The journey to financial management starts with determining current financial situation. This will give you a platform to develop your financial goals, identify alternative courses of action, evaluate alternatives; consider life situation, personal values and economic factors, assess risks and time value of money (opportunity cost). Once this is done, you will be in the right position to create and implement your financial action plan. To attain precision, it is recommended that you review and revise the financial plan to attain an equilibrium.
In financial management, creativity when making decisions is vital for effective choices. The common courses of action from which to draw alternatives are: continuing the same course of action, expanding the current situation, changing the current situation or taking a new course of action.
These recommendations are suitable for both personal finance and management of finances for SMEs.