Discuss the principle of basic financial management.

Mcqs – the goal of the firm should be

Basic financial management includes four components. They are saving, borrowing, investing, savings, and investing. Budgeting refers to the planning of long-term stability. This involves determining income, expenses and prioritizing how money will be spent. People can create a safety net and build savings to cover unexpected costs. By investing, individuals can grow their wealth through the growth of stocks, bonds, mutual fund and other investments. Borrowing enables people to take advantage of opportunities if they don’t have enough in savings right away; however it is important not to borrow more than what you are able to realistically pay back. Individuals can attain greater financial security as well as better health by combining these four principles.

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