![money-management-habit.jpg](https://cdn.steemitimages.com/DQmRvs8UmAF8gFoxLo95PSZuLm746fq7Sv57CHXykr3d5j2/money-management-habit.jpg)[source](https://akinfemionadele.com/2019/01/16/the-money-management-habit-you-must-adopt-in-2019/amp/) Money management is basically referred to as a methodical manner in which money expenditure is critically monitored and also has everything to do with evaluation of expenses which includes major or minor budgets, investment as well as task payment evaluation. #### My Future plans on Money Management As individuals, we all have various strategies or approaches to solving certain problems, and I would like to share a few of my approaches step by step. #### 1. Expenses regulations :- Earning from one paycheck to another and still realising so little to yourself at the end of the month, calls for serious concerns, and also shows one living above his/her means. Take for instance, my last two jobs was somewhat frustrating to me, though I earned monthly, not a single dime is left before the next payment, and this happened for months until I stopped the job. Then later realized I wasn't careful enough with the inflow of money and expenditure. Consequently, I had to categorically make a budget of how money coming in are been spent, thereby classifying, wants from needs, for example avoidable and non avoidable expenses, as well as some cash that had to be kept or saved ahead of unplanned circumstances, like illness, or probably if my car gets a fault out of the blues or any other Emergencies. And that way I was on top of my game. #### 2. A Balance Sheet :- Ensuring to have a balanced sheet, sure helps you to know and carefully align what you owe from what you own. This process is a really crucial one that will move your finances to the next level. I would have to make a list of my various investments, as well as all my assets, bank loans etc. Bearing in mind that the value of money I owe shows the sum of liabilities I've incurred over time, then subtraction of liabilities from assets, show me my Networth, and this is what a balance sheet helps me achieve. And also keep in my as soon as incurred loans are paid, this also gives a boost or I'd would say leads to the rise of my Networth. ![cash-mgmt-640-1559764028.jpg](https://cdn.steemitimages.com/DQmQ4XvHZcAcLZUdB21NGERAybqy2ggaSxUEh4VChRkiEgu/cash-mgmt-640-1559764028.jpg)[source](https://www.gfmag.com/magazine/june-2019/innovators-2019-cash-management) #### 3. Managing money:- Nothing really difficult is required to achieve such feet, and in order to achieve this, a great deal of "discipline" is required. Imagine having an Emergency like illness or your car broke down on the way with a serious mechanical issue, and you've got no money to respond to this but rather reach out to a friend to lend you some money and that wasn't possible, you then tried to borrow some cash through other possible means to solve this imminent problem, then such becomes a liability, like I said earlier. . Such cases can be avoided to a great deal, if one is disciplined in personal savings. Consistency in saving money, saves one from a great deal of trouble, emergencies, and helps one avoid debt traps. #### Portfolio Management ![5e2fc26aac279f62c19255d1_The importance of Portfolio Management-1.png](https://cdn.steemitimages.com/DQmcnWetqi3Mi1sBA7PoMvL1H4Dc9WWXSgbCNEPRvtqEatS/5e2fc26aac279f62c19255d1_The%20importance%20of%20Portfolio%20Management-1.png)[source](https://www.capitalvia.com/blog/why-is-it-necessary-to-balance-your-portfolio) Portfolio Management is referred to as a strategic and skillful method of managing investment portfolio of assets in other to maximize investor's wealth. #### Types of Portfolio Management In the world of portfolio management, there are certain types involved, which I would briefly discuss. #### 1. Passive Portfolio Management:- This solely involve the Current trend of the market, in which portfolio managers concerns themselves with fixed portfolio alignment. #### 2. Active Portfolio Management:- In this process, Portfolio managers sought to earn maximum returns for an investor by actively participating in trading of securites. #### 3. Non-Discretional Portfolio Management :- In this type of Portfolio management, investors are freely given advice by portfolio managers and the investors have the free will to either reject or accept it. #### 4. Discretional Portfolio Management :- This process involves the portfolio managers specifically recieving instructions from clients on how exactly they want their investment to go, and the portfolio manager carefully looks after such investments as well as documentation and other needs as regards to the investments. #### Future plan of My Portfolio Management #### Setting Goals. In order to plan for the future, one needs to have a critical and analytical view of current position the investors is and what they plan to achieve in the nearest future. And to this regards, future goals have to be properly documented and meant to be used as a yardstick to achieving the future goals of the investor. #### Defining Objectives It is quite necessary to be able to map out the risk ratio an investor can contain, the state of unpredictability the client can withstand, and this will help to sharpen a better portfolio strategy. #### Conclusion in order to achieve the right results, discipline, consistency are basic ingredients, and the future can only brighter by the day. Cheers