1. Investment and financial management objectives are unclear.

Investment and financial management first need to determine a financial management goal. Why manage money? If you set a goal, you are halfway there. As for financial goals, many people will say so. I want to save some money for marriage, I want to raise education funds for my children, I want to buy a house and a car, and I want to leave some old-age security for my retirement. Indeed, these are very good financial wishes, but they are not clear financial goals. Have you ever thought about whether to buy a house with 80 square meters of two bedrooms and one living room or 130 square meters of three bedrooms and two living rooms? Buy multi-storey, small high-rise or high-rise? Are you going to buy it in inner ring, middle ring or outer ring? When are you going to buy a house? When we choose financial goals, we often just give a vague concept, and the financial results cannot be accurately calculated with money, and there is no specific time limit for achieving the goals. Such a vague concept can only make us in a utopian state, and we can't make a suitable financial plan. Even if there is a financial plan, it will make the plan look quite blind and empty.

2. Personal target income expectations are too high.

Every financial manager will set his own financial goals, hoping to realize his dreams through certain financial means and time accumulation. But not all the goals can be achieved, and some goals are out of reach for many people. For example, a small employee who earns only 2,000 yuan a month plans to buy a house worth more than 2 million yuan and a car worth 200,000 yuan in five years. Although these are all his dreams, the probability of realization in just five years is almost zero. The reason why financial managers expect too high income when setting financial goals is because everyone has desires in their hearts, which will expand with unrealistic ideas. However, this is not a good thing for investment and financial management. Too high a target expectation is unrealistic at first, which will cause the financial manager to be in a fantasy state all the time and there is no corresponding plan to achieve this goal. Secondly, it will make people use more risky tools in financial planning to get more benefits, which is not in line with the principles of safety, stability and value preservation and appreciation that financial activities have always followed.

3. Often only manage money for a single goal.

There are various financial goals, such as buying a house, buying a car, getting married, educating children, and providing for the elderly after retirement. These basic financial goals are problems that we will encounter in our life. However, in the general process of financial management, these goals are often independent and separate, that is, only for a single goal, which is also a common mistake made by financial managers when formulating financial management goals. Because these goals are at different stages of our life cycle, at a certain stage, our financial management activities are only because there is a special demand at that stage. While meeting this demand, we will not think of other potential needs that may exist in the later life. Only when we are about to enter the next life cycle and this potential demand is imminent, will we begin to realize the necessity of financial management for this potential demand, but at this time we have lost the best financial management opportunity. What we lack is to set financial goals from the perspective of human life, so the results of financial management are often ignored, and the effect of financial management can be imagined.

(B) Incorrect methods make the financial management process lack of control.

1. There is no detailed revenue and expenditure account book.

The ledger is the best tool to record our income and expenditure. It can not only reflect our income and expenditure in detail, but also help us to carry out financial management activities. But in today's younger generation, few people are engaged in such troublesome jobs. Busy work is one reason, and the proliferation of electronic bills is also an important factor. There are detailed commodity names, quantities and amounts on the electronic bill, which makes the financial manager feel that he knows his own consumption like the back of his hand. But electronic bills are not suitable for safekeeping, and people get bored when they are confused. If you are bored, you won't spend time summarizing and sorting out electronic bills. Without summarized data, you can't grasp your financial situation, and because you don't refine the account book and classify it, you can't compare the data and find out the reason for the sudden increase in consumption.

2. The financial management process lacks control and adjustment.

Once the financial plan is finalized, the financial manager thinks that everything is all right. Every month, according to the plan, he deposits the funds in the bank, invests in the stock market and buys insurance, no matter how much money is left in the financial account, no matter what the current market situation is, no matter whether there are new financial products with higher income and risk rate. Because we only care about financial results. But sometimes, the actual situation of financial management is often different from that of financial planning, and sometimes even quite different. In the whole financial activity, financial instruments with high risk rate and large fluctuation, such as stocks, will rise and fall greatly. If we don't monitor the balance of our stock account in time, or don't sell the stock in time under the pressure of bad interest, it will cause huge losses and seriously affect the implementation of our financial plan.

3. Financial planning is often difficult to adhere to.

We have made great efforts to make a good financial plan, spent a lot of manpower, material resources and financial resources, and expect to get a financial result with a good idea. In the initial stage of investment and financial management, we will all be enthusiastic, because we yearn for our favorite financial management goals and feel that we are accomplishing a very great cause. However, the enthusiasm will gradually fade with the passage of time. At this time, we are likely to be greatly discounted when implementing financial planning. Sometimes, due to unexpected circumstances, the expenses of the month suddenly increase, which makes life very stressful. Therefore, the original financial funds of 1 000 yuan per month are only taken out of 800 yuan this month, hoping to make up for it after the well-off next month, but the situation is often that it may not be in 800 yuan next month. On the other hand, the realization of financial goals is a long process, not overnight. After more than a few months, I lost confidence when I saw that the goal of financial management was still far from me. In the end, I voluntarily gave up my well-planned financial plan.

(C) the choice of optional tools increased financial risks

1. The investment direction mainly depends on your own preferences.

Personal financial managers do not have professional financial knowledge and ability like institutional investors. We often apply our financial management funds to our familiar financial management tools, mainly because we are familiar with this tool and are handy to use, and because we are interested in it, we often pay attention to its trend, so that we can grasp the opportunity more accurately and have a higher chance of success. Using their familiar financial tools for financial management is also praised by some financial experts as the best financial management means. But at the same time, this financial management method has a very big defect. If you are good at high-risk and high-yield financial tools, such as stocks, then our final income will be very uncertain, and we will not be able to determine our financial goals. Moreover, if we invest all our money, once the economic situation deteriorates, we will lose everything.

2. Seldom use low-risk and high-yield tools.

When choosing financial management tools, wealth managers only value its risk and profitability (because financial management is a long-term behavior, liquidity is not considered for the time being), so they choose the financial management tools with the highest risk and profitability to invest. Almost everyone wants the financial tools they choose to have the best returns and risks, but often some financial products with big returns and small risks are ignored at the initial stage of launch. It is a recognized fact that the interest rate of bank deposits is low, but its security is high. Under the condition that the risk of national debt is almost not increased, the income is higher than that of ordinary deposits. However, at the beginning of the implementation of the national debt, no one responded and had to make an appointment to buy it. Similarly, the fund invests the funds it raises in different types of stocks, thus spreading risks and ensuring returns. Only recently have we begun to realize the advantages of the two financial management tools, so is there a better financial management tool that we are ignoring now?

Insurance is usually excluded from financial instruments.

Insurance means that when an event of force majeure occurs and the insured suffers huge losses, the insurance company will give certain economic compensation to help the wealth manager tide over the difficulties. It should be said that insurance is the most effective tool to prevent accidents and transfer investment and financial risks. However, in practice, investment and financial managers in China rarely consider this financial tool in their financial planning. On the one hand, we misunderstand insurance as a business that only loses money. If the force majeure event does not happen, what we have paid will not be rewarded. Moreover, we believe that the probability of force majeure events is very small, and it will not be met so skillfully, and there is a fluke mentality. On the other hand, insurance companies are smiling when they apply for insurance, but they are indifferent when they claim compensation. Even if the financial manager has an accident, he may not get compensation, and he is full of bad feelings about insurance as a financial management tool.

(D) Narrow concepts limit the rate of return on financial management

1. The concept of investment is limited to traditional fields.

What financial tools are there? In what areas can I invest in financial management? When financial managers answer these questions, many will mention banks, insurance, securities and real estate. These are what we usually call traditional areas, or areas that we are already familiar with. However, if you continue to ask what new areas wealth management can invest in, the wealth management manager is expected to scratch his head for a while. Because these markets have existed in the traditional investment field for a long time, the standardization of investment makes wealth management funds have great certainty and predictability in maintaining and increasing value, but their yield is close to the average profit level of the market. If limited to traditional financial activities, some high-expectation but reasonable financial goals, such as buying a house and a car for working families, may not be realized.

2. blindly following the trend has become a financial fashion.

Personal financial managers know little about investment and financial management, and have little time to study various financial management tools. When we choose the direction of financial management, we often use such a method, which field is the hottest now, which field has the highest income now, and where all the money is invested. In the mid-1990s, the stock market soared, and the Shanghai Composite Index broke through 2200 points in one fell swoop. Some people get rich overnight and earn millions of dollars every day. How many people are jealous and put money into the stock market? As a result, the market plunged below 1 0,000 points. This blind way of following leads to the fact that the market value of most people is less than 30% of the invested funds. Later, the property market became hot again. Real estate speculators jumped out one by one, and individual investors did not want to be outdone to join the ranks of real estate speculators, which led to rising house prices. However, in the recent inventory process, it was found that many buyers did not make profits, but suffered a slight loss, most of which were supported by rent. It can be seen that blind obedience is a fashion in today's financial circles, but all fashionable things are not necessarily reliable.

