Crypto Academy Week 7- Homework Post for stream4u

Hello steemians !

I hope you are doing well. I hope everyone is fit and fine. I'm very happy to be a part of this community and also this lecture. In this post, I will share some of my overview of money management homework done for @stream4u.

money managment & portfolio managment.jpg

Money management:-

The importance of money management covers a wide range of professional knowledge, covering all things related to smart money management, whether it is budgeting, saving or investing in your personal wealth. Financial educators who design data-based courses in accordance with industry best practices aim to ensure that everyone participating in the program has a thorough understanding of fund management.

A rough understanding of money management will mention all aspects of managing personal finances, mention the knowledge required to make wise financial decisions, and discuss the balance of various options and many variables that will be used to plan for future unknown events. The idea of ​​developing a consistent plan that will maximize financial growth while minimizing risk. All of these are related to the importance of fund management. However, from the perspective of personal finance, please take a look at your own life. Governance refers to the difference between the master and the slave of money. Money management should not be taken lightly.

Future plan on your Money Management:-

Future planning for Money management seems easy but in real life scenario, it is more harder and confusing than earning money. Here I have discussed some steps for better money management.

1)Make sure your savings goal is Sane/ Smart.

After the dream phase is over, you want to clearly state your goals. They must be concrete, measurable, achievable, realistic, and understandable. For each goal, estimate how much it will cost, and see how much you have to set aside each month to achieve that goal.

2)Find ways to reduce costs/expenses.

If there is no way to earn extra income, then the money will come from here. The first step is to check your bank and credit card statements to see where your funds are going. Then get rid of unnecessary trash, you can eliminate or replace it.

3)Create a budget.

Rather than treating it as a disadvantage, think of your budget as a way for your expenditures to reflect your priorities and value. After all, marketing bombards us every day.

Portfolio Management.

Portfolio management involves selecting the types and combinations of investments such as stocks and bonds to meet specific investment goals, and then tracking and adjusting these investments over time.
Portfolio management must be able to measure the strengths, weaknesses, opportunities, and risks of the entire financial spectrum. Compensation must be considered, such as B. Debt-to-equity swap, domestic transfer to foreign capital and increase in deposits, and adjusting these investments over time.

Future plan on your Portfolio Management:-

here I have given some considerations below for the future plan on Portfolio management which will be effective in most of cases.

Policy statement :

The first step in the portfolio management process is to create a strategic statement. The policy statement states how much risk investors are willing to accept and what kind of risks. The goal is to understand and clarify investment objectives and restrictions as accurately as possible. The first thing a good financial planner has to do is to consider your short-term, medium-term, and long-term financial needs so that you can formulate a clear policy statement.

Investment strategy:

The second step is to assess the external financial and economic situation and put forward perspectives for future development. This assessment, together with the needs of investors (defined in the policy statement), determines the investment strategy. They should be monitored over a period of time and adjusted according to future expectations. This step also helps to establish a realistic investment.

Portfolio construction

The third step is to build an investment portfolio by implementing investment strategies and deciding how to allocate capital between geographic regions and asset classes. The main goal of building an investment portfolio is to meet the needs of investors with minimal risk. Investors can take different approaches. Work with the portfolio manager to create a portfolio. The traditional financial theory believes that investors can construct the best investment portfolio by focusing only on the risk and return characteristics of various stocks.

When was the last investment failed and Why? (those who have experienced this can provide views.

No , i didn't experienced any failed investment .

Conclusion.

In the end, Ill conclude that When traders understand the types of capital, large capital, medium capital and small capital, and know the risk and return levels of each type, they can make the best investment decision.

Special Thanks to,
@stream4u,
@steemitblog,
@steemcurator01,
@steemcurator02.

#stream4u-week7 #cryptoacademy #cryptomanagement #pakistan

Sort:  

Hi @yarhassan

Thank you for joining Steemit Crypto Academy and participated in the Homework Task 7.

Review Visit Level
Task Remark
Comment
Guidance, Feedback, Suggestions
Grade
Verification (Done, Hold)
First
Completed
Explain well, but we are in Crypto class and discussing on money management in trading and investment of cryptos. Here you could try to explain and show how we should manage money like what do we need to do and what not to do like this.
Try to explore subject as much as possible with examples but in simple term. No hurry and take own time, try to give own views, suggestions.
6
Done

Your Homework task 7 verification has been done by @Stream4u, hope you have enjoyed and learned something new in the 7th course.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy