It is better to start a small business than to invest.
About financial management and investment:
Everyone must have heard of the "28" theory in investment, which means that 20% of people earn 80% of the profits. You must not be willing to do it. The 80% of those who are stuck. The financial market is volatile and can be said to be a cruel market. However, ordinary individual investors lack the advantages of capital and information, so it is not easy to make profits. So many investors have this question: "What is the best investment?" Here, we recommend financial investment products such as funds to investors, whether you are a young working class with little experience and capital, or you have no time to manage money. Senior retail investors, through funds, you have the opportunity to obtain equal profit opportunities with institutional legal persons and large investors.
With the gradual opening of the domestic financial market, more and more investment tools are available for individual investors to choose from. In addition to stocks and funds, there are also various bonds, capital-guaranteed investment tools, etc. But for people who only have tens of thousands or even less than 10,000 yuan in funds, it is very difficult to invest in stocks and some new investment tools. Because the minimum investment thresholds for various new financial instruments are very high. The same goes for stocks. If you invest 20,000 to 30,000 yuan in stocks, you are lucky to be able to buy a blue chip stock. If you want to diversify the risk, it is almost impossible. You can't spend 20,000 to 30,000 yuan to buy dozens of stocks to diversify it!
Every investor should focus on his or her own expertise. Instead of racking your brains to analyze the market by yourself, it is better to put your money into high-quality funds managed by professional investment teams. This is the first step for "people without money" to accumulate assets.
The second step is to make a good allocation of assets. You can follow the 100 principle. Subtract your age from 100 to get the proportion that should be invested in more aggressive investment tools, such as equity funds. For example, if you are 40 years old now, your investment in equity funds or stocks can account for 60% of your investment amount, and the remaining 40% should be invested in stable investment tools, such as time deposits, treasury bonds, and money market funds. wait. Of course, this principle is relatively universal and initial. Everyone's situation is different, and market conditions are constantly changing. Asset allocation must be constantly adjusted based on these conditions.
The third step is to find a way to buy and sell at the right time. Fund online trading can easily do this for you. Many investors have encountered this situation, that is, the net value of the fund has reached their buying price due to the decline of the market, but they missed the investment opportunity because they were busy with work. Now you only need to open online trading on the fund company's website and set the conditions for scheduled subscription or redemption, and then the computer can help you monitor it. As soon as the conditions are met, the subscription/redemption instructions you set will automatically Execute and seize every rare market opportunity.
The fourth step is that "people without money" may not be able to invest a lot of money in investment funds at one time, so using a regular fixed amount may be the most appropriate method. The starting point for regular quotas is low, with a minimum investment of five hundred yuan per period. In addition, regular quota is a long-term investment process, which has the effect of diversifying time points. When the market is relatively poor, you will buy more fund shares. When the market is relatively good, you may buy fewer fund shares. , the overall rate of return may be higher than a one-time investment, and there is an opportunity to provide investors with a long-term stable return. Similarly, you can also use fund electronic transactions to easily set up and operate regular fixed-amount business.
I hope that all "people without money" can create more wealth for themselves through successful financial management. (China Investment Morgan Fund Management Co., Ltd.)
A friend whom I haven’t seen for a long time, probably three or five years ago, suddenly called me when he came in and asked me to treat him to Ah Yi abalone, which was produced in Japan. When asked about the reason, he replied: "The domestic economy is developing rapidly, and the A-share market is advancing rapidly. It is difficult for me not to make money."
In the past few years, China's stock market has repeatedly set new highs. Astonishing. For example, the Shanghai Stock Exchange Index soared from less than 1,000 points in mid-2005 to more than 6,000 points. In more than 2 years, it rose 6 times, and the Shenzhen Component Index was not far behind. On the other hand, as China's economy continues to grow rapidly, other asset prices are also rising sharply. Property prices in many big cities have doubled in just a few years. With the domestic stock market and real estate market continuing to be booming, on the streets, whether they are high-ranking officials, wealthy businessmen, or peddlers, they often talk about stocks and investment returns.
