What Is Finance ?

Are you one of those People who try to save their monthly income for the future but end up complaining of not having enough money for future. Don’t worry Mr. Shah was going through similar problem.
“To get Rich You have to be making Money while you are Asleep”-   David Bailey.
Yes! He was just like you, used to save from his monthly income and put all his money in FD of bank. His money from salary was either going in unwanted expenses or be resting in bank. He understood the need on managing his money and with our help he started with financial management. In a very minimal time, he could see his money being invested in right place and growing over the time while he was not even working to earn it. But what is this Money/Financial Management and why you should know it too? Let’s see how you can not only save your money but also grow without any efforts.
Finance is your money management and everything you do to increase your money by investing, borrowing, lending, etc. For instance, your money comes from different channels, and controlling is finance.
Let’s understand this much better, your money comes from different channels that can be coming from your salary, property (if any), money from someone whom you lent. This money coming to you needs to be managed. Understanding finance is important if you want to meet your income goals in a short term.
Usually, people spend their income first on their household expenses, and then a part of the income or the salary is saved for the future. You often keep your savings in the bank, where your money is resting. If you want to increase your finance that is your money, then you need to stop doing what you usually do. Yes! You heard it right. Your savings are just resting in the bank. Money that is not growing is not making you more money.
You can invest your money and grow your money without studying deeply about finance. By the end of this article, you will know exactly how you can grow your money and manage it well.
As you know now, what is finance, you must be curious about what is actually managing it. Finance management is money management that will help you to grow your money in a simple way. You need to understand why managing money is important.
Importance of Financial/Money Management.
1. Maximization of your Income:
Your salary Is one way you get your income but when you understand finance you will be able to earn income from different sources. You can invest your money in different channels and earn money without actually working for it. Read more about where you can invest your money to earn income further in this article.
2. Reach your long-term Income goals:
Everyone has their income goals in life. It can be short term, long term, and long term.By adopting money management, you can reach your income goals faster. You will be able to make more money and be settled early without much hassle. Your saving can be turned into an investment that will give you profit/interest on the investments you made.
3. Wealth Maximization:
Your wealth is your assets and when you maintain your money it becomes easy to build your wealth too. If you are a salaried person then it takes around 20 years on average to build wealth with good assets as your majority of income is your salaried income. However, you can build wealth and assets by having proper financial planning. Your gap between getting an asset in 20 years can reduce to 7-8 years.
4. Less Risk:
Managing your money allows you to understand the option for investments. You can invest your money in different asset to the risk you can bear. This way you can play a big game too and minimize risk where you cannot take it. Your money is broken down into certain amounts and invested in different sectors which will save you from big losses if any.
Money management is a skill. It is easy to understand but it is always better to let the expert do it for you. It is a complex process and Financial Manager really helps you do that without worrying about any. Their main objective is to grow your money. Apart from this, there are a few objectives explained below that will help you to know better.

  • Providing Security: One thing which is more important than your money is your life. Your money managers will first help you to get good suitable insurance for your life so that you don’t wander around in the market between thousand types of insurance plans. Insurance is also beneficial in your Income-tax Return and knowing this, your financial manager will be the best person to help you.

  • Making your money work for you: Passive income is the largest source when we say making money work for you. For instance, Your investment in the right direction will multiply your money without you even working for it. Which means your money grows even when you are sleeping. This is passive income. This right decision is taken by your financial manager

  • Reduce Uncertainty: Let’s face it, your savings will eventually end when you have an uncertain situation like a medical emergency of a family member or you yourself. However, when you start planning your income you will have certain well-planned money for these things. Medical Insurance could save you there. Here, your market research is not used and saves a lot of money and effort from your financial manager.

To know More about Financial Planning, Get in touch with our Experts.
Isn’t knowing about your money and ways to grow them, very useful? I am sure that you are now very eager to know more about the new trends and useful ways to start your Money Management. We will be coming up with another new piece of information where you will not only learn but also immediately implement towards your Income goal.Stay tuned for simple Money and Wealth management Information.

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