Read the first book to understand investment and financial management

Chapter 39 Taking care of family wealth and improving life happiness index (1)
I am in charge of financial management, I am in charge of my financial management

At present, with the increase of family income year by year, family financial management has become the highlight of every family. However, in people's life, we will find that most families still lack certain skills and do not pay attention to the rationality of financial arrangements , often more impulsive than rational, resulting in a large loss of family assets.So, how can we do a good job in family financial management, so that family assets can be safe and risk-free?In fact, the most important thing is to be rational and refuse to follow blindly. Only in this way can we do a better job in family investment and financial management, so that the family can gather money skillfully.

If a family wants to manage their money well, they must be rational first.Financial management at home is a small matter, but also a major family matter. Only by managing money well can the family be harmonious and the career be successful.Many families do not pay attention to skills and strategies when investing and financial management, and often act blindly, resulting in an undue loss of family assets.In fact, as long as family financial management is rational, these losses will be avoided.In recent years, household investment channels have continued to expand, and various types of investment and financial management have come to many families. Facing the dazzling variety of investment and financial management, high-yield and high-risk stocks are often favored by most families. As soon as you understand the stock investment market, you will find that the few families who invest in stocks make money, but the majority lose money. This phenomenon is caused by people's excess of impulsiveness and lack of rationality. If there is a bear market, people will panic, which leads to mistakes in judgment.Insufficient rationality is the enemy of family investment and financial management. Therefore, when families invest in financial management, they must consider both income and risks. As long as reasonable arrangements are made, less impulsiveness and more consideration will reduce risks and achieve expectations Purpose.

When managing money, you should pay more attention to acting in accordance with the law, use legal means reasonably, and preserve your property.In recent years, some lawbreakers in the society have specifically taken advantage of the loopholes that some people do not understand the laws of the country, and carried out inferior financial fraud. The debt was repaid; the non-convertible foreign currency and counterfeit currency of some small countries were used as real dollars and pounds, and low-priced exchange bait was thrown to let some people who wanted small profits get in; after borrowing money, they deliberately did not issue IOUs, and appeared The situation of defaulting on debts makes some lenders have no basis and no evidence, and the bitter fruit is hard to swallow.Families must learn strategies to deal with these scams in financial management, and the best countermeasure is to act according to the law.In family financial management, you must not covet small profits. Often behind small profits are mostly traps.But if this kind of thing happens in the family, you must pay attention to the reasonable application of the legal knowledge you have learned. Only in this way can you preserve your legal assets.

In this world, who cares most about your wealth?Who cares most about your family?Be yourself!In fact, any financial activities require you to make decisions by yourself.Even if you find a real financial expert to help you, he will only make suggestions, and the final decision will be up to you.What's more, financial experts are most concerned about their own wealth!Therefore, if you want to achieve your financial goals, you must participate in financial activities yourself.

When you make a financial decision, you take the first step to start managing your money.Financial management is one's own business, and it is necessary to formulate a reasonable financial management plan based on the reality of the family.When it comes to family financial management, put rationality first, don't follow others blindly, be less impulsive and think more when things happen, you will reduce risks and achieve the desired goal.

Building Home Risk Defenses
The phrase "a leak in the house happens to rain overnight" best describes the chain connection of family risks.In fact, "unlucky events" did not happen by chance, and there is an inevitable connection between such "successive misfortunes".In order to ensure the realization of family financial planning goals, it is necessary to take drastic measures.

[-]. Basic risk defense fortifications

Develop income channels.For example, you can participate in a company and get dividends every year; you can also rent out the vacant house and get a stable monthly rent; you can also engage in active investments that you are interested in, such as collecting stamps and collections.Even if a source fails, the losses can be offset by each other.

Minimize risk by purchasing insurance.When purchasing insurance, it is necessary to grasp the principle of "separation of insurance investment and investment" so that insurance can fully play its protective function.

Keep an appropriate contingency fund on hand.The family must keep an "emergency fund" equivalent to 3-6 months of family income.The funds must be in cash (demand deposits), or in a money market fund.

Financial managers at home should organize the financial information at home regularly and keep them in a safe place, so that the whole family can clearly understand the financial situation in case of any problems.

