What is Finance?

When we talk about finance, the first word which strikes anyone is money. Thus, finance in most simple words can easily be defined as management of money & all other resources which can be bought or sold with money.Finance is an insepearble part of our daily lives & is the nerve of  any business.

Finance has plenty of definitions, let us quote few-

1)      Most Commonly used-

“Management of money  & other assets”

2)      As per Businessmen,

“Finance is replica of cash , concerned with cash as each & every business transaction involve cash or cash equivalents”

3)      As per Academicians,

     “It involves money, management of money. That is obtaining funds, efficient utilization of funds,maximizing profit & minimizing costs”

 As per Financiation,

“ Finance is a combination of Economics & Mathematics. Each and every concept of managing money & effectively utilizing it involves economics- in most common words:theory of demand & supply & mathematical principles.”

The base of effective use of money starts with time value of money ,which itself is a combination of economics- taking into account inflation & other situations ,money losing value with time that is with same amount of money less  amount can be purchased & other mathematical concepts.

As per us, for effective utilization of money, one must be able to understand economics & mathematics & use the best combination of these two which can be termed as optimal finance utilization.