The purpose of financial management is not only to make money, save money and reinvest, but also to make money.
Financial management is to realize the preservation and appreciation of personal assets and the maximization of investment income within the tolerable risk range by clarifying your current financial situation and future life planning. Money is just a tool for your pursuit of happiness and free life.
If you save money blindly and make it a shackle of an unhappy life, then you need to adjust the structure of savings and consumption. House, car, pension, education fund for children to study abroad. By achieving these phased financial goals, you can get a healthy family financial situation, which is also a plus item for family happiness.
2. let's start with accounting for wealth management.
Financial management is never a simple matter. According to the financial situation and financial objectives of different families, we should formulate reasonable financial planning, implement targeted asset allocation and debt management, and increase revenue and reduce expenditure. This involves many indicators, formulas, figures and common sense. Many times you need to learn to sort out the above three tables of family finance to calculate an account. Like operating companies, family finances need to be managed. The balance sheet lets you know the total assets and liabilities of the family, the income and expenditure statement lets you know the monthly flow, and the cash flow statement can reflect the family's earning ability and value growth potential, so that you can master the family's disposable funds and avoid being caught in a dilemma when an emergency occurs.
3. bookkeeping! Bookkeeping! Bookkeeping!
First of all, you must be clear about your financial situation, which needs to be achieved by keeping family accounts. Find the right financial software and be your financial helper. Although it is easy to slack off, you have to understand that just like a good company can't live without an accountant, if there is no one at home, your financial situation will definitely be in a mess.
4. Only when the income is greater than the expenditure can we "have money to manage".
The financial situation of families living beyond their means is definitely unhealthy and unsustainable. Either reduce expenses and increase income, or reduce liabilities and reduce interest expenses. The greater the total household income is than the total household expenditure, the greater the financial space. Families with more and more incomes are not necessarily financially healthy. Only when their expenditures increase synchronously can they achieve their savings goals.
5. Moderate debt is a good thing.
Your habit may be to live within your means, but proper debt is not a bad thing. Debt means that with leverage, families can use more funds and have more assets.
From the life cycle point of view, middle-aged families are in the formative period of family and career, and their income and expenditure are showing a rapid growth trend, which is more suitable for adopting a more active asset allocation strategy. On the premise of maintaining steady income growth and making insurance plans, we should appropriately use financial leverage to increase the asset-liability ratio, increase the share of stocks or stock funds, and appropriately reduce the share of bank deposits or bonds.
6. Investment is not financial management.
Investment is only part of financial management.
Remember that investment is only a means of financial management, not an end. If you don't know anything about stocks, gold and futures, it's not financial management, it's adventure. Family financial management is the distribution of your assets and income. Investment is only one of the means to achieve financial goals. If most investment products lose money, not investing is also a good way to manage money. Financial management includes three parts. You can remember the following equation:
Financial management = saving money+investing+reducing losses
7. Financial freedom and early retirement are technical jobs.
Of course you can dream of early retirement and financial freedom. But the premise of realizing them is that you have to know how much it costs to achieve the state of "no shortage of money". This account is different for everyone, of course, you have to calculate it yourself. By making good use of investment and financial management tools and compound interest plan, you can at least make a gradient plan for income growth through the expected retirement year and the total amount needed to enjoy retirement-financial freedom obviously cannot be expected to make a fortune, and it is also a technical job.
8. Your social pension may be only 30% of your previous salary.
If it is not a civil servant, the income of employees in public institutions will drop sharply to 30% after retirement. Do your own financial planning before retirement, and the increased financial income can ensure that the standard of living will not decline after retirement. If you don't have a good financial planning, living too long is your biggest risk. But if you are a public institution or a civil servant, you can get 80% to 90% of your salary before you retire.
9. Your capital has an opportunity cost.
You often need to make a choice among various financial decisions. When making decisions, we must consider the time value of money, that is, the interest income of funds. When the investment income is higher than the one-year interest, your investment will get excess income.