Some people even talk about the compound interest effect of investment. The 10,000 yuan invested today, based on the annual investment income of 15%, will be 660,000 yuan in 30 years. The annual income of 25% will be more than 8 million. They excitedly look forward to the birth of another Buffett.
Among them, it is inevitable that some people will feel sad, shaking their heads and sighing. Because they are short of money and have no more spare money to invest, they think they have missed the investment opportunity. A large part of them are young people who have just entered society. They don't have much savings, so they can only watch the booming investment market and lament that heroes have no place to play.
If someone tells you: Even if you have no money, you can invest and even get a very good return. You might laugh it off and not take it seriously. However, this is indeed a fact and not a myth.
First we need to generalize the concepts of capital and income. The true meaning of income is not a bunch of colorful paper money. The reason why paper money is meaningful is that it can be used as a medium of exchange to exchange for various items that people finally need and to buy various services they need. As the great economist Irving Fisher, the originator of modern investment (000900, stock bar) theory, said, "Money is useless before it is spent. The final salary is not paid with money but with the enjoyment bought by money. Dividends Checks only become the final income when we use them to buy food, clothes or cars and then enjoy them. ”
In other words, those things that bring us real enjoyment are the things we enjoy. Food that appeals to everyone's taste, houses with reasonable layout and beautiful environment, pressed and comfortable clothes, beautiful mountains and rivers, and beautiful music. These things may satisfy our appetites, or they may open our eyes and provide visual and auditory enjoyment. This is the real income. The capital you currently own is the discount of these future incomes. Today we buy stocks, futures, bonds, invest in the property market and shops, in the final analysis, in exchange for these direct incomes. It is precisely because of this that we should understand that what can bring us income does not necessarily require a lot of money in exchange. It is even said that there are some things in it that no amount of money can exchange for.
It is easy to get a villa, a fancy car, fine clothes and food, and spend a lot of money, but sincere friendship, a happy family, beautiful music, and gorgeous articles are difficult to exchange for money alone. And these things can bring us a steady stream of income. Young people who have just entered society and lack spare money can focus on starting with these things.
For example, when others spend a lot of time picking stocks and buying funds, you can work hard, read more and write more, and learn English well. I believe many people can understand the rewards of learning a language well, because they can see it in their lives. Those who are proficient in English can work as translators or professional teachers and earn a lot of money. Even if you don't reach this level, as long as you reach a rough level of fluency, I believe it will not be difficult to find a job in a foreign company as a professional assistant and double your current income. You should also know that in today's increasingly globalized world, learning another language means more opportunities, no matter what kind of job it is. The same goes for Chinese. Spending some time every day to learn some poetry and ancient Chinese will also have similar rewards. In stock jargon, a language is actually a very good potential stock, suitable for long-term investment. If you stick to it, the returns will be huge.
For more choices, you can also learn how to appreciate classical music; concentrate on calming down and read more good books; make a few close friends and have a cup of tea and talk about the past and present. These are real investments that mainly cost your time, and the important thing is that they are similar to investing in art. While investing, you also have income: you can feel more and more the nobility and elegance in classical poetry. Elegance, the ability to appreciate the wonderful melodies of classical music, the surprise and pleasure of having guests come from far away from time to time to cut candles at Xichuang, and feel the exchange of knowledge and the value of friendship.
Therefore, instead of complaining about poverty and inferiority, it is better to spend some time and energy to make some of the above investments. They can bring your cultural quality and appreciation ability to a higher level. These qualities and abilities will have real rewards under the free market. And the more open and civilized the era and society, the higher the rate of return on knowledge and art will be.
One dollar a day for financial management
In the financial market, the most important reason for financial management is that capital will always be rewarded.