[-]. Investment risk defense

Use your portfolio well.The investment portfolio can not only diversify risks, not put "eggs in one basket", but also make investment more flexible. It is the first choice for working-class people to make financial investment.About 35% of household financial portfolio investment can be used for savings, about 25% for buying bonds, about 25% for buying stocks and funds, and about 15% for buying insurance.

Do a good job in fund transfer.According to market changes, timely adjust and convert savings, stock market, foreign exchange market, funds and other funds to capture investment opportunities.Special attention should be paid to the listing of new shares and funds and the issuance of government bonds, because these are good opportunities for investment.

Step-by-step, easy-to-difficult investment principles.Before investing, you should have a comprehensive understanding of various investment varieties in terms of investment methods, technical requirements, risk levels, ease of operation, and risk types.Choose the investment products that you understand and are most suitable for you.

Appropriate management difficulty.Some investment tools seem to have high returns, but they also have high requirements for the professional knowledge and time of investors. Investors may be overwhelmed for this, and cause losses in other areas. This kind of difficult-to-manage investment requires Think twice.

Retirement and estate planning considerations.Retirement funds are the foundation of life in old age. If you want to invest your retirement funds, you must be extra cautious.In addition, when older people consider investing, they should plan carefully in advance, so as not to discount their net worth when passing on property to the next generation.

Family financial management should not be in a single form and stick to one corner, but should be comprehensively attacked and "blossom" more.Not only keep an appropriate emergency fund, but also make good use of the investment portfolio, don't put eggs in the same basket, open up income channels, and build a strong risk defense for the family.

There are three accounts in the family, and the poor family is also easy to be

Since getting married, in order to better manage the family's finances, Xiao Mao came up with a very good strategy.Create three financial management accounts: household daily expenses account, family meal special account, and family financial management memorandum account.After years of insisting on recording, Xiaomao's three financial accounts have played an important role in her family's orderly financial management.Now, with this most primitive method of financial management, Xiaomao's family has lived a happy life.

[-]. Household daily expenses

This is the first financial account built by Xiao Mao.Xiao Mao divides this financial account book into four parts: income, expenditure, balance column and remarks column. Starting from the left, the first column records income, the second column records expenditure, the third column balances, and the fourth column is the remarks column. The source of income is wages, manuscript fees, or deposit interest income, and what kind of goods are purchased or what consumption items are used for remarks.One-stroke clearing, a small sum every day, and a large-scale settlement at the end of the month. Through this bookkeeping method, you can see whether you have a surplus or a loss this month. If you have a surplus, it will be carried forward to the next month, and there will be a surplus month by month. Carry forward, when there is a lot of surplus, it will be deposited in the bank as soon as possible. In this way, Xiaomao's family will be able to find out the overspend in a very timely manner, which will play a very good role in reminding to save in the future.

[-]. Special account for family meals
In order to be able to make overall plans for the family's financial management, Xiaomao immediately built a second financial management account - a special account for family meals, after creating the family's daily expenses account. At the beginning of each month, Xiao Mao will put the monthly food expenses The budget is allocated from the family's daily expenses account and put away separately to achieve the purpose of earmarking funds. Xiao Mao records the allocated funds into the first column on the left of the family's special account for meals. This column is used as the income column. The column is the expenditure column. For example, how much money is spent on buying rice, noodles, vegetables, oil, sauce, eggs, etc. is recorded in the second column. The third column is also the same as the daily expenses of the family. At the end of the month, the general ledger will be calculated at the end of the month.The difference from the household daily expenses account is that the remarks column is at the bottom of each page. The contents of the remarks column mainly record the daily food prices of a certain store or a vegetable market. When purchasing, you can be confident and buy "affordable" products through comparison.There are two benefits to Xiaomao’s family by setting up a special account for family food: ①If you want to improve the food, you only need to look at the expenditure situation of this month to see if there is potential, and then you can consider whether to improve it; After reference, the arrangement of meals for the next month will be more reasonable, effectively avoiding unnecessary waste.

[-]. Family financial memorandum
In order to effectively avoid unnecessary troubles caused by your own negligence after daily shopping and investment and financial management, if there is a problem with the product, you need to "warranty", and you can find relevant information in time when you need to report the loss of the savings certificate, Xiaomao has established The third book of financial management—memory account of family financial management. The memorandum account of family financial management is divided into four categories: investment and financial management, commodity, certificate, and knowledge.

(End of this chapter)