Overview on Money Management
                     Overview on Money 
Management
Introduction
• Money management is the process of tracking 
expenses, investing, budgeting, banking, and 
assessing tax liabilities; it is also called investment 
management. 
Source: cleartax.in 2
Strategic technique
• Money management is a strategic technique to 
deliver the highest interest-output value for any 
amount spent on making money.
Source: cleartax.in 3
Idea behind Money 
Management
• It is a natural human tendency to spend money to 
fulfil the cravings regardless of whether they can be 
justifiably included in a budget. 
• The idea of money management techniques was 
developed to reduce the amount that individuals, 
firms, and institutions spend on items that do not add 
any significant value to their standard of living, long-
term portfolios, and assets.
Source: cleartax.in 4
Understanding Money 
Management
• Money management is a broad concept that 
encompasses and integrates resources and solutions 
around the investment industry as a whole. 
Source: cleartax.in 5
Understanding Money 
Management Cont.
• When investors increase their net worth, they often 
frequently pursue qualified money management 
advice from financial advisors. 
• Generally, financial advisors are affiliated with private 
banking and investment services, offering resources 
for holistic money management programs that could 
include estate planning, retirement, and more.
Source: cleartax.in 6
Frugality by Warren 
Buffet
• Avoid any expenses which appeal to vanity or 
snobbery
• Often use the most cost-effective option to set small 
thresholds for consistency variation, if any.
• Favour interest-bearing spending rather than all 
others
• Set the expected benefits of any desired expenditure 
using the plus/minus/nil canon to the standard living-
value system.
Source: cleartax.in 7
Money Management in 
Personal Finance
• In personal finance, money management covers 
budgeting, spending, and saving (investing). 
• Money management can be proactive with periodic or 
regular financial planning. It can also be reactive to 
specific events without intuitive planning in advance.
Source: corporatefinanceinstitute.com 8
Money Management in 
Corporate Finance
• Similar to personal finance, money management for 
corporate finance also includes planning and 
budgeting. However, the process of budgeting is quite 
different.
Source: corporatefinanceinstitute.com 9
Money Management in 
Financial Markets
• In financial markets, money management also refers 
to investment management or portfolio management. 
Investment companies manage a pool of capital from 
their individual and institutional clients.
Source: corporatefinanceinstitute.com 1
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