Definition

Watching closely how money moves in and out every day. Good management means you always have enough cash for bills and small opportunities.

What to consider

  • Keep savings separate from operational funds.
  • Review interest rates for better returns.
  • Use savings for strategic investments only.

Real world scenarios

  • A small firm opens a separate savings account to set aside surplus profits.
  • An entrepreneur in Nashville deposits a portion of monthly earnings into a high-yield account.
  • A startup builds an emergency fund by transferring excess cash from operating accounts.

Related terms

Entrepreneurial Finances