How to invest in financial management
Everyone needs to plan and manage their guesses reasonably. Do you know how to invest and manage money? Let me share with you some methods of investment and financing!
How to finance and invest How to finance an ordinary family
1. Consumption
First of all, you should find out the financial situation of your family. Every family has to spend money, including housing loans, rent, daily living expenses, children's education expenses, and interpersonal fees. To sum up, there is a large amount of expenditure every month. However, in the case of limited income, if the monthly expenditure is too much, it may bring greater economic pressure to families, and it is also not conducive to the accumulation of original wealth.
It is suggested that every family can control expenditure through budgeting, bookkeeping, forced saving and other ways, and can also have a lot of wealth after accumulation. Specific expenditures should be prioritized. Don't be conceited and spend money by comparison.
2. Investment
Investment is an indispensable link to maintain and increase the value of family wealth, and it is also a link with high difficulty coefficient in implementation. Because the process of investment always has gains and losses, the key is how to get more income while keeping the principal.
The situation of each family is different, so it is necessary to formulate appropriate investment strategies based on various factors such as total family assets, family stage, risk tolerance, etc.
At the same time, when investing, do not invest all assets in high-risk products such as stocks and futures. When necessary, allocate some stable fixed income products to ensure the safety of funds.
3. Liabilities
It is not a bad thing to have debt. A moderate amount of debt can often make the family's capital turnover, thus creating more wealth. However, if there is too much debt, the family will face financial pressure.
How to make money?
Financial planning should comprehensively consider the three factors of risk, profitability and liquidity.
Financial planning needs to first analyze your financial situation, including assets and liabilities and income and expenditure.
Financial planning should have appropriate goals, be persistent for a long time, and be constantly optimized.
How to conduct investment and financing
At present, investment and financing have become more and more important in society. Investment and financing has become a skill we must learn. If we learn to manage money, we can increase wealth and make your life better. What are the benefits of investment and financing?
What are the benefits of investment and financing?
1. Improve the quality of life
Reasonable investment and financing can greatly improve our economic situation, thus improving the quality of life and increasing the fun of life.
2. Ensure the elderly have a sense of security
In order to ensure a prosperous life in later years, financial management plans should be formulated as early as possible. In the pension plan, the retirement age, the estimated annual living expenses after retirement, the estimated inflation rate, and the estimated annual return on investment after retirement should be considered.
3. Guarantee fund security
The security of funds includes two aspects: ensuring the integrity of the amount of funds and ensuring that the value of funds does not decrease. There should be a moderation attitude. It is not the more you earn, the better. It is necessary to understand the risks and benefits of financial products.
4. Keep and increase the value of existing assets
Asset appreciation is the common goal of every financier, and different age groups have different financial needs at different stages. You need to get married and buy a house when you are young. When you are middle-aged, you need to save education funds for your children and provide for your parents. When you are old, you need to consider pension and other issues, all of which need funds.
5. Protection against accidents
The correct financial management plan can help us minimize the maximum possible loss when the risk comes.
Many people think that only the rich will manage money. This idea is wrong. People with less assets can also manage money. As long as you regularly take out a little money to invest and manage money, and do this for a long time, your wealth will accumulate more and more. If you decide to start managing money, your consumption will be more reasonable and reduce unnecessary expenses, Reasonably allocate your own funds, reduce daily expenses, use some of the remaining funds for emergencies, and use the other part for investment and financing. In addition, financing is risky, and you need to understand your risk tolerance
How to conduct investment and financing
1. Understand your own assets and liabilities, divide your income into three categories, including daily expenses, repayment of debt funds, savings funds, and then invest your savings to make money.
2. In the investment of funds, you should choose according to your risk tolerance. If you can't bear the risk, you should invest most of the funds in products below the stable type; If you can bear certain risks, you can buy stocks, funds, etc.
3. If it is family finance, the "4321 rule" should be followed, that is, 40% of the capital can be used to protect the principal and appreciate, and bonds, national debt, dividend insurance, etc. can be purchased; Invest 30% of the funds in stable products, risk products, etc; Generally, 20% of the fund is allocated as a reserve fund for major diseases; 10% of the fund is used as living expenses of the family.
What are the ways of investment and financing
Everyone's income can be basically distinguished according to income from labor and income from assets. The main source of income for most people is labor income, that is, the basic labor remuneration obtained from working in the company. The income from assets requires a certain amount of original capital accumulation. The income from investing labor income into the stock market, buying wealth management, buying funds, etc. can be simply called income from assets.
Each person's expenditure can be basically summarized from five aspects, including food, clothing, housing and transportation. At the same time, it can be distinguished by fixed expenses (necessary expenses such as eating, drinking, traveling, housing loans, etc.) and flexible expenses (going to restaurants, buying clothes, watching movies, traveling, etc.).
