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Money management is the process of expense tracking, investing, budgeting, banking and evaluating taxes of one's money which is also called investment management.
Money management is a strategic technique to make money yield
the highest interest-output value for any amount spent. Spending money to satisfy cravings is a natural human phenomenon. The idea of money management techniques has been developed to reduce the amount that individuals, firms, and institutions spend on items that add no significant value to their living standards, long-term portfolios, and assets. Warren Buffett, in one of his documentaries, admonished prospective investors to embrace his highly esteemed "frugality" ideology. This involves making every financial transaction worth the expense:
1. avoid any expense that appeals to vanity or snobbery2. always go for the most cost-effective alternative 3. favor expenditures on interest-bearing items over all others4. establish the expected benefits of every desired expenditure using the canon of plus/minus/nil to the standard of living value system.