Money management

Money management

Money management is the process of managing money. It includes investment, budgeting, banking and taxes. It is also called investment management.

Money management is a strategic technique employed at making money yield the highest of interest-yielding value for any amount of it spent. Spending money to provide an answer to all cravings (regardless of whether they are justifiable or not to be included in budget basket) is a natural human phenomenon.

The idea of money management techniques is developed to plummet the amount individual, firm and institutions spends on items that add no significant value to its living standard, long-term portfolios and asset-basins. Warren Buffett, in one of his documentaries, admonished prospective investors to embrace his highly-esteemed "frugality" ideology. This is the basis of every sound money management formulas.

The following are powerful techniques that can be employed in making every expense made to be worth it:

• cutting your budget on social needs
• avoid any snob-appealing expense
• always go for the most cost-effective alternative (establishing small quality-variance bench-mark, if any)
• increase expenses more on interest bearing item than any other thing
  establish the expected benefits of every desired expense using the canon of plus/minus/nil to standard of living value system

.These techniques are investment-boosting and portfolio-multiplying{read more}.