The poor are poor, the rich are rich

Chapter 64

Chapter 134 Family Finance

Even if you are living a single life of "one person is full, the whole family is not hungry", one day you will start your own family and face the family's financial problems with another person, so the sooner you know about family financial management the better.

The so-called "family financial management" concept is the rational allocation of family assets.In a popular way of expression, it is "careful calculation", which means to learn to handle and use family assets effectively and reasonably, and to plan and manage the family economy (mainly referring to family income and expenditure) by means of corporate financial management and financial methods, so as to enhance the family's economic strength. , Improve the ability to resist risks and increase the utility of the family.This is a very broad field, ranging from daily expenses, adding home appliances, traveling, to investing in bonds or stocks, buying a car, buying a house, saving children’s education funds, and even arranging for retirement. family finance”.Good "family financial management" can significantly improve the quality of family assets, and fully realize the potential of continuous appreciation of family assets.So, how to carry on family financial management?
1.First of all, we must establish the concept of "family financial management".Family financial management is a means to maintain and increase the value of family wealth. It is a process of maximizing economic value through scientific management and reasonable and effective control of family income and expenditure.Therefore, first of all, you must cultivate the awareness of "family financial management", otherwise you will pass by the benefits brought by "family financial management".

2.If you want to manage your family's money well, the most important thing is patience.Many people think that managing money is difficult.In fact, as long as you have enough patience, becoming a rich man is not an incredible thing. Back then, Buffett also started from 100 yuan.He relied on his perseverance to succeed.Buffett's wealth of 300 billion did not happen overnight, it took him 40 years.The secret of Buffett's success is very simple. He used the technique of "compound interest" to a superb level, turning 1 yuan into 1000 million inconceivably.It is the long years that allow "compound interest" to exert its power. "Family financial management" should be regarded as a permanent family career, and it takes patience to persevere.

3. "Family Finance" is a huge system.Its core is a set of well-thought-out "plans" that are continuously improved: many experts have done a lot of analysis and summary on this, the following is a set of typical financial plan books, hoping to help you formulate a plan that suits you financial planning.

(1) Estimate the opportunity.This is the starting point of the family financial plan, including a preliminary analysis of the possible future income and expenditure of the family, forming a judgment and analyzing the conditions for realizing the income and expenditure.

(2) Determine the family financial goals.This is the first step in formulating a financial plan. It is to determine the goals and focus of financial work for the family on the basis of estimating opportunities.

(3) Determine the prerequisites for financial planning work.That is, to determine the expected environment for implementing the financial plan.The better you understand specific conditions and apply them consistently, the more detailed your financial planning will be.

(4) Formulate alternative plans and determine the plan through comprehensive evaluation.To avoid only formulating one plan, only by considering multiple situations and formulating alternative plans can the most practical plan be found in the comparison.

(5) Formulate derived plans, that is, sub-plans.It is the basis of the master plan of family financial management, and the master plan should be guaranteed by sub-plans.Small families with a small population do not need this step.

(6) Quantify financial planning through family budget.This is the last step.In order to make the plan feasible, a detailed budget must be prepared to further quantify the plan.

After the above work is completed, my advice to everyone is: For those families or young people whose wealth is still very limited, the best financial management skills are saving and working hard to earn money, and of course, restraining excessive consumption desires.

Getting rich from financial management is a "marathon" rather than a "[-]-meter sprint", and it is about endurance rather than explosive power. Family financial management is not far away from you, and you can start now.

(End of this chapter)