Money management is a difficult task for many people. It is common to see people struggling with additional expenses, which pop up especially towards the end of the month. Then they have to wait for the salary to be credited so that the financial crisis is stabilized. It is a common practice to see people taking loans to meet various expenses, when they run out of money. Therefore, the next month onwards your salary automatically goes into repayment, interest, etc. Here comes the need for a money management executive.
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Deduction in salary
Loans are indeed a great help during an immediate financial need. It could be an accident or a family function; good or bad the event, you need money to deal with it. This probably may cut money from your salary. The salary deductions from your account are for the following:
- Educational loans
- Debts from credit cards
- Unexpected events in life
If you do not manage money flow, even with so much of debts, you are surely going to become bankrupt soon.
Financial issues that go out of your control could even coil up and end up in bankruptcy. Money management executive would use only simple techniques, which even you could follow.
Kevin Hawhan, from the online payday loan lender Simplepayday.co.uk thinks that practice makes perfect when it comes to managing your finances and money.
“You just need to practice this simple process of managing money. Inconsistent behaviour is indeed a curse to money management. No weekend mishaps, or Saturday night cash dumps from the cashpoint.”
“You would be in a safe and comfortable zone of finance, by employing a series of sound tips for money management. This would ensure you comfort on financial aspects in future as well.”
Let’s face the reality
Everyone should develop money management skills in life. MSN money conducted a survey in 2007 about finance and consumer debts management. According to this survey, an American household bears consumer debts accounting to $8,000 on an average. Poor money management is directly linked to high rate of consumer debts. This creates difficult times for the whole family.
Personal money management would start by creating a budget for family income. Budgeting is effective in studying cash flow in and out, which helps you to analyse your present financial situation.
Most people are troubled with debts and needs a money management executive to deal with finance. Proper financial education is substantial in understanding the working of consumer debts. National financial advisors as well as credit counsellors could help you in adverse situations.
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How to become a money manager
Money managers or investment managers help you in spending and investing your hard-earned money wisely and help you to set goals that can give you fruitful results in future. A money manager is also expected to keep in touch with his clients on a regular basis and provide updates on their client’s investments and its status. A study conducted by the website indeed.com found that, on an average, a money manager takes home a salary of $72000 per year. Now, that’s a handsome amount. So, what are the steps to become a daily money manager? In this article, we will discuss in detail on how to be a money manager and the skills you need to acquire for it.
To take up the career of a money manager, you need to acquire a degree in finance. MBA in the same stream will be an added advantage, as many employers prefer aspirants with an MBA. A degree and MBA in finance will get you acquainted with investment concepts and banking affairs.
Certifications can always boost your career and the certification program of the Certified Financial Planner Board of Standards is considered worthwhile. A bachelor’s degree and a minimum work experience of three years make you eligible to enrol for this program. The certification exam includes topics, which test your risk management ability, financial management process, retirement process, emergency fund reserves and liability. Once you become a certified professional, you become a favourite with the employers as your portfolio management skills are tested and certified.
Attain key skills
Acquiring key skills in analytics is very important to become a successful money manager. Acquiring a degree in finance will not suffice for this. You only learn the basics in investments and money management with the degree program. Industry exposure is the key to develop your skills. So, if possible do your internship in a reputed firm, as this will be an added advantage. You are also expected to improve your communication skills when you deal with your clients. Keep in mind that, most of your clients may be new to stocks and investments field and you should be able to make clear all the doubts that your client may ask.
Hope the tips above helped you in understanding the various aspects of becoming a money manager. A good money manager is also a daily money manager at home. Start spending your money wisely and let this start from your home. Only then, you can successfully manage the money of your valuable clients.