The Ultimate Goal Of Financial Management Is To Achieve Financial Freedom.

I think most people work hard and study hard. The ultimate goal of financial management is to achieve financial freedom.

Financial freedom can be divided into several stages.

The first stage: supermarket freedom, which means that when you enter the supermarket to buy things, you can choose according to your needs and the quality of your products, instead of paying too much attention to the price.

The second stage: time freedom, the most direct embodiment of this is that you can always go for a walk, and you can spend more time with your family.

The third stage: the freedom of the five star hotel, then the last stage, means that you can choose five star hotels on your own to enjoy yourself and your family better.

The fourth stage: spiritual freedom is also the highest state of financial freedom. At this stage, money is only a figure. Rather than making money, you may concentrate more on giving alms to help more people and achieve social prices.

I was only in the first stage of supermarket freedom. Actually, I didn't have much requirement for myself. My goal in life is to achieve the second stage of time free. I can always come and go on the journey, and have more time to accompany my parents and children.

My husband and I are not people with high material requirements. According to last year's family expenses: excluding car loans (end of this year can be finished), a family of three annual 20W expenses (children's Compulsory Education) can lead us to a more satisfactory life.

This is also the basis for my retirement that I can save 3 million of the cash (no longer buy a house). This 3 million is based on 5% of the investment income (interest rate of 150 thousand a year), plus about 50 thousand of the rent.

If my investment ability reaches 10% of the annual income, then I need to save enough 1 million 500 thousand of the cash to retire (save more than 1 million 500 thousand and work for many years).

If we can reach 8%, we need 1 million 900 thousand of the 150 thousand income; if the annual income reaches 6%, we need 2 million 500 thousand; if 5% is not guaranteed, then we need more than 3 million.

Therefore, under the premise of the same material desire, learning financial management can help us achieve financial freedom at an early date.

If my family does not consider the principal loss of stocks and the risk of running on the P2P platform, the current annual income is estimated to be around 5.5%.

The bank's wealth management and treasury bonds are at the head of the bank. The current bank financing is one-year, with expected revenue of 4.7% and 4.8%. The Treasury bond was bought from 2014, the highest is 5.41%, the lowest is 4.42% this month, and the annual income of P2P bought by husband is between 7-10%.

I began to contact the stock market (buying funds) in 2007, and I started learning finance from that time. Up to now, it has been 8 years, but my current investment ability is only 5.5% of the annual income.

It can be said that financial management is a very difficult thing, and we need to live and learn.

Of course, it is not too late to start managing money at any time. In fact, financial management is also a rational life. The so-called financial management is to plan our life at every stage.

Summing up 8 years of experience, how can we learn it well?

:

1, do not despise small money.

Everyone knows all the principles of accumulation and accumulation, but there are not many people who actually do so.

For example, the most modest deposit, 500 yuan a month, I think most people can do it. In a year, there will be 60 thousand in 6000,10. In fact, 10 years is also a matter of flick.

2, usually use the credit card interest free period at ordinary times, take part in the activities of credit card, and maintain one or two large amount of credit cards.

However, I still need to learn about the use of credit cards. Last year, I didn't use such a large amount of money, so I could have hundreds of yuan in interest.

3, we must persist in using compound interest and not waste a penny to give birth to money.

Often, money and honey ask, how do we deal with financial income? Is it spent or reinvested? So far, all my financial income, including the rent, is all the same.

For example, if the proceeds of financial products are due, I will buy the next financial products together, and why I only buy electronic government bonds, because it pays interest once a year, and on the day I receive the interest, I can buy another day without delay to enjoy compound interest; my family has been living in the cargo base since 2007.

4, individuals believe that all investments that fail to keep their principal security are failed investments.

You can participate in high yield (high risk) investment, but at this time, you have to do enough homework to know enough about it, and you can invest in real gold and silver again.

For example, if you choose a good quality stock, you will be able to make money for it if you can't stand it; choose a P2P platform with good quality and good reputation, which is less risky.

5, the fund's fixed investment must learn to stop profits. Last year was a good fact. The market value in May was absolutely different from the end of June and the beginning of July.

6, the most important thing for wage earners is to accumulate more capital. Your money management level is good. No money is useless.

7, the last point is also the most important.

To know that a serious illness can drag a wealthy family to poverty.

My goal at this stage is to accumulate capital and raise the level of financial management. If the annual income can reach 7%, then I will be free from time.