Finance 101 doesn’t have to be difficult. Most people believe that cash management is limited to investment experts or accountants. Cash management need not be limited to just keeping tabs on your expenses, monitoring budget, and keeping your checking account balanced. Managing cash is not only for people with substantial income or corporations. It can be applied to a normal household income as well.

Cash management is simply maximizing the income potential of your funds by making a schedule of regular and estimated expenses and matching these with your investment terms. Like any corporation, we can make a simple cash management structure at home. The first step is determining how much you spend on a regular basis, maintaining cash for emergencies, and setting up a portion of your regular income that will be placed in either short term or long term investments. These way you make more investment income from your funds. Read the rest of this entry »