Analysis Of The Essence Of Financial Management &Nbsp; Let You Go To Wealth Road.

Abstract: ordinary people hold cash in order to meet daily expenses, prevent emergencies and speculative needs.

The essence of "managing finances" lies in making good use of everything in hand.

1 necessary asset liquidity

People hold cash in order to meet daily expenses, prevent emergencies and speculative needs.

In family life, cash flow planning should be used to meet short-term demand with cash on hand. The expected cash outlay will be met through various savings and live short term investment tools.

2 reasonable consumption expenditure

The primary purpose of personal finance is to make the financial situation sound and reasonable.

In real life, learning to save money is sometimes easier to achieve than a high investment income.

Through the consumption expenditure planning, we can make the consumption expenditure reasonable and balance the family income and expenditure structure.

Household debt ratio should not exceed 25% to 30%.

3 achieve educational expectations.

With the growing demand for education, education accounts for a larger share of household expenditure.

Families need early planning for education costs to ensure that they have the ability to pay their own children's educational expenses in the future and fully meet their individual (family) educational expectations.

4 complete risk guarantee

Risks are everywhere in a person's life. Risk management and insurance planning should be adopted to minimize the losses caused by accidents, and to better avoid risks and protect life.

Professionals suggest that we should pay attention to consumer insurance.

5 avoid "sitting on this mountain and looking at the mountain".

Drawing up investment and financial management strategy is like playing chess. Before the war starts, we should carefully plan the steps and strategies.

The short line operation and the final end of the heart and mind are often overturned in the sewer.

Abstract: ordinary people hold cash in order to meet daily expenses, prevent emergencies and speculative needs.

In family life, cash flow planning should be used to meet short-term demand with cash on hand. The expected cash outlay will be met through various savings and live short term investment tools.

6 keep green hills without fear of burning wood.

The best investment and financial management concept is to ensure that life is free at the present stage, and then plan the spare cash for better quality of life.

The power of asset allocation should not be ignored. If you want to invest, please think about how much strain and endurance you will encounter when facing risks or losses, and not be blinded by profits.

Win the battle in 7 defeats

Life is bound to suffer many setbacks. Failure is a costly tuition. You will find that these are absolutely worth the money.

8 accumulate wealth

The increase of personal wealth may be achieved through "saving money", but the absolute increase of wealth will be realized through the increase of income.

Salary income is limited, investment has the characteristics of actively striving for higher returns, and the rapid accumulation of personal wealth is mainly realized by investment.

According to the objectives of financial management, personal investment and risk bearing capacity, effective investment options can be determined, so that investment can bring more and more income to individuals or families, and gradually become the main source of income for individuals or families, and ultimately achieve the level of financial freedom.

9 enjoy old age

The ability of people to gain income has declined, so it is necessary to carry out financial planning in the young and middle-aged, so that they can live in old age with dignity and self-reliance.