Question

Cash management is routine, day-to-day administration of cash and near-cash resources by an individual or family. With this in mind, develop a cash management strategy that incorporates a variety of savings plans

Answer 1

Cash management strategies are stategies in order to manage the cash available with an individual or his family which will provide him with adequate liquidity and flexibility in his hands through proper management of cash. I will be preparing a cash management strategy by incorporation of various elements-

A.Starting to prepare the budget and track the budget so that all the the deviations regarding from actual expenditure to estimated expenditure are corrected regularly.

B. lowering of your expenditure is another important way of management of the cash because lowering of the expenditure leads to savings.

C. Decoupling of the expenditure from the income and when you get a raise in the salaries and payment then you should not increase your expenditure.

D. Elimination of the debt and working in towards all appropriate measures for lowering of the debt so that there will be adequate flexibility.

E. setting out of an emergency fund in order to manage with any kind of adverse economic scenario and job loss

F. Boosting of the credit scores and it will be helpful in maintaining with high credit worthiness

G. Creation of the personal endowment funds.