For an individual, financial management is fairly straightforward: it involves balancing expenses and income, saving where possible, and keeping an eye on your bank account.financial aspects of an expenditure or investment project in terms of expected profitability, and on analyzing its results from a financial point of view For a financial company such as a bank or an investment fund, financial management involves managing cash flow, cash receipts and disbursements, investments, loans granted and loan repayment schedules.Financial management involves forecasting cash flow and incompressible expenses, budgeting, and finally controlling during and after execution.