Finance Management

Finance Management
More often than not, we really don’t have problems with how money comes into our hands when it comes to managing domestic economy (i.e. money needed to take care of the home). Some are good in management, but even when you have been able to manage your domestic expenditure and you have money left or when you have been able to develop a system that allows money to come your way consistently, you can still mismanage it. It is not having or getting money that is the issue, it is our ability to manage it in a way that this same money will would reproduce itself with or without your effort. This is an important factor in personal 
finance development.
Many of us just see money as a legal tender, something that you need to be able to buy or sell and that’s it. That is why what is left of money after this primary function has been performed is wasted. This is one of the biggest financial mistakes our parents made when I was a kid. We were a middle class and things seem to be going on well financially back in the early 1990s. Money was not a problem because we had all that we want. Unfortunately my parent fails to manage their finances. They never thought of investing in the capital market or real estate. As a matter of fact they never made any plans for the future as far as money management is concern. Everything will be okay, nothing will happen they thought.
Then suddenly there was a scandal at my father’s place of work and he was sacked. That was about a year of my parents’ divorce. From that moment our financial situation took a turn for the worse. We had no money to fall back on. We had no money for tuition. The bills kept pilling up. In the end my father had to sell a lot of household properties just to buy food in the house. My brother and I were out of school for close to two years. It was our darkest hour as far as money matters is concern. And all these are because my parents fail to plan their finances. Everything money coming was spends on luxury and vain items. It the end we had to pay for it.
This is what mismanagement can cause. When we mismanage our finances we indirectly plan our suffering in the future. That is a fact. A lot of families out there have been torn apart due to money mismanagement. It doesn't matter how much you earn. Even if you win millions in a lottery, without sound money management you are setting a future of financial bankruptcy. For example Evelyn Adams: In 1985 and 1986, won the lottery equaling a total winning of $5.4 million. However, today she has no money. Winning the lottery isn't always a happy ending adventure. In her words she said winning the lottery isn't always what its crack up to be. Adam who won the New Jersey lottery not just ones but twice (1985-1986) to the tune of $5.4 million is no longer a millionaire. And there are many others.

Money can be utilized or can be wasted depending on who is handling it. When money is needed or keeps coming with the aim of doing work like business, execute a project or carryout an investment, it is referred to as fund. Ones you begin to see money as an instrument of doing a job or a tool for performing a duty or an investment that must always yields returns, then money ceases to be called money, but becomes fund, and as a matter of principle must be managed.

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