Financial Management: is the process of planning, organizing, controlling and monitoring financial resources with a view to achieve one’s goals and objectives

The process includes four distinct steps, as follows:

• Information gathering (i.e., life goals, assets, liabilities, cash inflows and outflows, investment preferences, etc.) and analysis

• Plan development; aligning resources to short- and long-term goals

• Plan implementation

• Plan monitoring, periodic review and adjustment

Foundation principles of Finance

• Organize Your Finances

• Spend Less Than You Earn

• Put Your Money to Work

• Limit Debt to Income-Producing Assets

• Continuously Educate Yourself

• Understand Risk

• Diversification Is Not Just for Investments

• Maximize Your Employment Benefits

• Comply with Tax obligations

• Plan for the Unexpected (risk management)

Elements of Financial Management

Economic considerations

• Insurance

• Financial budgeting

• Investments appraisal

• Local and foreign obligations

• Tax matters

• Income management (Liquid assets-cash)

• Retirement planning

The Financial Planning Process

Benefits and impact of financial planning

• Financial Planning helps you take a 'big picture' look at your financial position

• It guides you to examine your current financial status and determine objectives.

• It helps in devising a strategy or plan for how you can meet your goals given your current situation and future plans.

• It also identifies weaknesses and recommends improvements.

• It puts in place the risk management system to meet uncertainties of life through efficient Retirement Planning, Insurance Planning, Tax Planning and Estate planning

• It helps you prepare for immediate and future needs or unexpected life events

How can we achieve Savings, reduce expenses, multiply Income Sources?

• Tackle High-Interest Debt First

• Cut Down Your Biggest Expenses

• Start a Side Hustle (business)

• Keep Your Budget Lean

• Eliminate or reduce unhelpful social habits

• Cost reduction