Economic Wisdom to Apply in Your Twenties

Chapter 37

Chapter 5 In your twenties, you need to have a little investment brain

Don't worry about your weak mathematical knowledge will cause any obstacles to your investment, remember Buffett's advice to you: learning to invest is very simple, as long as you are willing to read.

Section 1 If you want to invest, you must know how to invest

When new terms such as "Moonlight Clan", "Poor and Busy Clan" and "Chewing Old Clan" became the group symbols of most young people born in the 80s, we began to examine the common reality behind these terms.In fact, whether it is "moonlight", "poor and busy", or "gnawing the old", the root cause lies in the economic problems of young people.

No one wants to "make money every month", and no one wants to be "poor and busy". We all hope to have more money to allow ourselves and our families to live a better life, and we also hope to have more Disposable funds to realize your various dreams.Perhaps every young person has had the dream of becoming rich one day, but whether you can turn the dream of "getting rich overnight" into reality depends on whether you know how to invest.

We all know that controlling consumption and managing money reasonably can accumulate savings.But if you want your own capital to take a leap to a higher level, you have to learn to "let money make money" through investment.

Assuming that your current savings are 10 yuan, what do you most want to do at this time? "Buy a house first, invest in some stocks if you have any extra money, honor your parents, and then deposit the money in the bank."

Are most young people planning such wishful thinking?

If you think so too, the next thing to consider is, where should you buy a house?How much area to buy?What kind of house to buy?If you need a loan to buy a house, how much is the bank interest?At that time, what kind of repayment plan should be drawn up to pay off all at once?What if the bank interest rate rises in a few years?

Also, what kind of securities to buy?How much to invest?Why do you want to buy?Do you know all these?If you want to buy securities, you must first know the commercial value of the relevant company and the recent profit. Can you estimate these?In fact, these are not very simple things, and I am afraid that they cannot be figured out in a day or two.

There is no such thing as a stuffed pie in the sky. Even if you encounter it by chance, there are still many people who don't know how to eat it.In fact, most people who win the lottery return to the life of pauper soon after.

It is not so easy to make money, every investment has risks.Blind investment not only cannot bring benefits to oneself, but may lose even worse.The change of the market is like a trap. In the change, there are mistakes in your judgment on supply and demand, and there are also traps set by your partners.In the stock market, if you are not careful, you will be locked in; if you are not careful on the negotiation table, you will be controlled by others; in market competition, if you are not careful, you will be squeezed out of the market by your opponent.Therefore, not everyone has the conditions to invest.It can be said that most people have more than enough energy.So what conditions should investors have?

1. Review your family and personal budget first.Except buying treasury bonds has no risk, other investments have risks.If you have to wait for money to be used in the near future, it is best not to invest in stocks, even the best stocks are not suitable for buying.You can only invest when you are not waiting for the money to be used, or when your life will not be affected even if you lose the capital.Therefore, investors should have sufficient bank deposits to maintain their lives for a year and a half, as well as temporary emergencies.

2. Don't invest while in debt.Debt should be paid off first, or reinvested when your ability to repay the loan is more than sufficient.Because the return on investment is not 100% guaranteed, investors should not borrow money to invest.

3. Appropriate insurance should be obtained before investment, such as life insurance, medical insurance, housing insurance, etc.

4. Investment should start with a small amount and proceed gradually.Investing too much is one of the reasons why most investors fail.Not putting all eggs in one basket, diversifying investment and diversifying investment is also one of the important means to avoid risks.

Not all people are investment masters, and the market is only reserved for those who are competitive.If you don't have a certain psychological quality and discrimination ability, blindness will make you fall into the trap at any time.Investors not only require the above conditions, but also must see all directions, listen to all directions, and constantly improve themselves in order to cope with sudden changes, avoid risks, and embark on a smooth road.

Are you ready?Start investing in your life now!

Wisdom Pieces: Ten Investment Channels

1. Stocks.This is an era of "everyone shares".Stocks have long been the first choice for personal investment and financial management.However, "the stock market has risks, and you must be cautious when entering the market."

2. Fund.No time to keep an eye on the market for a long time, lack of experience and common sense in stock trading, and relatively small risk tolerance, then funds have become the investment choice for this group of people.Generally speaking, stock funds have the highest risk, currency funds have the lowest risk, and bond funds have moderate risk.

3. Bonds.From the perspective of investment portfolio, the long-term stability of bonds is the key reason for everyone to hold them.

4. Gold.Chinese people have a natural love for gold, and the current price of gold has been rising all the way, so that this traditional metal investment has once again entered the public eye.

5. Foreign exchange.To make money by speculating in foreign exchange, you must consider the risk of exchange rate fluctuations.Especially through foreign exchange margin trading, the risk will be enlarged proportionally.

6. Bank wealth management products.Bank wealth management products are suitable for people who pursue stability, have low requirements for yield, and do not want to participate in market transactions in person.

7. Trust products.The China Banking Regulatory Commission positions trust companies as professional high-end financial management service institutions, and the entry threshold of 100 million yuan means that the number of people participating in trust investment is not very wide.Trust products follow the principle of "own responsibility for losses", and investors shall judge and bear risks by themselves.

8. Futures.If stocks may make your assets go to zero, then futures may default.Futures are suitable for risk takers with a lot of personal assets.

9. Real estate.If the funds allow and the expectation of rising house prices exists, it is undoubtedly a good idea to choose to buy a house, but the liquidity of real estate is poor. If you want to invest in buying a house, it is best to use surplus funds that have no short-term use.

10. Collection.This is a relatively special field of financial management.Most of the people who join it are out of their own hobbies. Antiques, masterpieces, coins, stamps, etc. can be invested and collected, killing two birds with one stone.

(End of this chapter)