What does Financial Management include?
We know what is financial management. It’s a personal decision in making wise choices about our cash. Financial management involves a lot of areas. Here, I list out 5 of the most important areas that you should know.
These are the main areas you should concentrate because it is these areas that we either mismanaged our money, or it will enable money to work for us.
The following are the key areas that you should look at:
Cash flow management
This involves assessing your current net financial net worth (what you own minus what you owe). This should generally tell you whether you are on your way to financial freedom or financial disaster.
In short, most financial experts would advise you to keep a high savings and this should be your MAIN PRIORITY in financial planning.
Investment planning
Once you have decided the amount of money you would like to save, you should consider where to put your savings with the aim of getting a higher returns than your normal savings account.
Forget the 2% p.a. interests for saving. You require something more sophisticated than that! At a minimum, you should go for fixed deposits. Otherwise, a good investment program will be nice.
Insurance planning
Insurance planning is required to in ensure that all your properties are protected and that your family members are well protected by having enough insurance coverage.
Tax planning
The topic of tax planning affects everyone who receives income, yet it is an area that is mainly forgotten or forgotten by most individuals. Therefore, this area involves strategies making the most under the local tax regulation in the area of your income, stocks, real estate, and property.
Retirement planning
You are not going to toil your whole life, are you? When old age symptoms begin to kick in or you have reached the mandatory retirement age, you will want to retire. There is no choice.
Therefore, having a retirement plan regardless of of your age is essential! You wouldn’t want to be forced to go back to work due to lack of money!
Estate planning
Having an estate plan or a will shall ensure that your wishes for the future are carried out. In addition, an estate plan or a will can supply financial protection for your family, ensure your property is preserved and keep off dispute among family members.
The above are just 5 of the many other financial decisions. It is important to take note of your above 5 becasue they are mainly responsible for your financial success or failure.
Comments
Comment from Chand
Time September 14, 2009 at 3:18 pm
1 What type of non-financial rewards could be offered by the WAPDA administrators to reinforce high employee performance?
• Non-financial rewards
2Types of non-financial reward
3Work/life balance
4Developing the individual
5creating a good work environment
6No financial incentives/rewards also include employee benefits such as vacation, health care, etc,
2What role does Equity theory play in the new system?
An individual will consider that he is treated fairly if he perceives the ratio of his inputs to his outcomes to be equivalent to those around him. Thus, all else being equal, it would be acceptable for a more senior colleague to receive higher compensation, since the value of his experience (an input) is higher. The way people base their experience with satisfaction for their job is to make comparisons with themselves to the people they work with. If an employee notices that another person is getting more recognition and rewards for their contributions, even when both have done the same amount and quality of work, it would persuade the employee to be dissatisfied. This dissatisfaction would result in the employee feeling underappreciated and perhaps worthless. This is in direct contrast with the idea of equity theory, the idea is to have the rewards (outcomes) be directly related with the quality and quantity of the employees contributions (inputs). If both employees were perhaps rewarded the same, it would help the workforce realize that the organization is fair, observant, and appreciative.
Comment from Chand
Time September 17, 2009 at 4:06 am
To enhance the credibility of an institution or organization its employees should be granted rewards remunerations and promotions according to the criteria set forth by the top level management. No doubt financial benefits or rewards could play an effective role to raise employee’s performance.
As WAPDA adopted same kind of policy to upraise the employee performance in 1990. Whatever results obtained it is not subject of discussion. Our focus is on non-financial rewards to enhance high employee performance. In my opinion;
Certificates of appreciation should be given to low level employees. These can enforce the employs performance.
Bonus leaves have their own importance. An employee should be given bonus leave if he performed well during the specific time period.
Special goals should be set for the each employee. An award should be given to him after achieving target
Comment from MrZ
Time September 14, 2009 at 2:00 pm
The problem is juror tampering. If you have a pool of professional jurors, regardless of the size, the names will be out there. Further, if you increase the size ad infinitum in order to minimize these risks, you will wind up with essentially the same system as we have now but people get paid to do it.
However, the biggest problem is that it would likely be cost prohibitive. Think of the manpower required for that: people to hire candidates (you can bet this would be a high demand job), people to screen those candidates, people to then do the continuing background checks, people to keep tabs on where the jurors are and what they are doing when they getting ready to hear a case. The list goes on.