There are many money management tips and tricks you can employ to become a more efficient saver. For example, keeping track of recurring expenses, like your morning coffee, can help you cut costs and put the money toward things that matter most, such as saving for a home or paying off debt. Another important money management mantra is to “pay yourself first,” which means putting aside some of your monthly income for emergencies and your future.

There’s a lot more to financial management than just tracking your expenses and creating savings goals, however. Financial management is a specialised field that encompasses the strategic planning, execution, direction, and monitoring of all financial activities within an organisation. It’s also about ensuring that the company has enough funds to fulfil all its current and future obligations and investments.

As such, it’s crucial to understand what is the primary goal of financial management in order to effectively manage a business and ensure its long-term success. This article will explore the primary goal of financial management along with its underlying objectives, such as profit maximisation, wealth maximisation, ensuring sufficient liquidity, and maintaining sound financial stability.

Generally, the primary objective of financial management is to maximise the net profit of a firm. This includes all revenue generated by a company and any expenses it incurs. It’s also about establishing a stable cash flow and identifying opportunities for investing extra capital into the business. This can be used for growth and development, or even to pay off debt if necessary.