Understanding Finance from scratch

Chapter 1 Preface
Mankiw, a professor of economics at Harvard University in the United States, once put forward 5 suggestions to college students in the United States: [-]. Learn some economics, know the laws of economics, and grasp your own life. ②Learn some statistics. Statistics is the most frequently used skill in reality. ③Learn some finance and have the concept of life risk. ④Learn some psychology and recognize the flaws of human reason, including your own. ⑤ Trust your intuition and passion, and appropriately ignore suggestions that you think should be ignored.

When many people mention finance, they think that it is the knowledge that professionals contact and use, and has little to do with ordinary people.Actually, this is a misunderstanding.In a financial concept that almost everyone knows, there is a series of very profound truths, which can properly explain various financial phenomena we encounter.Of course, it is not easy to understand the mystery without in-depth research and thorough understanding.do you know?That's why we love finance.In fact, this is exactly why finance is misused and misunderstood by most people.

In real life, we are always haunted by the shadow of finance. Every little bit of daily life is closely related to finance. Behind every little thing, there are certain financial laws and rules to follow. , our life is inseparable from finance.Using the principles of finance to look at our lives, in fact, we are living in a financial paradise. Life is always financial, and life is full of finance.

In fact, finance is not like the moon hanging far in the sky, just out of sight; finance is not only complicated theories, advanced principles and abstract mathematical symbols.In this book, finance is just an inseparable, interesting fact that is closely related to our real life.

Finance is a must-know science. What does rising CPI have to do with our lives?Why do newspapers always talk about GDP?What the hell is going on in the euro area?Why do you have to pay taxes when you buy game currency... These are all little knowledge that is closely related to our lives. After understanding these, you will understand more thoroughly when you read the financial reports.

Finance is a very interesting subject. Why is "hot money" pouring into China?Why is the U.S. dollar worth more than the Chinese yuan?What are the benefits of RMB appreciation for us?After raising interest rates, how to prevent your wealth from being swallowed by negative interest rates?The prices of rice, oil, noodles, wine, vegetables and fruits are all rising. How to make your money "produce" money... The reserve and accumulation of financial knowledge can expand your horizons and increase your conversational resources.

Finance is a very practical subject.Finance exists in everyone's daily behavior, and everyone uses the laws of finance to make choices and trade-offs consciously or unintentionally in life. Consumption, investment, wealth management, financing, and lending are all financial activities.What does the increase in the deposit reserve ratio indicate?How to use futures for hedging?How to use compound interest to accumulate wealth?Is investing in gold the best option to fight inflation...Finance is closely related to the happiness of each of us throughout our lives.

Finance is a science full of wisdom.Knowing some financial knowledge can help us to understand more deeply the nature and truth behind the life phenomena around us that are related to our happiness and success, so that we can make more wise and rational decisions when faced with certain problems , reduce the sunk cost of life, and obtain the maximum benefit with the minimum investment.

In short, whether you are managing a business or personal investment and financial management, you have to master some financial knowledge.Only by mastering financial knowledge will one become sensitive to financial policies, and then grasp the policy direction in time to promote the enterprise to become bigger and stronger; at the same time, it is also beneficial for individual investors to adjust the investment and financial management structure in a timely manner, avoid investment and financial management risks, and promote the preservation and appreciation of assets. .

"Understanding Finance from Scratch" is a popular finance book, which systematically describes the basic theories of finance from the aspects of financial terms, principles, currency credit, bank interest rates, capital operations, financial institutions, and financial hotspots. Knowledge and its application in real social life.The book uses simple language to popularize common sense of economics, and answers economics questions with ease.There are no puzzling charts and equations, and no difficult and obscure financial jargon. Instead, the basic structure of finance is used as the skeleton, and the vivid examples in life are the flesh and blood. Let the readers quickly understand the whole picture of finance in happiness and enjoyment, and learn to observe and analyze various life phenomena with the perspective and thinking of finance, guide their own behavior, and solve various problems in life. .

Know a little bit of finance, and be a modern person who can understand economic phenomena and flexibly use the laws of finance to serve life.In the process of easy reading, we will definitely find that we have become more awake in life, more aware of choices and challenges in work, more rational in consumption, and more wise in investment.

There are inevitable mistakes in the book, please criticize and correct!
(End of this chapter)