Even if you have always failed math, or you are very insensitive to numbers, and even feel dizzy when you see financial statements - but if you are ready to start a personal financial plan today, I still have a way: one dollar a day.
Many friends ask me: If you don’t work, you won’t have food to eat. If you don’t manage your finances, you won’t go hungry, right? My answer is "not necessarily".
Here is a simple calculation: If there is a 30-year-old uncle with a zero-year-old child, from this point until retirement at the age of 60, in 30 long years, such a family of three will Home, how much does it cost to meet the basic needs of this family?
For a family of three, 3,000 yuan a month should be the most basic amount for each person to eat every day and various expenses, which is about 1.08 million yuan. There is no doubt about this;
A down payment of 200,000 yuan, a total of 800,000 yuan - in Beijing, this is a very cheap housing, and you can only buy it outside the Sixth Ring Road;
If you buy a car, from the age of 30 to retirement You need to buy at least two cars beforehand, spending 300,000 yuan. In addition to the annual car insurance, gasoline and other expenses, the total is 700,000 yuan;
Raising another child, excluding studying abroad in the future, will last from birth to university graduation. According to current big cities such as Beijing and Shanghai, By city standards, it costs at least 400,000 yuan;
This is already almost 3 million yuan. We still have to support our parents, so there are four elderly people together... The current figure recognized by the industry is 4.8 million yuan. If you only rely on your own monthly salary, it should not be very low based on the current family monthly income of 10,000 yuan. Then it will take exactly 30 years to earn enough 4.8 million yuan. What about life after 60?
This is what financial management is all about. If you do not carry out good financial planning, not only will your wealth leave you one day, but you will also be unable to meet and achieve the most basic living conditions.
The so-called financial management is the pursuit of long-term and stable income. A comprehensive financial management focuses first on funds and capital. Financial management and investment cannot be equated. What I feel most deeply is that many relatively professional media often fail to understand one concept - more people talk about financial management as investment, and what kind of investment is better - in fact, "investment" is not really financial. planning.
Reckless investment behavior is sometimes more like gambling: if you gamble, if you succeed, your goal will be achieved; but what if you don't succeed? There are actually only two situations in life - either you don't have wealth; or you are knocked down by wealth. The first thing to implement in real family financial management is to ensure financial security. Only by achieving financial security can we meet other financial needs, ultimately pursue financial freedom, and enjoy the happiness of real life.
Comprehensive financial planning is a huge topic. To put it simply, perfect financial management includes the following: first setting financial goals; secondly managing assets and debts; then managing family risks; Then there is the combination of investment projects; it also includes reasonable tax avoidance, good wealth transfer plans, etc.
The principle of financial management is also very simple: in the financial market, the most important reason is that capital will always be rewarded. As long as you have remaining assets, through reasonable operation and planning, you will definitely be able to obtain more new funds. On the other hand, if you spend more money than you earn, the end result for your financial situation will be disastrous. If you can't restrain yourself very effectively now, or start reducing your debt, financial planning will be impossible to talk about.
Even if you have always failed in math, or you are very insensitive to numbers, and even feel dizzy when you see financial statements - but if you are ready to start a personal financial plan today, I still have a way: One dollar a day.
I don’t believe that anyone can’t save one yuan a day – with such a small investment, you can still achieve amazing financial results. Assume that the annual rate of return is 10%. If you save one yuan a day for a zero-year-old child, you can leave it there forever, or buy some better fund products. If an annual rate of return of 10% can be achieved, by calculation, when the child reaches the age of 60 and needs to retire, this money will become 2 million yuan.
In fact, many people know this financial management rule. If the rate of return is 4%, your assets can double in 18 years.
In other words, the 100,000 yuan in your hand at the age of 29 will become 400,000 yuan at the age of 47. If the rate of return can be increased to 12%, the money in your hand will double in 6 years. It’s time. However, there is a premise here: first, you must ensure such income every year; second, this fund cannot be used in any intermediate year.
