Read the first book to understand investment and financial management

Chapter 42 Spending money is a balanced art of living (2)
If you don't have the habit of saving, you can only rely on forced saving. The "new poor" had better choose to deposit money in a special account every month, such as through the bank's "small deposit and withdrawal", "lump deposit and withdrawal" or regular quota purchase funds to force savings.

5 Separate "Needs" from "Want"s
The "new poor" who are prone to impulsive consumption must think about whether the things they want to buy are "needs" or "wants" before spending money, and then try to reduce the expenditure of "want" and only buy "need" things .

In addition to keeping accounts based on "want" and "need", it is best to keep a complete account for one year.Because one year is the most complete cycle, the budget can be controlled according to the accounts of the past year in the future, and the months with more and less expenses can be adjusted mutually.

6 Avoid group consumption
Group consumption is absolutely different from individual consumption. The "new poor" should try to avoid shopping with friends.If a person wants to buy a white shirt, he may only buy a white shirt when he comes back, but if he goes out with friends, he may buy another pair of pants, and he may also go to dinner, drink coffee, sing KTV, or watch a movie.So if you want shopping, just go by yourself.

7. Use credit cards less

If you often suffer from impulsive purchases, the "new poor" should use less credit cards and only take cash within the budget when going out. No matter how impulsive they are, it is less likely to exceed the budget.

8 Find Alternatives to Venting
Work pressure is high, so I like to go shopping and spend money to buy a relaxed feeling, which is also the main reason for the "new poor" to "lose blood".Many office workers need to let off steam at the end of a certain job, but should try to find alternatives that don't cost much.For example, rewarding yourself with a good movie or buying a good book can achieve the venting effect of consumption behavior, but it takes time and determination to slowly change your habits.

9 Investment-type enjoyment
It is also spending money, and it is better to spend on investment-type enjoyment than consumption-type enjoyment.Things like cars and home appliances are short-term enjoyments, which are of little help to long-term life, and their value will also depreciate over time.

Taking English classes is an investment-type enjoyment. Not only will the value not be compromised, but it can also help you find a better job and a higher income.Therefore, when setting consumption goals, it is necessary to check whether it has an investment nature.

For the working class, "impulsive consumption" is the enemy of financial management.

For example, I am very excited when I see a discount, spend a long time in the mall, and take out a large bag of cheap products.It seems to be cheap, but actually bought a lot of things that you don't need or don't need temporarily, which are purely extra expenses.Generally speaking, keeping a "chronological account" is the best way to deal with "invisible" sporadic expenses, and it is also a good way to effectively restrain "impulsive consumption".No one's memory is as clear as an account, and very few people have no desire to buy.

The desire to consume is endless. If you don't control your desire, no matter how much money you have, it will be spent.The principle of family financial management is to accumulate first and then consume, control consumption desire, refuse to consume ahead of time, and save all unnecessary expenses.

How to spend less and not waste money

It's not easy to make money, and spending money is like running water. It's nothing. The most worrying thing is spending money wrongly.If you want to manage your money and save money and hope to become a rich man one day, not wasting money is also one of the factors.Spending less and not wasting money is also one of the ways to save money.

Wronging money is both explicit and implicit.For example, if you buy a Mercedes-Benz E-320 in China, you have spent more than a million RMB. Compared with the price of other cars, although it is expensive, the price-performance ratio is not bad.However, if you buy the same Mercedes-Benz in the United States for less than half of the money, this is a hidden waste of money.The obvious waste of money is that after you bought a Mercedes-Benz E-320 and spent more than one million yuan, the seller said that you should spend [-] yuan to buy a GPS anti-theft device. This is an obvious waste of money.

Because this system is completely unnecessary. First, thieves cannot steal the current Daben, whether you have this system or not; secondly, if you lose your Daben, it is covered by an insurance company, and you will get it back for a lot of money. , Therefore, the 2 yuan GPS anti-theft device is a waste of money.

The outside world is wonderful, and the outside world is also very helpless.It is not easy for us to earn money, and we must be careful when spending money, but we must have brains, wisdom, and analytical skills, and strive not to spend money wrongly.Wronging money is also money!

If your main source of income is fixed wages and bonuses, you need to understand that the financial management that suits you must start with throttling.

Controlling expenditure can be regarded as a risk-free investment, and it is also a necessary condition for us to obtain savings, and it is also a starting point for us to realize our life goals.Learning to save money will help you cultivate your long-term financial management concept, let you see farther, make your goals more realistic, and make your future life planning more operable.

