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Personal Finance Tips : Financial Management Goals
Poziom:
Temat: Biznes
This is financial adviser Patrick Munro, talking
about the goal of financial management. The
goal of financial management should be two
fold. One is to enhance rate of return, the
other is to maintain a high level of safety
in all instances. Sometimes those two goals
go in direct conflict with each other. Because,
many times it is said, that the higher return
requires a higher risk for you to lose principal.
And as evidence, by this many people would
put their money into a business. Businesses
have a very high rate of not succeeding going
forward. So it's important when you look at
that, if you run a business, and you do a
great job of it, you can have a wonderful
lifestyle as a result of that. If you don't
have a business, and you just put your money
into a savings account, be prepared to have
a very low rate of return. So always be mindful
of those two hallmarks, of the goal for financial
management, is to try and achieve the best
rate of return, but have the highest level
of safety going forward. This is Patrick Munro,
talking about the goals for financial management.
