3 Basic Principles of Financial Management.

In a company, personal and family, must know and apply the basic principles of financial management before we can manage specifically and in more detail. The basic principles of financial management are very necessary and must be known. So that we are in managing finances both in a company and personally and in a family so that it runs well to get a welfare life properly.

Ignorance of financial management, there will be complexity, not knowing when to spend money and how much to spend it. Likewise for income when to get income that is in line with expenses. Because with ignorance in financial management there is no willingness to do it, namely making a financial management plan.

Unwillingness in making a financial management plan will result in bad results between income and expenditure in finance, namely the absence of a balance between the two. So it must be done by making a financial management plan so that there is a balance. Therefore, in making a financial management plan, you must know the 3 basic principles of financial management.

Here are 3 Basic Principles of Financial Management.

1. Make a Budget Plan.

Making a Budget Plan is useful as a guide or reference in your financial management. Do not you run finances, like a blind person, so that you will not know the direction or pattern and purpose of the journey in managing your finances. In making a Budget Plan we will make a Spending Plan, which is how much of our finances will be spent on these expenses. The expenditure plan consists of basic needs, debt repayment and additional needs. Additional needs must be differentiated into urgent or unnecessary, this is to avoid excessive spending. After creating a Shopping Plan you must create an Income Plan. Income Plan is determined from anywhere to fulfill the Expenditure Plan, you should make an Income Plan greater than 30 percent of the Expenditure Plan. 30 percent more income plan for your financial security or backup.

2. Determining Time.

After you have created a Budget Plan, you must determine the time and record it, to complete and carry out all the Budget Plans. Determine the right time and analyze it. Analyze your time that you have made so that we can find out which one should be done immediately or done with a delay. By knowing the delayed time so that it is easy to do the next time. So with that we can finish it regularly and on time, without any pressure on the predetermined time.

3. Performing Targets.

Doing targets is a matter of completing all things, namely spending on debt payments or other spending according to their needs, and getting income payments according to the time you have made and previously determined. Make it up ahead of time so you can think of something else to do next. Do what you can do immediately and don’t delay while you can immediately do it.

Also read : Tolerance or Compromise in work.

Also read : 3 Ways to Avoid Compromise.

Those are the 3 basic principles of financial management, do these three things to maintain a balance between expenses and income so that you get prosperity in your finances. Happy doing it and always prosperous.

Author: Goodjob.
Photo source: pexels.com