Money management is an essential aspect of running a business. Just talk to serial entrepreneur and success story Zalman Silber, who, after founding multiple businesses, is going into the money management field himself. After all, who better to teach such a subject than one who has successfully practiced it for years with his very own funds?
After first founding a business, everyday finances are the next most critical component of a successful operation. Constructing supply chains, sustaining inventories, attracting and maintaining the customer base – these are primary concerns, it’s true, but closely on their heels is the quotidian concern of cash flow and working capital.
To be a Zalman Silber, one will need a lot of skills, not the least of which is effective money management. On an individual basis, money management refers to such tasks as budgeting, handling taxes, and monitoring investments – all performed as efficiently as possible to yield the highest returns. For a corporate entity, money management often means cutting costs and getting rid of redundancy.
Money management is a term that is found under many circumstances, and believe it or not it is even something many professional gamblers talk about – and even then for some it simply refers to a betting system while for others it means something more akin to the kinds of practices found in the business world. That’s why it is often necessary to employ professional money managers, for theories abound and it can be hard for a layman to know which course of action is best.
But why is such a thing even necessary? After all, if you were a multi-millionaire, say with ninety million in cash, couldn’t you just park the money in the bank and live quite happily for the rest of your life?
Of course you can. But you may not want to – and it’s not simply a matter of greed, either. For money actually depreciates over time; the value or purchasing power of money is practically guaranteed to drop. Prices only go up, not down, in the main, over the long-term. Yes, the price of obsolete technology goes down, generally speaking, but that’s a special case, of which there are many but not nearly as many as to countermand the fact that for the overwhelming vast majority of the really vital things that could be bought in the world, prices tend to only go up. Housing. Transportation. Food. Education. Medical services. And more.
Much, much more. So money management is necessary if you want you money to keep up with inflation – the phenomenon where the same thing costs more and more – if not outright beat it. And one sure way of staying ahead of inflation is to just increase your money. Become wealthier.
Getting rich is one thing. Staying rich almost calls for getting even richer. And that’s where a good money manager will help.
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