First, what is financial management:
According to the literal understanding, financial management is to manage finance, so as to preserve and increase the value of finance. As can be seen from the definition, the primary purpose of financial management is to preserve the value of assets, and then to increase the value on the basis of maintaining the value.
In fact, financial management is not simply making money. Financial management includes three meanings:
1. Bottom-up financial management refers to the basic expenses paid to protect the individual's right to life and health, such as purchasing social security, medical insurance and commercial insurance.
2. Consumption-oriented financial management refers to reasonable arrangement of expenditure and not excessive consumption. In other words, the money you save is also the money you earn.
3. We are all familiar with investment-oriented financial management, using our own idle funds to invest and gain income.
Therefore, from the above three points, we can see that everyone in life is managing money all the time, instead of some people complaining that they have no spare money and can't manage money.
2. What should we pay attention to in financial management:
1. hedging.
Buffett, a famous stock god, said that investment should remember these three points: the first is to keep the principal, the second is to keep the principal, and the third is to remember the first two.
It can be seen that preserving value is the first step in financial management. Only by preserving the value can we think about how to further increase the value.
2. Determine your risk tolerance.
Before choosing financial products or methods, you should accurately assess your risk tolerance. To put it bluntly, what is the maximum loss you can bear, such as 10,000 yuan, and you can only lose 1000 yuan at most, so your risk tolerance is within 1000 yuan.
3. What are the methods of financial management?
1. Bank deposit. This is the simplest way to manage money, that is, to deposit money in the bank and earn interest, with the lowest risk and the lowest income.
2. Bank wealth management products. At present, most banks have wealth management products, such as conservative and risky products. Of course, bank wealth management products do not promise to guarantee income.
3. bonds. There are government bonds, financial bonds and corporate bonds.
4. Fund. There are many kinds of funds, such as money funds, bond funds, index funds and stock funds. The risk is different. The risk of funds is smaller than that of stocks. Fund financing is especially suitable for those who manage money.
5. stocks. The income is considerable, but the risk is also high, which belongs to radical financial management.
Risk level: bank deposit
Income: bank deposits
The income is directly proportional to the risk level, and the higher the risk, the higher the income.