Another aspect closely related to throttling is savings.Savings are divided according to the time limit, generally there are monthly savings and annual savings.The working class should pay enough attention to the monthly savings. If your asset accumulation is limited, you should make good use of the monthly savings. The monthly savings are like an "accelerator" that allows you to achieve your goals faster.

At present, regular fund quotas are the best financial management tool to accelerate monthly savings.You can choose a regular fixed amount fund variety that suits you in the market according to your goal and the expected time limit for reaching this goal.For example, if you have just joined the company, your current monthly fixed income is 30 yuan, and your fixed expenditure after cutting expenses is 10 yuan. Your goal is to accumulate 5 yuan for car purchase within 15 years, so how should you choose your own fund?First of all, your monthly savings has been determined to be a maximum of 20 yuan, and then you can convert the goal of 5 yuan within 15 years into an investment return rate.Through simple calculations, this annualized rate of return is 878%.In other words, if you want to ensure that your goals can be achieved, you should choose a fund that can achieve an average annual return of at least 5% within 878 years.Another point, once you have determined that your goal is 878%, you should not easily choose an investment greater than 10%.Because on the one hand, you have to know how to choose between the best and the best. 878% is not necessarily the best return, but it is the best for you; You need to take a bigger risk for this.

Pay attention to throttling and make good use of savings, the beginning of financial management is as simple as that!
Family financial management is to handle and use money reasonably and effectively, so that one's own expenses can be used to the greatest effect, so as to meet the needs of daily life to the greatest extent.To achieve this, we must manage the money in our hands well and not waste any money.

Control expenses, wring out water, learn to save money
Nowadays, many working families will face such a problem-seeing two people making a lot of money, but not saving much, why?Because there are many imperceptible loopholes in the financial management of the family's daily life, if you are not careful, the money will flow away unconsciously.So, how to plug the loopholes in the loss of assets in these family financial management?Relevant financial management personnel put forward some suggestions to avoid loss of money ingeniously.

Family financial management It is not easy to wring out the moisture in the family budget and learn to save money, but a sensible budget has a considerable effect on blocking the loss of assets and saving money in the family's financial management.Therefore, when making a family financial budget, we must control from the following aspects.

[-]. Control of fixed expenses
For every family, the budget for monthly fixed expenditure occupies a large proportion, such as the child has gone to school, the cost of school; if the house is rented, the monthly rent fee; such as supporting the elderly parents, the monthly alimony Wait.On the surface, these fixed expenses are not adjustable, because the word "fixed" has already been defined. In fact, nothing is absolute. It is these fixed expenses. If we grasp the source and control them within a reasonable range, There is still water to squeeze.

[-]. Control of expenditure on living facilities
Expenditure on household living facilities is also a big part of household expenses, such as telephone bills, electricity consumption of household appliances, etc. In fact, if you use these household living facilities reasonably, you will also save yourself some money.For the phone, it is necessary to avoid unnecessary phone bill expenses and put an end to the bad habit of talking on the phone.As for household appliances, turn them on when you need them, and turn them off when you don’t need them. If the weather turns warm, you can wear more clothes. You don’t need to turn on air conditioners and electric heaters, but the family doesn’t wear much clothes. , but still enjoy the heat of turning on air conditioners and electric heaters, which virtually increases family expenses.

[-]. Control of spending on food
In terms of food, most people feel that they should not treat themselves badly, so it is commonplace to go to restaurants and restaurants to improve themselves.In fact, this improvement has virtually increased the cost of food for the family.Of course, the author is not advocating eating here. After all, the body is the capital of the revolution, and it should be improved, but it needs to be reasonable and flexible.If you want to improve, it is not difficult. If you buy a food book and family members learn by themselves, not only will your cooking skills be improved, but you can also achieve the goal of improvement.Of course, the ultimate goal is to improve and reduce costs, which is very important from a financial point of view.

Fourth, the control of clothing expenditure

Impulse is the devil, but many families are impulsive when it comes to clothing, which causes the family to waste a lot of money in vain.For example, when you see the clothes you like, you have to buy them regardless of the price. Don’t you know that the quality of the one at home is almost the same as the one you like, and the style is only appropriately changed on the basis of yours. In fact, whether you buy it or not You can buy anything.Moreover, there are still some families who like high consumption regardless of their family conditions and income, and don’t wear non-famous brand clothes, or don’t buy clothes that are cheap. It costs a lot.If the quality of the clothes is good, the style is new, and the price is reasonable, why don't you choose them?You can't lose your ticket for the sake of face.

How to effectively use every penny and how to grasp every investment opportunity in a timely manner is what financial management needs to solve.The trick to financial management is to increase revenue, reduce expenditure, and strive for capital income.

