Contingency reserve arrangement refers to a sum of money that can be quickly withdrawn when funds are urgently needed. It is usually recommended that the savings amount is equivalent to three months' living expenses. The establishment of contingency reserve arrangement can avoid having to borrow high-interest loans in an emergency.
5. Rational consumption
When spending, you should consider whether your income and expenditure are balanced, and don't blindly pursue excessive consumption, which will push your financial situation in a negative direction. Avoid high interest loans, such as credit card loans and consumer loans.
Save for retirement
If your company doesn't provide you with a pension, then you should start saving money to prepare for retirement. It is suggested to invest regularly, such as 40 1(k) plan and individual pension plan.
7. Create a good credit record
Credit records are very important for applying for loans, credit cards, renting houses and even employment. It is recommended to make firm repayment every month to ensure that the credit card usage limit is not violated and that there will be no long-term debt default in the credit record.
8. Investment in fixed assets
Investing in fixed assets such as real estate and garage is also a financial choice, which can ensure the appreciation of assets and can also be used as a source of income in the future.
9. invest in stocks or funds
Investing in stocks, funds or other financial instruments can get considerable returns, but there are also risks, so we should study carefully before investing to understand the basic process and potential risks of investment.
10. Save money
Controlling expenditure is an important part of financial management. As long as consumption can be controlled, the accumulated funds will increase. You can reduce your expenses by budgeting, buying necessities, using coupons and promotional activities, and trying to make your own food. Be cautious in borrowing: if you need to borrow, make sure that you only borrow the necessary amount and pay it off within the repayment period. Learn more about investment: Before investing, you should carefully study relevant knowledge and understand different investment methods and risks. 13. Avoid excessive consumption: Don't give up long-term financial health for short-term enjoyment, but avoid excessive consumption and unnecessary expenses. 14. Insurance is necessary: buying medical insurance, car insurance and family insurance can help people reduce their economic pressure when an accident happens. 15. Diversify funds: Don't invest all your funds in the same investment method, but diversify your funds to reduce risks. My answer is over.