable at least 4%
The business owner can decide to be taking out the profit or be ploughing it back whichever is it there should be proper segregation between the initial capital of the business and the ploughed back profit. This will allow us to determine the growth of the business.
The working capital of the business should be known at every point in time. Ratios like Gross's profit/ sales ratio and acid test ratio should be estimated,
The need for effective personal financial management is very crucial in this present situation.