Some time ago, I always heard: So-and-so has even sold his house and put all his assets into an investment - this is the most undesirable thing. Because you cannot guarantee that the money will not be used for a long time, but if you carry out effective planning and spend reasonable funds, it can be achieved.
Financial management requires starting from keeping money. If you have no money, you must learn to manage money.
After graduating from school, I held a clerical job in a company with a monthly income of only 2,800 yuan, but I did not Therefore, I tighten my spending. I believe in "you can drink today and get drunk tomorrow". Saving money for an unknown tomorrow has no appeal to me.
However, as prices rise, money always flows away inadvertently. This is even more true after meeting a girlfriend. Going out to restaurants, watching movies, and shopping can easily take a week. It's just a few hundred dollars in expenses. So I became a typical "moonlight tribe".
Frankly speaking, I don’t think I am extravagant and wasteful. Many expenses are considered necessary in my opinion. In the first few months when I started working, I often spent half a month's salary ahead of schedule. In the second half of the month, it has become a daily routine for me to use a credit card to overdraw the next month's salary to survive.
Until last year, I made up my mind to get married to my girlfriend in the past two years. Although my parents had bought a house for me to get married, because of the remote location, my girlfriend hoped to buy a car after marriage. , of course we also plan to have children. After this calculation, both my friends and family began to urge me to save some money and manage my finances.
I used to think that financial management was a matter for rich people. I never thought that poor people also need to manage finances. My girlfriend advised me: "Let's start with simple savings." She even took the initiative to propose I am very moved by eating less and shopping less in the future. In order not to let her down, I made up my mind to pass the thrifting hurdle first.
I started to develop the habit of keeping accounts. I found that this was very helpful in controlling my own expenses and preventing money from "unknowingly flowing away". Of course, I like to have fun and I don't want to be harsh on myself. , so I first set a simple goal for myself, which is to save at least 800 yuan to 1,000 yuan every month.
Actually, I was inspired to do this by an article on the Internet, which fully proved the magic of "gathering sand into a tower": If someone is willing to do a careful calculation, they will find that if a person starts from the age of 30, every year If you save 500 yuan a month and make reasonable savings according to the current bank deposit interest rate, you can have about 400,000 yuan by the time you are 60 years old; even if you only save it for 10 years, you will still have 210,000 yuan by the age of 40; if you save it for 20 years, you will have 500,000 yuan. years old, about 320,000. This calculation is really shocking!
I can’t help but think that if I can do a good job of "saving money" and saving as soon as possible, it means that I can rely on the money I have saved to retire comfortably in the future, and this only requires me A little bit of perseverance can usually be done.
So I have arranged a life savings plan for myself since last year. I went to the bank to open a special account. The first thing I did when I received my monthly salary was to save 500 yuan. To prevent emergencies from happening in the future, I divided my deposits into three-month terms, six-month terms and one-year terms. This ensures that when unexpected needs arise, I will have mature funds available for withdrawal at any time. .
Currently I don’t have enough courage to fight in the stock market because it requires more professional knowledge. But I want to spend 200 yuan every month as a fixed investment in funds, and strive to get a higher rate of return than bank deposits. Of course, I know that funds are risky, so I don’t want to invest too much. I will try the waters with 200 yuan first. Suitable for my personal risk appetite.
In short, over the past year, I have come to realize more and more that poor people still need to manage their finances, and they should save money early; the earlier you do it, the greater the benefits will be in the future. I want to thank my girlfriend for supporting me. She also said that I am more mature now than before. I think our love is also growing with our wealth!
Use other people’s money to make money. This is how Buffett makes money.
“Life is like a snowball.
The most important thing was to find wet snow and long hills. "The concept summarized by Buffett in his biography has transcended the category of wealth and has become a portrayal of his life.
The author reviews the history of the Buffett family by interpreting the unique Jewish view of wealth. Using a large number of stories of successful people and Jewish fables about wealth, it explains the wealth principles that must be followed to snowball like Buffett, and also provides operating methods and models for applying these principles to accumulate wealth.
