Be cautious when investing: I suggest you ask an investment expert. There is a saying that choice is greater than effort, and choice is not in vain.

How to choose the right financial management method

There are many financial management methods that suit you now: savings, stocks, insurance, collection, foreign exchange, real estate and so on. Faced with so many financial management methods, the most critical issue is to choose the one that suits you. The factors that affect people's choice of reasonable financial management methods are as follows:

1, occupation

The occupation you are engaged in determines the time and energy you can spend on financial management, to a certain extent, it also determines whether the information sources of your financial management are timely and sufficient, and it also determines your choice of financial management methods.

For example, if your occupation requires you to travel frequently and have little time to read newspapers or TV, then your knowledge of stock market information is very limited, so your portfolio will be affected by your occupation.

2. Income

Financial management must first have a certain economic foundation, which is wage income for ordinary families. How much your income determines your economic strength. Those karate-style financial management methods beyond your own financial resources are not suitable for ordinary families.

So many financial experts warn people that 1/3 of income is used for saving, and the rest 1/3 is used for investment and wealth creation. According to this calculation, your income determines the final number 1/3, which in turn determines your financial choice.

3. Age

Age represents experience and is an intangible asset. A person at different ages has different responsibilities, different needs, different aspirations and different endurance. Therefore, different age groups have different financial management methods.

4. Personality

Personality determines personal interests and knowledge, and also determines whether it is conservative or cheerful; Whether it is cautious or risky determines its suitable financial management method. There are many ways of personal finance, each with its own advantages and disadvantages.

For example, savings is an important traditional financial management method, and national debt is the safest among many financial management methods. The charm of stocks lies in high returns and high risks. The preservation and appreciation of real estate is the most attractive, while insurance attracts people by preventing risks and future benefits, and so on. Every financial management method can't satisfy everyone in all aspects, and it can only be decided according to personal personality.