10. Use financial planning to guide asset allocation instead of asset allocation to solve the problem of making money.
Different families have different financial conditions and future financial management goals, so the corresponding asset allocation is naturally different. Asset allocation is not only to make money, but also to prevent risks, which is the core guarantee of family financial security. For family finance, safety always comes before making money.
Asset allocation is divided into three steps:
1. Use financial planning to guide asset allocation;
2. Determine asset allocation according to personal risk attributes;
3. Make financial security planning.
1 1. The allocation of family financial assets does not mean diversification of investment.
Diversification of investment is only one of the strategies for asset allocation of family financial management, and whether the asset allocation is reasonable or not determines the future investment income. Diversified investment for the sake of diversification is not a good asset allocation, and the income from concentrated investment suitable for family circumstances may be better.
12. Ask a consultant to help you manage your finances.
You may be used to making all investment and planning decisions by yourself, but investment and financial management is a professional skill. For many people, finding the right professionals and using other people's professional skills to serve themselves are likely to have better results.
Only by knowing the real financial situation of your family can a professional financial consultant make a correct family financial planning for you.
How much money you need depends on what kind of life you want.
You can try the cash flow game invented by Robert Toru Kiyosaki, the author of Rich Dad, Poor Dad, which can at least bring you the initial financial impact. In the cash flow game, low-income security guards are often more likely to gain financial freedom than high-income security guards such as lawyers and doctors. Different income, different life you want and different money you need. What kind of life do you want? This will determine how much you need to spend. Only by appropriately restraining desires, increasing passive income and making good financial planning can we realize the life we want as soon as possible-enough money to spend.
14. Pension depends on passive income.
Active income is the income that can be exchanged through hard work. Once the work stops, the income stops. After retirement, the only way to make up the pension gap is to rely on passive income, such as savings, rent or stock dividends. Passive income beyond these wages needs to be planned before retirement. If you don't want to be a burden that affects your child's future career and life choices, it is more important to plan ahead.
15. I buy insurance to protect my cash flow, not to make money by investing.
Insurance protects the cash flow to maintain the normal expenses of the family in the event of an accident, rather than ensuring that you earn anti-inflation money. It is difficult to have both protection and investment, and investment-linked insurance is difficult to outperform funds most of the time. So don't be fooled by the propaganda of "guarantee and investment" in insurance sales. Buy protection and buy insurance that suits you directly. Forget the investment-linked insurance with poor historical performance.
16. Sometimes, the meaning of investment is to avoid becoming poor.
If you don't manage money, money will ignore you. High inflation will devalue your assets, regardless of accounting, you will become poorer and poorer. The primary goal of financial management is to ensure that wealth does not depreciate, and the second is to strive for stable growth of wealth. The secret of capital preservation is to know when to hold your ground and when to make a profit.
17. Spending a lot of money can sometimes save money.
Wearing 100 yuan/pair of shoes once is far more expensive than wearing 1 000 yuan/pair of shoes for one year. Spending a lot of money on expensive goods is often a better way to manage money, just as expensive houses in the city center are more valuable than cheap houses in the suburbs. Cheap things are not good things most of the time
18. Controlling expenditure can increase savings.
You can increase your savings from four other angles: reasonable tax saving, budget control, debt reduction and interest reduction, and early repayment.
19.5 Risk affects family financial planning.
In many financial decisions, it is difficult to identify and evaluate risks. But there are five risks you must pay attention to: inflation risk, interest rate risk, income risk, personal risk and liquidity risk.
20. A healthy family financial structure should be through the comprehensive allocation of assets and liabilities.
For families without debt, they can increase their investment assets with moderate debt. Families with debts should make plans to achieve long-term debt reduction goals. A healthy family financial structure should be a comprehensive configuration, and a greater return on investment can be obtained under the premise of safety.
2 1. Credit cards and loans are credit.
Controlling spending through budget and debt reduction plans requires managing your credit. Only when credit management is well controlled can your cash flow become healthier and healthier.