Each. Everyone can find their own "snowball" and "long slope" from this book.
On his 77th birthday, Warren Buffett is still looking forward to meeting new friends, completing more investments, and making more investments. He continues to make suggestions in many ways, because the unknown world is infinite, and he feels that his knowledge is still far from enough, and he has just started. “Life is like a snowball. The most important thing is to find enough wet snow and long enough hills. ”
“Wet snow” refers to the resources that can be absorbed by the wealth during the rolling process and gradually grow with time. For example, insurance float and long-term holdings of Berkshire Hathaway Investors in the company's equity; "wet snow" can also be professional managers with extraordinary knowledge and ability. These "wet snow" are the most important factors for Buffett's success. "Long slope" is a necessary condition, and a good company is such a channel. What are the conditions for a good company to continuously increase the value of wealth as it flows through the channel? First, it must be long enough, and investors must choose good company stocks and hold them for a long time; secondly, the runway must be as smooth as possible (the company's stock price must be stable). Business performance must grow continuously and steadily), and don’t have big ups and downs. The road is too bumpy and no one can bear it; thirdly, don’t squeeze in too many snowballs, otherwise after frequent collisions and consumption, your snowballs will reach the end. The possibility is very small; in the end, we need to be patient enough and wait for the snowball to gradually grow.
Seven tips for making money by investing
This does not mean that we can only do this. Resign yourself to fate and do nothing; you cannot control the investment market, but you can choose a successful investment strategy: choose investment varieties and combine these varieties appropriately.
Technique 1: Investing is not about picking up shells on the beach.
< p>Many of us invest like picking up shells on the beach, blindly and without specificity. One day, we hear about a good stock from a friend, so we buy it; the next day, we buy it again. I saw a good stock in the newspaper and bought it - it was like picking up a lot of shells and owning a bunch of stocks: disorganized and unorganized, and not caring whether the investment portfolio was reasonable.The reasonable investment method is: first choose the investment portfolio, then choose some different investment varieties, and then go out and find the benefits of this method based on these varieties. Yes, even if part of your investment suffers a loss, other parts will not be affected and may even gain.
Tip 2: Don’t buy yesterday’s hot items
What was hot in the past. Varieties cannot guarantee your future returns. The biggest risk in investing is to pile up a large amount of money into stocks and funds that have created market myths in the short term. Short-term excess returns often cannot be sustained, which means those who take high-altitude flights. Investors are often left bruised and bruised.
Even if you have done a sophisticated analysis of such a stock and believe that it still has potential, you can only use it as part of your multiple investment portfolios. Once you lose, it will only be a partial loss.
Tip 3: Don’t underestimate the investment cost
In stock trading, most people don’t care much about the 0.5% transaction fee. A 20% annual return on capital is a small amount compared to the large amounts of money earned in recent years.
But this idea obviously ignores the long-term effects of investment fees. The commission is only part of the transaction cost, and they may also get more benefit from the increase in the price of the stocks they hold, or earn the difference when buying and selling stocks for you, and this difference is the extra fee you pay. Generally speaking, the fee for each stock purchase and sale is only half a percentage point, or even less. However, if transactions are frequent and the amount is large, over time, this half percentage point will become two percentage points. Three percentage points, or even more, can end up eating up a chunk of your investment income.
In order to calculate the impact of transaction costs on capital returns, if we single out all the larger equity funds in the United States that have survived for at least ten years, we get a surprising result: transaction fees The annual trading volume of the fund with the lowest transaction fee exceeds that of the fund with the highest transaction fee by 1.8% to 2.3%. If you think this difference is insignificant, we might as well make a specific comparison: if you invest US$50,000 and the annual rate of return increases from 8% to 10%, you will earn an additional US$2,174l (pre-tax profit) in ten years.
