FINA 260 Lecture Notes - Lecture 5: Money Market Account, Personal Financial Management, Electronic Funds Transfer
Document Summary
Manage your cash and understand why you need liquid assets. Choose from among the different types of financial institutions that provide cash. Compare the rates on the different liquid investment alternatives. Transfer funds electronically & understand how electronic funds transfers (efts) work. Liquid assets are a necessity of personal financial management. W/o liquid funds, you might have to compromise your long-term investments to cover unexpected expenses. You could ruin your financial plan if you don"t manage liquid funds effectively. Cash management - the management of cash and near cash (liquid) assets. Making choices from among alternatives, maintaining and managing the results of those choices. Liquid assets - cash & investments that can easily be converted into cash. Low risk and low return but the more cash you have, the more you"re tempted to spend. Have savings automatically deducted from your paycheck - pay yourself first. Automatic savings are not in liquid reservoir therefore less likely to spend that money.