The financial management of office workers should be the total income minus fixed expenses, and the remaining disposable part after leaving enough necessary flexible expenses for the current plan. I usually allocate this part of funds for personal finance from the following four aspects.
1. Living money management is the money that may be used at any time in daily life. This part of money is mainly used to deal with daily expenses or contingencies, and can also be used for long-term investment positions at an appropriate time. This part of money mainly considers the liquidity of funds. At present, the best allocation direction is monetary funds. The most common monetary fund is Yu'e Bao, but at present, the annual return rate of Yu'e Bao is only about 2.1%. The monetary funds I hold with relatively stable and high return rate are Nanfang Tiantianli Currency B and E Fund Cash Margin Currency B, with an annual return of about 2.5%. T+0 is convenient and quick to deposit and withdraw, and its return rate can also rank in the forefront of major monetary funds for a long time.
2. Robust investment is a part of the capital that pursues steady returns. The investment period of this part of funds can be half a year to two years, because the investment period is longer than that of live money management, which means that higher returns can be obtained on the basis of lower risk. The main investment direction is various financial products or bond funds. At present, the annual return can reach about 5%. China Merchants Bank, Tiantian Fund, Jingdong Finance and other platforms can buy some good financial products, which are basically similar in nature. They are all securities companies that invest in various credit bonds in the later stage of their asset management plans, and the risks are relatively controllable. In the later period, with the net worth management of funds and various asset management plans and the occurrence of credit bond risk events, this part of wealth management products also face the risk of loss, but the overall risk and volatility are much smaller than that of stocks.
3. Long term investment is the part of pursuing long-term asset appreciation. It is suggested that the investment period of this part of funds should be expected to be at least 3 years. With a longer investment period and greater risk, we can exchange risk for return, and select some high-yield partial stock products, such as index funds and better actively managed funds. Personally, I will buy some fund products through Tiantian Fund, Alipay and other platforms, which is also the main way for us to significantly increase our wealth management income.
4. Insurance guarantee is the money to buy all kinds of commercial insurance. There are always unexpected risks in life. The COVID-19 epidemic in 2020 gives us a deeper understanding of risks. It is very necessary to allocate some money to arrange insurance and pave safety mats for yourself and your family. The essence of insurance is to use a small amount of money to prevent accidents that may be unbearable in the future. Therefore, it is not recommended to allocate savings insurance as an investment, but to choose consumer insurance with relatively low prices and provide necessary protection at critical moments. At present, the four mainstream commercial insurances are serious illness insurance, life insurance, medical insurance and accident insurance. Better companies will allocate supplementary commercial insurance for employees, and some excellent companies will allocate additional commercial insurance for employees and their immediate family members. Personally, I strongly recommend that everyone sort out the insurance under their own name, and suggest that everyone at least configure a serious disease insurance for themselves to ensure that they do not rely only on "water drop financing" in extreme cases.
Everyone's life is inseparable from dealing with money. Money is not everything, but without money is absolutely impossible. In fact, the premise of financial management is that you should have free money to operate, so the most important thing is never how to spend money, but how to earn money. If we can focus more than 80% of our energy on how to work well and earn more money, and then devote 10% of our energy to sorting out the funds at hand and doing a good job in asset allocation, we believe that the future is foreseeable.
How to learn investment and financing
Learn how to invest and manage money
1. Develop a positive earning state
Many people do not know that everyone's income is generally divided into wage income and investment income. For a novice investor, the most direct income is salary. Therefore, they are more interested in improving their own wages. For them, the most important thing is to change their lazy earning state. Only by increasing their income can they further carry out other investment and financing activities.
2. Keep setting yourself a small goal
The same principle applies to financial management. After forming a positive earning state, we should start to cultivate the idea of making big money. Take becoming a rich person as your goal. In the process of financial management, don't just think of ways to save money, save money and other ways to earn a small amount of money. Put forward some higher requirements for yourself, for example, by purchasing a financial product, you can earn tens of thousands of dollars in a year.
3. Re understand your financial situation
In investment and financing, whether a master or a novice, it is necessary to have a clear understanding of their own financial situation. Only in this way can we make the most suitable investment and financing plan. Therefore, before participating in investment and financing, the "salted fish family" of financial management should have a detailed understanding of their own financial situation. At least, they should have a general understanding of how much capital they can use for investment and how much capital risk tolerance is.
4. Master the source of information
Now is the information society. Mastering an important piece of information can make you succeed overnight. Generally speaking, in addition to considering the current situation, the formulation of financial management plan should also be based on the family's basic situation, financial status, income and expenditure and ability.
Financing is a long-term process, which requires time and patience. If you want to succeed, you need to be able to resist the pressure that others cannot, and stick to the things that others cannot. The most important thing in financing is persistence. Find a partner for yourself to finance together. Regular experience exchange can stimulate interest, so as to persevere in the end.