Tip 4: Avoid clinging to it and closing when things are good
If you buy two stocks: one rises by 25% and the other falls by 25%, then What should you do? If you are an ordinary investor, you will generally sell the stock that makes money
After studying trading patterns for nearly seven years, Terrance Oden, a finance professor at the University of California, found that half of investors Will sell the stocks that made money in their hands. After that, he compared the profit-making stocks he had sold with the loss-making stocks in his hands, and found that after two years, the profit-making stocks and the loss-making stocks had a return rate of only 3.5%.
Why are we keen to sell winning stocks but hesitant to sell losing stocks? The answer is simple: because we don’t want to cut our flesh. Once a stock falls into the water, we generally try to fish it out instead of throwing it away before it is dead. But let’s not forget the fact that Amazon stock sold for $70 a share in the early 2000s and is now trading at just $15. There’s no telling when we’ll see it return to $70.
Tip 5: Find out your risk tolerance
It is common for investment results to be opposite to expectations. When we should be cautious, we often relax our vigilance. For example: the Nasdaq index in early 2000 rose by 84% compared with 1998. Investors generally felt that the bull market pattern was set, but historical experience tells us that the stock market surged by a large margin, opening up a huge rise. After the space, the probability of its collapse is the highest, because major companies have quietly shipped goods at a high level.
Why do we risk our lives by investing in the stock market when the sirens are buzzing in our ears? One of the reasons is that we have not experienced a bear market for a long time, and we have forgotten that the bull-bear cycle is an inevitable law.
Tip 6: Find out the authenticity of the news
Columbia University psychologist Paul Anderson divides investors into two categories: one is to buy and sell stocks based only on current price data; The other type is to trade after mastering relevant price information and reading media analysis of the causes of stock price fluctuations. When stock prices soared, Paul Anderson found that the group of people who speculated stocks based on media information made half as much profit as the group who received little information.
Why did the group without sources earn more? Paul Anderson explained it theoretically: The news we get is almost all about the prediction of the trend of a certain stock. Therefore, when the price of a stock is exaggerated by the media (it seems that the prediction is very accurate), it continues to rise. When , we buy; conversely, when the stock price goes down and the media is pessimistic, we sell. Many investors buy and sell stocks based on this operating idea, causing stock prices to rise or fall irrationally.
The correct method of operation: pay attention to the news, but do not let the news influence our actions. Adopt a "just look at the source" strategy for any news source, and only take action after clarifying the authenticity of the news.
Tip 7: Time is the best litmus test
From 1995 to 1999, the S&P500 Index has brought investors 26% returns every year. With the stock market bullish over the long term, it's easy to be blindly optimistic and believe that the bull market will continue in the long term. A survey conducted in 1999 showed that individual investors generally believed that the next ten years would bring them 19% gains - almost the same as in 1975 Twice the average annual return of 11%. The recent decline in the stock market will reduce people's optimistic expectations, but everyone still seems to have some luck. Economist Anthony Ogoyun, who is responsible for formulating the fiscal plan, said: "I think everyone's expectations are still a bit too high and have not yet dropped to a reasonable level. Unless the market completely chills people's hearts, everyone can Face reality rationally, and reason is often short-lived.
”
If your expected income target cannot be achieved, you may engage in venture capital and buy value-for-money stocks like IPOs, hoping to bring you huge profits in the short term. If you fail, , may not only fail to achieve the expected target, but even the average annual rate of return of 11% will be ruined.
If you set the income target more realistically, you will be more likely to achieve the expected target. Your expectations are reasonable. Although it does not fully satisfy your wishes, it can at least guarantee that you will get a return.
If the rate of return exceeds the expected target, you might as well regard it as an additional bonus and take it. With it, you can go to the beach for vacation, without trouser legs, walking on the beach with bare feet, and while walking, you can pick up the colorful shells that are gifts from the sea into the basket. Isn't this a very pleasant thing? Something?