Money management involves tracking spending, budgeting, savings, and investment to control cash flow and meet daily, short-term, and long-term financial goals. Key aspects of money management include maintaining a budget to analyze income and spending, determining immediate and long-term financial goals, analyzing spending regularly, and revising the budget periodically. Effective money management follows a cycle of planning and budgeting, allocation of resources, operation and monitoring, and evaluation and reporting.

1. MONEY MANAGEMENT
Sivasangari
shanmugam

2. MONEY
 Money is the medium of exchange used to buy good and services.
 A measure of wealth.
 Asset.
 There are several forms of money:
 Currency
 Coins
 Debit Cards
 Check

3. FORMS OF MONEY

4. MONEY MANAGEMENT
 Money management is spending wisely, meeting your daily needs and
wants as well as saving for future, investing in right mutual fund and
policies to saving for emergency and future expenses.
 Control of cash flow.
 Called investment management.

5. MONEY
MANAGEMENT
Passive
income
Tracking
spending
Budgeting
Savings
Investment
Credit

6. OBJECTIVES
Fulfil working
capital
requirements
Planning
capital
expenditure
Handling
unorganized
cost
Initiates
investment
Better
utilization
of fund
Avoiding the
insolvency

7. MONEY MANAGEMENT SKILLS
Maintain
a budget
Determine
the financial
goal
Revising
the budget
Analyze
the
spending

8. MAINTAIN A BUDGET:
 A wise way to start managing your money is to make your income and spending.
 It is used to analyse the income and where you spend.
DETERMINE THE FINANCIAL GOAL:
 Can be two types,
1. Immediate Financial goal
2. Long range Financial goal
1. Immediate:
 The money you want for daily living.
 Include :Paying off your rent, utilities, food, medical expenses.
2. Long range:
 That means how you want you spend the money in future.
 Include :Retirement savings, life insurance.

9. ANALYSE THE SPENDING:
 This will help you keep track of the necessary spending and cut down on the
necessary ones.
REVISING THE BUDGET:
 Revise the budget every two months depending upon your priority goals.
 If you get promotion, increase in discretionary spending is possible.

10. FINANCIAL MANAGEMENT CYCLE
Resources
Allocation
Operating and
Monitoring
Evaluation and
Reporting
Planning and
Budgeting

11. SCOPE
Financial
management
Financing decision Managing decision Dividend decision