Read the shopping scriptures cleverly, and control consumption well

Look at these unplanned financial management behaviors, and you will know why the demand has not increased but the budget is always overspend: buy things in a hurry when they are urgently needed; there is no time to carefully choose and compare prices; I can't wait to pay for it when I go to the cabinet; what I buy is always at a high price; I buy things scattered nearby; it takes time and effort and often wastes money!
[-]. Choose when to shop

Buying things in accordance with time or season can often save a lot of expenses.In fact, we all know that seasonal vegetables and fruits are cheap, and seasonal clothes are discounted.But you need to pay attention to some details when buying, for example, you should pay attention to the quality when buying clothes for changing seasons and choose non-popular styles, so that you will not be out of date when you wear them in the coming year.

Second, the choice of location is also particular about

Large comprehensive supermarkets are convenient for shopping and the prices are relatively cheap, but the dazzling array of displays can easily overwhelm people's desire to buy, and the result is that the original budget is exceeded at checkout.It is most suitable to go to this kind of supermarket only when buying necessities that consume a lot of life or sharing with friends and neighbors.There is also a kind of supermarket for certain types of commodities, such as household appliances, communication products, etc., which are mostly operated as a chain.In addition, there is another shopping channel that ordinary people are less familiar with, that is, direct contact with manufacturers.However, due to the contract between the manufacturer and the dealer, not all kinds of products can be "super-buy", but the products with a large amount of money can be tried in this way.Check the model and make an inquiry in the store first, and then check the manufacturer's service number through the business service column of the newspaper or the phone book at home.In actual operation, this kind of "super purchase" often relies on the manufacturer's employees as the intermediary, and the "employee price" is usually more than [-]% off to purchase, even if the "middleman" makes a small profit of [-]%, it is still a good deal!

Three, according to their own needs to buy
If you can buy the products you need most during the discount season, it can be said to be the most cost-effective.If the seasons change, at the end of summer and the beginning of autumn, most merchants will sell some famous brand leather sandals at a discount to prepare for the next season. At this time, some people still need to buy a pair of leather sandals suitable for themselves. The best time to buy leather sandals. Men’s leather sandals generally don’t change much in style. Even if you can’t wear them for a few days at this time, you can still wear them in summer next year. Most leather sandals can be bought in the alternate seasons of summer and autumn, and you can get 8% off the original price. , 7% off, or even lower, so that you can save at least 20%~30% of the money when you buy the same style of leather sandals, and get a real "benefit".But it is worth reminding that you must not be tempted to be cheap for a while, be fooled by the low-price discounts of merchants, and waste money in vain.

Fourth, come prepared
People who are good at financial management "have something to spend, and what not to spend".High price does not mean high quality.Consumer prices are not fixed in the market. Consumers have to rely on their strength and shop around to buy things of good quality and reasonable prices.To achieve fruitful bargaining, you need to absorb more commodity circulation information and develop the ability to recognize goods.Usually read newspapers and magazines’ product reports, but pay attention to the involvement of advertisements and analyze the credibility of the reports.The information with the most direct effect should be some analysis reports, which only analyze and evaluate aspects such as quality and price but do not draw conclusions.This kind of objective report occasionally appears in newspapers and is of great reference value.

[-]. It is better to buy in reverse than to buy in the right direction
Shopping can beat the time difference and is a great way to save money.Buying vegetables can avoid the rush hour of the morning market. Every day at noon or evening is the "best time" to buy vegetables. This "reverse buying method" can save about 30%~50% of expenses, which is equivalent to "earning" hundreds of dollars a month Yuan.Taking advantage of the seasonal price difference can save more money. Buying summer clothes in winter and winter clothes in summer has long become a way of consumption for some citizens.If you want to buy tea from Hangzhou, raisins from Xinjiang, and ham from Yunnan, you can ask someone to go to the place of origin to buy it directly. For some small and scattered daily necessities, you can use the difference between wholesale and retail to reduce expenses. Relatives, friends, Neighbors and colleagues go to the wholesale market to buy together, and everyone can save a lot of money.

[-]. Collective buying

Solidarity is powerful, and a larger discount can be obtained by using the "collective purchase" method.This is especially useful when purchasing larger value items, such as a house.When buying a house, you might as well gather a few relatives and friends who want to buy a house, and collectively negotiate with the developer, and you can often get extra discounts.

On the one hand, when shopping, you must restrain your desires and avoid impulsive purchases. On the other hand, you must pay attention to skills, seize the opportunity, and shop around so that you can buy "practical" and not "garbage". Only in this way can you buy affordable goods and avoid unnecessary waste.

(End of this chapter)