The human ability to manage money
Money management is an important and always relevant skill. However, don't confuse budgeting with simply saving money or recording your own spending. Indé talked to residents of Kazan about their relationship with money and approaches to budgeting.
Very often we can hear similar phrases about someone: “Everything is going great for him! He's doing great sales! ” In principle, it does not matter in what area a given person works and what he does. These can be different areas of activity: manufacturing, sales, financial activities, or educational activities. Could it be that he just knew how best to dispose of his funds?
What is money management?
Money management is a very important skill for a successful and independent person. Competently and correctly manage the team and the enterprise, manage your money, and, of course, manage yourself! We know this word very well and, of course, are accustomed to it, we very often pronounce it in dialogue, but do we know its meaning? What is money management and what is its essence?
It doesn't matter at what level you are running: whether you run a company, a car, a country, or a stream of funds. Each of us is a manager in life. It often happens that people do not see themselves as a manager. They easily disclaim responsibility for the result in their activities, but this is wrong. Very often they simply do not understand how to act and what the result should be.
Management is those actions that are aimed at achieving their goals along with the resources that a person has. All this can be called the achievement of the goal in practice.
Financial management – purposeful formation of the process of redistribution of financial resources between various subjects of the financial system and within them, activities to attract and efficiently use financial resources.
Financial management from the point of view of the general theory of management includes the main components: objects of management, subjects of management, forms, and methods of management activities.
It is worth remembering that it is possible to manage correctly when a goal is set, reasonable actions are formulated and there are resources that are necessary to achieve the goal. If the result differs from the specified one, a new control action is gradually developed, and exactly this amount of time until this result corresponds to the planned one.
Subjects of management
The subjects of management are special services, bodies, subdivisions of various management objects, called the financial apparatus.
At the national level, the financial management apparatus includes legislative and executive bodies. In the Russian Federation, these include the Federal Assembly, the President of the Russian Federation, the Government of the Russian Federation, the relevant federal executive authorities (the Ministry of Finance, the Federal Tax Service, the Federal Customs Service, and others).
At the level of the subjects of the state and the municipal level, the financial management apparatus includes the relevant bodies of the representative (for example, the legislative assembly of the subject) and executive power.
At the level of business entities, the financial management apparatus is determined by its organizational and legal form and constituent documents.
At the household level, the subjects of management are the households themselves
You can set an example for children and parents. The child is the subject, the mother is the controlled object. We go into the store with our child, then he saw the toy he liked: “buy it!” – and that's it! In this example, the child exerts pressure, we can say managerial influence. “Stop it, the whole room is full of toys!” – correct action, mom makes an action to get out of money management. Not bought a toy – not achieved result. Then the child begins to throw a tantrum (again, the impact). Mom, unable to bear it, still buys him a toy. Well, that's all, the goal has been achieved! Tears dry up immediately, and you can be happy with your result.
Everywhere there is its own external environment, due to which there is an influence on both the subject and the object, as well as the object and the subject is influenced by the external environment.
Money management scheme
Let's talk about finance. Man is a subject of management, and money is an object. And what remains? And the result remains! What would you like to do with the money? How can they be properly managed and what result can you eventually arrive at? Very often you can hear from people that their goal is profit and financial independence. But this cannot be called a goal, because the goal has its own clear criteria, they always have its own terms, they are qualitatively and in detail formed and quantitatively expressed.
Many people do not have their own clear goals, designed for specific time frames. They absolutely cannot imagine what resources they need to implement their plans.
If there is no clearly set goal, then the management process, with all the desire, is simply impossible to organize. It must be remembered that management begins with the setting of the very goal and task. How can you talk about good governance if most people do not have this most important first step?