Cash Flow Management Case Study

According to (Power!), cash flow management is described as an important process of supervising, analysing and controlling our personal financial situation. Cash flow includes two critical components which is income (inflow) and our expenses (outflow). Developing cash flow management is an important step in order to track your own spending and manage your income proactively. Moreover, you should track this weekly, monthly or even quarterly. To prepare a clear cash flow statements, three steps should be taken. First step, you should make a clear list of your inflows. Second step, you can know how your money have spent by recording your cash outflow monthly. For instance, you should write down all of your expenses and differentiate your fixed

In other words, she have spent more than what she get. Therefore, she have a deficit (negative) cash position which showed that she is experiencing shortage of cash. In this case, she tend to use borrowed money to settle all her debts. This action will definitely put her in worse financial situation if she does not take immediate action. Thus, she should make manageable adjustment and control immediately before her financial situation become worse. In addition, she are suggested to manage her finances wisely and effectively by creating a budget, which is a useful and realistic plan to estimate her income and expenses in the future. Budgeting is a great way to help her keep tracking how her money was spent every month and ensure her financial situation is on her

Besides that, Suraya should invest in different type of investment to reduce the risk. Nowadays, there are many people like to invest in property such as land, building and residential. Before investing property, the investor needs to determine the more potential capital appreciation area. For instances, Kuala Lumpur have the highest property value in Malaysia. There are two types of return from property investment which is collect rental income from tenants and capital gain which mean the investors sell off the property when the price of the property is at the higher