The document provides guidance on how to wisely manage personal finances. It recommends creating a detailed financial plan, avoiding impulsive purchases, keeping records of all finances, consulting debt solution agencies if needed, being content with one's current financial situation, and managing spending based on income to ensure financial security.

1. Managing Finance
OBJECTIVES
THE FINANCIAL MANAGEMENT IS GENERALLY CONCERNED WITH
ALLOCATION AND CONTROL OF FINANCIAL RESOURCES OF A CONCERN. THE
OBJECTIVES CAN BE:
•ENSURE SAFETY ON INVESTMENT (FUNDS SHOULD BE INVESTED IN SAFE
VENTURES).
•ENSURE OPTIMUM FUNDS UTILIZATION.
•ENSURE REGULAR AND ADEQUATE SUPPLY OF FUNDS TO THE CONCERN.

2. Training Methods:
Presentation Flow :
Ice breaker
Module / Presentation Proper
Closing

3. Module
What is financial management?
Financial Management means planning,
organizing, directing and controlling the financial
activities such as procurement and utilization of
funds of the enterprise. It means applying
general management principles to financial
resources of the enterprise.

4. What are the goals of Financial Management?
The financial management has to take three
important decision (i) Investment decision i.e.,
where to invest fund and in what amount, (ii)
Financing decision i.e., from where to raise funds
and in what amount, and (iii) Dividend i.e., how
much to pay dividend and how much to retain for
future expansion. In order to make these decisions
the management must have a clear understanding of
the objective sought to be achieved. It is generally
agreed that the financial objective of the firm should
be maximization of owner's economic welfare.

5. Functions of Financial Management
1. Estimation of capital requirements:
A finance manager has to make estimation
with regards to capital requirements of the
company. This will depend upon expected costs
and profits and future programs and policies of a
concern. Estimations have to be made in an
adequate manner which increases earning capacity
of enterprise.

6. 2. Determination of capital composition:
Once the estimation have been made, the
capital structure have to be decided. This
involves short- term and long- term debt equity
analysis. This will depend upon the proportion of
equity capital a company is possessing and
additional funds which have to be raised from
outside parties.

7. 3. Choice of sources of funds:
For additional funds to be procured, a
company has many choices like:
Loans to be taken from banks and financial
institutions
Public deposits to be drawn like in form of
bonds.
Issue of shares and debentures

8. 4. Investment of funds:
The finance manager has to decide to allocate
funds into profitable ventures so that there is
safety on investment and regular returns is
possible

9. 5. Management of cash
Finance manager has to make decisions with
regards to cash management. Cash is required
for many purposes like payment of wages and
salaries, payment of electricity and water bills,
payment to creditors, meeting current liabilities,
maintenance of enough stock, purchase of raw
materials, etc.

10. 6. Financial controls
The finance manager has not only to plan,
procure and utilize the funds but he also has to
exercise control over finances. This can be done
through many techniques like ratio analysis,
financial forecasting, cost and profit control,
etc.

11. How to manage your finance wisely?
In this tough economy, it is just right that we learn
how to handle our hard earned income wisely in
order to prepare us for the worst and allow us to
enjoy whatever financial privileges we have at the
moment.
The following are some ways that will guide all
your spending motives:

12. Make a detailed financial plan
Knowing where your money should go is the
best move you can undertake at this point of
time, especially if the flow of income coming your
way is not sufficient for all your expenditures.
Learn how to prioritize your needs from your
wants and for sure you won’t be trapped with
various loans. When you make a list of all your
expenses, stick to the budget you have set aside

13. Avoid impulsive buying
To avoid making unnecessary purchases, we
must avoid going to malls, especially when we knew
that we are on a tight budget. It doesn’t mean that
having a credit card gives you every reason to splurge
on anything you want. Remember all these credit
purchases made will soon be collected at the end of
the month and you might be surprised that your next
paycheck will be allotted only for your credit
payments.

14. Keep records of your finances
A highly organized individual must keep a
complete record of all his/her expenditures as
well as any savings made to assess your financial
capability. It would be a good idea to keep all
those receipts for future references and record
keeping purposes. Once you complete your total
expenditures, you can now weigh now your
overall financial standing and help you come up
with a better financial plan next time.

15. Consult a debt solution agency
If you are facing a huge financial
obligation and don’t know where to start right, it
would be appropriate to seek the advise of a debt
solution agency or any financial advisor. There
are a lot of these financial organizations who
offer their expertise and services to help you
come up with a concrete action

16. Be contented of what you have
Adopting a positive outlook in life and a
feeling of pure contentment to whatever you have
at the moment will surely help you manage your
income wisely. Don’t aspire for more than what
you can actually acquire. Be realistic as to what
extent your wage can bring to you.

17. Closing
“There is no exact formula when it comes to proper
handling of our finances. Some of us fairly
manage to make both ends meet even without a
financial plan to guide them, but others who want
to feel more secured and directed in their
spending, resort in making a financial list on how
they will spend every penny earned.”
-Nuguid