The fact of life is that we all need to get ourselves engaged in fund management in different forms in our day to day livelihood. We manage funds at home, in clubs and even in social functions and celebrations.

In layman’s language fund management is the effort to manage the funds effectively keeping track of earning and expenditure. In general funds come in from smaller number of points whereas the point of sales become much higher in case of expenditure. Take an example of your home, where the fund comes into your house from your pay packet and that too once in a month. You need to respond to versatile needs of the house like rent, school fees of children, monthly grocery bills, electricity bills, telephone bills and many others.

If you want to draw a balance sheet, you will always find the income heads are limited and expenditure heads are innumerable and at times even unprecedented expenses increase your headache.

How the funds are managed. In one word, we need to optimize the funds. Say you find a deficit, you might postpone some of the expenses, which are not so urgent or you can even take a small amount of loan from somewhere, which can be paid with the next month’s salary. Fund management becomes most effective once you can calculate the expenses and incomes for a period of time. In general corporate houses prepare a budget for the whole year and then breaks it down to quarterly budgets and so on.

Even as an individual if you can apply such corporate style in your domestic management, you can really win.