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Financial wellness for urban communities with Greg C. Cash.

Cash's Corner, Community, Current

Cash Wealth Management

financial

Part Two

by Gee C. Cash

Why Is Financial Planning Important?

     It is expected of people to control their finances and keep a record of their expenses. Sadly enough, a lot of people are controlled by their money. Decision making plays is an important role in our daily lives and can influence our choices especially when it relates to a financial activity.

     A spendthrift will always end up bankrupt because he or she fails to be accountable for his cash flow. Financial Planning ensures that there is a stable cash flow running in and out of your hands. You will not be able to make a detailed financial plan if you can’t account for the channel in which money comes in and goes out of your account.

     Documenting the outflow and inflow of funds will make you know how much was spent on expenses, how much was gained and how much is left to save or invest. Also, it allows you to consider your investment options and choose an ideal one which properly fits your aspirations and needs. If you are thinking of investing in the money markets, you should know it isn’t a long-term investment. 

     The money market is a low-risk investment that matures under a year. Hence, if you are a banker or an employer, the money market may not be the right investment for you due to its short-lived nature. Apparently, individuals are advised to open a money market account because they stand to receive better interest rates than on a savings account. With the availability of various money market funds, it is crucial for one to understand how the money market works before investing.

Steps To Take When Investing In the Money Market

1. Make a research to learn about money market funds.

2. Find out the advantages and disadvantages of the money market funds.

3. Check the historical statistics of the money market funds.

4. Get a brokerage firm to help you invest.

5. Get insights from your brokerage firm to track your investment.

     You should lookout for a renowned brokerage company or mutual fund company before investing in the market. Ensure that the brokerage firm is licensed and regulated. We advise that you go for a certified financial planner (CFP), which is a sign of credibility. Check the website of the brokerage firm to get more materials and tools to educate your-self. One can move on to get a credit report to see how marketable they are to the commercial markets. 

     It is important for you to run a research or review on your credit because banks and brokerage firms can check it to make decisions about you. Usually, the financial plan should have a retirement plan where it should outline the strategies in which you’ll use financial markets to derive your income after retirement. 

     However, a 401(k) could work. The 401(k) is usually financed by the employer, who gives liberty to his workers to save and invest part of their wages or remuneration before taxes are taken out of it. The 401(k) allows you to control the way your money is invested. If you are facing a selection headache in choosing the right investment to make, you may consider hiring a qualified portfolio manager to help you make investment decisions.

Cash's Corner, Current

Cash Wealth Management

Part One

by Gee C. Cash

What is a Financial Plan?   

  A financial plan encompasses the strategies an individual intends to fulfill in the long run and steps to achieve them.

Normally, a financial plan can be made without the aid of a financial planner; it can still be done without a financial consultant.

However, it is imperative that the plan must include areas as it relates to investment, financial control and financial security.

What is the scope of Financial Planning?

     In the business environment, the financial plan scrutinizes the business environment; identify the values, goals & objectives of the business.

It quantifies the business activity and resources to know if the business can achieve its laid-down objectives within a given time.

Also, individuals and young entrepreneurs can leverage financial planning to become financially secure, even up to their retirement age.

Asset Management

     An asset may include items that are considered useful and can produce value.

Examples of items are cars, investments in the money market, money invested in a 401K plan, buildings, equipment, and anything you consider valuable to you.

   In the financial sector, people are hired to manage investments on behalf of others; this is referred as asset management. It refers to the management of assets of the client. The objective of an asset manager is to make maximum returns (profit) from the client’s investments.

To be continue…