Money management aims at ensuring that a sufficient amount of money is raised from appropriate sources at the right time, and is invested in suitable projects which would increases the net returns of the firm and thereby the value of the firm. Thus, money management consists of raising required funds, investing the funds and managing the working capital.
If you owe a business or want to start with a business, remember that for the long and short-term requirements of the firm, an adequate amount of subsidy is to be arranged from different sources. While choosing the resources, they must match the reason for which the fund is required. For instance, the requirement for long-term finances like construction of building, attainment of equipment, etc., must be sought from long-term sources such as share capital, term loans, etc. Well, here I suggest that one need to also be aware of what is national wealth center and what sort of benefits, one can attain from it.
Once the resources are arranged, their asset may pose a serious problem. The basic decisive factor for investing in a meticulous asset is that it should grasp a positive net return, i.e., the profit should be more than the cost. In addition, if there are mutually exclusive projects with positive net returns, the project with the highest net return should be selected. For this purpose, different methods of capital budgeting are engaged.