Steemit Crypto Academy Week 7: Homework Task @stream4u//Submitted by meymeyshops//28/03/2021

INTRODUCTION
This class is becoming more sweeter as the day goes by, in fact even as the saying, "the higher you climb, the cooler it becomes". At this stage making research, exploring on the task given is making more sense though somewhat tedious yet I am grateful to leverage on this platform. My name is Mercy Orji or @meymeyshops and am making my seventh entry below:

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MONEY MANAGEMENT
Money management simply means staying healthy financially. It is linked to earning money, identifying the route of your money as well as how it moves out. Every year most people make resolutions on how to reach their financial freedom. They set out their budgeting papers, their savings plan, spending and investment plan which are the scope of money management. But the question is, how many people achieve their resolutions? So if the majority do not achieve their goals, then what actually goes wrong and what can help one to manage his finance successfully? Consider the following essential qualities that have proven very successful over the years:

Simplicity: Resolutions to manage money can not be attainable if they are so ambiguous, so complicated. Ask yourself and let me ask myself, 'what do I actually want?' How best can I achieve my objectives? Make it simple, have a simple eye, do not bring in clusters of goals.

Specify Your Goal: This works hand in gloves with the above, this may be challenging but a well detailed goal put one in the line of achieving it. For example if you intend to reduce your debt then aggregate your debt; state how much you would be able to pay at a time and pin-point the date of such payment. Avoid making a lengthy number of debts you would want to offset at a time. Chances are that it won't work out fine.

Prioritize Your Goals: This requires self discipline to make it a point of duty to stick to your time frame but to help one achieve this, it is better to automate your financial management. That is to say, set a specific amount and date at which a transfer of fund should move out of your wallet to offset a debt; to pay an insurance premium; to save for a retirement plan or to pay for the kids education.

Envision Your Life in the Next 20 Twenty Years: Talking about retirement plan, there should be a clear cut strategy to save up for the rainy season. This requires early investment into a retirement account. Most people do have a percentage that goes into such account. It worth the efforts even though it may not be the best style.

Another premise to look at for effective money management is in the area of mindset. This premises exerts a great influence on a high percentage of people in management of finance. Consider the following mindset:

• The largees lifestyle: These group of people love pleasures, they live in high paying apartments, send their kids to expensive schools and buy expensive cars, gadgets and all what not. Even when there's economic depression in the country, they don't care to cut down. So when they fall, it is extremely difficult get back up.
• The overconfident group: They tend to be like the Apostle Peter of the Bible, to them things will always turn out well, no shaking. So they don't plan for the rainy day but are wrongly optimistic of life as if it's only one colour world. No Plan B in the agenda.
• The unnecessary risk takers: The individuals can dive into one investment platform with all their resources. They want to get rich quick, they might become swallowed up in a wrong investment.

But people can change their mindset and learn how to effectively manage their money.

Future Plan on Your Money Management
Having learnt this subject, I have these future plans:

• Though currently I have no defined debt, in case I fall into any, I will automate the payment by setting up a certain amount of cash to be transferred to my creditor.
• I plan to expand my Steemit business through recruiting and training new members, to that end I have specified my the steps towards that goal. First I have setup a mini office, the next is to put tables and chairs followed by printing of two large Steemit banners; then printing of T-shirts for monthly rally as well as printing of flyers.
• I plan to buy only what I need not what I want.

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Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly
Let me define the word portfolio as selecting the right kind of assets to trade on whether stocks or bonds or cryptocurrency according to ones' financial strength and time frame. Whereas its management refers to selecting investment policy with a minimum risk and maximum returns and then monitor its movement either by oneself or through a financial manager.

There are different types of portfolio management bu for want of time and space, I write only on two main types which are

• Active Portfolio Management: Here the managers take full control of the investments, are responsible for the buying and selling of individual's assets and are paid for doing so. The returns of investments lies on the ability of the manager to understand his client's needs and objectives, ability to scale over avoidable loses.

• Passive Portfolio Management: This manager handles a specific group of assets that match the market trend.

In effective management of portfolio, managers are expected to set goals for their clients' needs such as retirement plan, vacation, education etc. If giving a free hand to select, the manager determine the amount of aid a customer needs whether a manual assistance or by means of a Robot, He determines the strength of his clients' investment risk and help them put necessary STOPLOSS.

Selection of asset location also comes into play. Where will you house your assets? The type of account matters so much, so the portfolio manager should verify whether the account is taxable or not whether the account can help build the asset with tax advantage.

There are some models designed to effectively manage portfolios, such are:

• Capital Asset Pricing Model: It is used in calculating the rate of returns of assets with a view to risks of the market and when there's no risk of the asset.
• Arbitrage Pricing Theory: This considers the asset in relation to risk factors in the market.

Well currently I do not have any investment but will in the nearest future.

Future plan on your Portfolio Management: I have designed a procedure to follow in my future portfolio management taken into considerations the below criteria:

• Purpose: To grow my asset till I am 65 years
• Amount to invest: N150,000 (One Hundred and Fifty Thousand Naira)
• Allotted Time of investment: Till age 65, to make the first withdrawal of N20k and subsequently N15k monthly withdrawals.
• Risk: To be determined by my portfolio manager
• Investments: Index Funds - Because they diversify, are systematic and accessible investments. These makes room for low investors to make directly from their bank.

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CONCLUSION: This subject is very timely and important because it involves every human in this world. There is no point in time that emphasis on money management can be overemphasized. So this topic is a welcomed knowledge packed lesson. Thank you @stream4u for this week's lecture, I appreciate all professors of steemit crypto academy: @gbenga; @sapwood; @besticofinder and @yohann2on.

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