"The business function concerned with profitability, expenses, cash and credit..."
The process of creating and managing a plan for spending and saving money.
Budgeting basics: Understanding what a budget is and how to create one that suits your needs and income.
Goal-setting: Identifying financial goals and creating a plan to achieve them.
Income management: Understanding the different sources of income, such as salary, rental income, freelance work, etc., and how to manage them.
Expense tracking: Keeping track of expenses, learning to distinguish between wants and needs, and identifying areas of overspending.
Debt management: Understanding different types of debt, such as credit card debts, loans, and mortgages, and strategies for paying them off.
Savings and investment: Developing a savings habit, understanding different investment options available, and choosing the right investment based on one's financial goals.
Insurance: Understanding the different types of insurances such as health, life, and disability insurance, and why having them is critical.
Taxes: Understanding various taxes such as income tax, property tax, and the importance of tax planning to save money.
Retirement planning: Understanding how to save for retirement, selecting the right retirement plans, and anticipating future expenses.
Understanding credit scores: What credit scores are, how they're calculated, how to improve them, and how to use them responsibly.
Emergency funds: Understanding the importance of having an emergency fund and creating one.
Homeownership and renting: Understanding the cost and responsibilities of owning a home and how to rent an affordable property.
Negotiation skills: Knowing how to negotiate credit card interest rates, bill payments, rent, and other expenses to save money.
Side hustles and passive income: Learning about ways to make money through passive income streams and side hustles.
Philanthropy and donations: Understanding the benefits of donating, both for the community and the donor's tax deduction.
Scams and frauds: Learning about common financial scams and protecting oneself from them.
Understanding institutions: Learning about financial institutions like banks, credit unions, and their products.
Cash flow management: Understanding cash flow, managing it effectively, and avoiding cash flow problems.
Understanding the economy: Understanding how macro and micro-economic factors impact personal finances.
Family financial planning: Creating a joint family budget, understanding children's educational planning, insurance planning with family dynamics in play.
Monthly Budgeting: This is one of the most common types of budgeting where an individual sets a specific amount of money to spend each month on essential expenses such as rent, bills, groceries, etc.
Yearly Budgeting: Yearly budgeting is a long-term financial planning process. By setting a spending limit for each significant expense category, such as housing, transportation, recreation, and taxes, it helps to ensure that you're not overspending within any given year.
Zero-Based Budgeting: Zero-based budgeting requires you to start each month with a clean slate. You must allocate all your earnings to a purpose each month, leaving no money unused.
Envelope Budgeting: This budgeting style is quite similar to the zero-based model. Here, you will allocate a fixed amount of cash to different spending categories and place the money in envelopes. With this, you can monitor your spending and ensure that you do not overspend on particular items.
50/30/20 Budgeting: With the 50/30/20 budget rule, you must allocate your after-tax income in the following ratios: 50% for needs, 30% for wants, and 20% for savings.
Reverse Budgeting: Reverse budgeting starts by putting aside a fixed amount of money into savings. After that, you can use the remaining money on your necessary expenses and discretionary purchases.
Rolling Budgeting: Rolling budgeting ensures that you always have a plan for your future earnings by looking forward to the next few months. You continually update your budgetary plans by incorporating actuals figures and estimated projections for the remaining months.
Priority-Based Budgeting: Priority-based budgeting requires you to identify your most significant financial goals and then allocate your income to align with them.
Event-Based Budgeting: Event-based budgeting is all about preparing for future expenses like weddings or vacations. You estimate the total cost of the event and then prepare to save towards it.
Cash-Based Budgeting: With cash-based budgeting, you do away with debit and credit cards and instead use cash only. This allows you to keep track of your spending better and avoid overspending.
"...maximizing the value of the firm for stockholders."
"...short- and long-term financial resources..."
"Financial managers (FM) are specialized professionals directly reporting to senior management, often the financial director (FD)."
"The function is seen as 'Staff', and not 'Line'."
"...to ensure the objectives of the enterprise are achieved."
"Profitability, expenses, cash and credit..."
"...so that the organization may have the means to carry out its objective as satisfactorily as possible."
"...to carry out its objective as satisfactorily as possible."
"The efficient acquisition and deployment of financial resources..."
"...stockholders."
"Profitability" is one of the key areas of concern in financial management.
"The financial director (FD)"
"...the business function concerned with profitability, expenses, cash and credit..."
"...to ensure the objectives of the enterprise are achieved."
"The business function concerned with... cash and credit..."
"...senior management"
"Expenses" are one of the key areas of concern in financial management.
"...efficient acquisition and deployment of both short- and long-term financial resources..."
"To ensure the objectives of the enterprise are achieved."