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Money Management.
Money Management is the process of checkmating or tracking how one's money is being spent in a way to achieve targeted goals such as yield in investment, savings for retirement and saving for unforseen circumstances among others.
Money Management helps an individual, firm or corporate body to draw up a scale of preference on their expenditure ranging from the vital ones to the last ones.Money management can be done daily, monthly, weekly or yearly,without money management a firm or individual cannot achieve its targeted goals.
Case study of money management
If firm A has yearly profit of 2000000 million naira and allocates as follows
Ploughbackprofit(retained earnings)=500000naira
Machine maintenance=500000naira
Expansion=500000naira
Unforseen circumstances=500000naira with this money management the manager cannot just make a demand of ostentatious asset like a car of 2000000 but rather it has to be planned since all the profit are being made into good use.
Future plan on my money management
*Setting up savings account for my kids
*Setting up a retirement savings account
*Buying shares in a well reputable firm
*Investing in real estate
Portfolio management
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Firstly portfolio in finance is all about diversification of risk which means reduction of risk in a sense that one should not invest into one project with his/her funds but invest or diversify into 3 or more projects or investments because when there is a loss in one others may come out with gain but not in the case of investing in one particular project in which when there is a loss you loose all your funds.
Therefore portfolio management in a layman understanding is how you manage your investment in the midst of risks by diversification,that is spreading out your investment into three different projects or more inorder to achieve set goals such as capital growth, diversification of risks etc.
In portfolio management you make use of the swot analysis of each project by weighing their strength, weakness,opportunity and threat.In portfolio management the managers goal is to maximize the return of the investment within the right level of risk exposure.
Future plan on my portfolio management.
I hope to avoid and cut unnecessary wants inorder to invest in projects that will yield greater profit.
Conclusion
A very special thanks to professor @stream4u for this great lectures you have imbibed in us inorder for us to read further to widen our knowledge.
Kindly remove the contents from the first homework task which you posted outside of Steemit Crypto Academy Community or else it will be detected as a duplicate post in different locations.
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Hi @nikoyana
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 7.
Your Homework task 7 verification has been done by @Stream4u, hope you have enjoyed and learned something new in the 7th course.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
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Yes I have learnt a lot of lesson and I hope to do better in my next assignment
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Gud day prof my assignment for week 7 has not been curated.
Cc :
@steemcurator01
@steemcurator02
@steemcurator03
@steemcurator05
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@steemcurator02 my assignment for week 7 has not yet been curatefthanks
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