Personal Money Management

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People adopt or depict multiple attitudes towards money management. We may categorize them into four styles – Miser, Moderate, Lavish, and Generous. Moderate and generous life styles are positive or constructive while miser and lavish life styles are negative or destructive. Moderation and generosity promotes stability and growth, while misery or lavishness promotes volatility and decline. A moderate person spends according to available means and maintains cash reserves, generous person spends on others and maintains moral courage, miser spends only on inevitable needs, and lavish spends according to lust/brain impulse. A better Money Management gives stability to individuals during some money crises and growth during normal time. In addition, the Appropriate utilization of money is vital aspect of comfortable life-pattern. The analysis provides a few practical-rational guidelines on Effective Liquidity Use.

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