3. Investment and financial management are often replaced by speculation.

Under the premise of ensuring the safety of funds, investment makes the financial management funds grow steadily on the original basis through reasonable planning, while speculation is usually based on a small bet, willing to take huge risks and make sacrifices in order to obtain greater returns, although this probability is quite low. Financial management should be an investment behavior, but it will often be unconsciously replaced by speculation. To give a very simple example, people who make stocks can make some money at first, but if they basically lose money in the long run, a very important reason is that at the beginning of stock trading, everyone was very cautious, carefully selected stocks and did a lot of research and analysis. Later, when I felt that I had enough experience, I abandoned everything and judged the rise and fall of individual stocks by personal intuition. Moreover, they are getting bolder and bolder, always buying and selling in large quantities, which is completely speculative. Once the investment behavior of financial management is replaced by speculation, the whole financial management plan will be in danger.

Third, personal investment and financial advice.

(A) to develop a comprehensive and appropriate financial management objectives

1. brainstorm and consider financial planning comprehensively.

In order to meticulously make financial plans and determine financial goals, we'd better adopt "brainstorming method" or "Delphi method". We gathered all the family members, sat down and wrote down all their wishes and goals. After many rounds of communication and transmission, we finally screened out the common goals that everyone agreed on. This is not only a very good opportunity for family communication and harmony, but also a good arrangement and summary of financial goals. Financial goals should include long-term goals and short-term goals. Short-term goals are easy to think of, because they are urgently needed in reality, while long-term goals are usually potential, which requires us to calm down and think about the future. To sum up, the general goals of life mainly include marriage plan, buying a house and car plan, family support plan, parenting plan, children's education plan and retirement plan. In addition, of course, sometimes there are some special plans, such as planning a trip to Europe and buying a brand mobile phone with the latest fashion. Only when these goals are considered together, can we leave no regrets and cover everything, can we reasonably control our own financial funds and use them in different financial accounts, and can we better ensure a more comfortable and beautiful life now and in the future.

2. Set financial goals to match personal income.

When we sum up all the financial goals, another thing we have to do is to verify their rationality. The best way is to refine and quantify the financial objectives as much as possible. It is best to be precise about how much money we need to invest every month and how much income we can get every year, so that we can compare our goals with the actual economic situation. If the gap is quite large, it shows that the financial management goals we have set are unreasonable and the possibility of achieving them is very small. At this time, it is necessary to adjust the financial goals. One way is to completely deny it and set a new goal. Although this method is thorough, it takes a lot of time and energy, unless financial planning is too outrageous, it is generally not recommended. Another method is to modify the financial objectives appropriately. First, the financial objectives are sorted according to importance and timeliness, so that financial funds can be applied to the most important and first realized objectives, and secondary objectives can be considered to be excluded, but the latter objectives should also be planned at the beginning. In short, when making financial goals, we must consider our own financial situation, keep what is appropriate and necessary, and eliminate the blind and utopian, so as to help us truly realize our dreams.

3. Financial objectives should be achieved in stages.

After determining the appropriate financial goals, the next step is to divide the financial goals into stages. Because it takes a long time to achieve a financial goal, some goals may be as long as 30 years, so we must divide the financial goal into small pieces like cutting a cake, that is, make small goals in chronological order on the basis of big goals. This can not only control the completion of the goal, but also give us great encouragement to stick to it, because we often accomplish phased goals. Moreover, because people have life cycles, not only the goals of different life cycles are different, but also the income and consumption will be very different. In the youth stage, almost all financial goals are concentrated in this period. If we don't plan and use funds rationally, we will lack funds and have to give up some goals. When people reach middle age, their income is high and their expenditure is relatively stable, so they can make more preparations for pension planning. Therefore, we can't just allocate financial management funds to each cycle of life by year, which is neither reasonable nor realistic. All financial goals must be classified by stages, and different goals will reach different percentages at different stages.

2) Manage and monitor financial accounts at any time.

1. Clever classification and good attendance record analysis.

The first and best way to manage money is to be diligent in bookkeeping, which can count personal income and expenditure, and then analyze the financial situation and economic structure of the wealth manager. Of course, being diligent in bookkeeping doesn't mean remembering everything. We can fill in the daily income and points according to certain categories by day, and then summarize the data every month. When it comes to classification, we don't have to make balance sheets and cash flow statements like professionals. We can simply group projects. Income can be divided into work income (salary, bonus, subsidy and welfare), investment income (interest, dividend and rent) and other income (bonus), and expenditure can be divided into daily expenditure (which can be subdivided into food, shelter and medical treatment), investment expenditure and other expenditures. The purpose of doing this is to enable us to find out the general reasons when the economic situation is abnormal in the future, so as to take corresponding measures to effectively control it. In addition to doing these statistical work, we should often analyze these data, usually once a quarter. Attention should be paid to skills in the analysis, which can be compared vertically by month, and horizontally compared with the data of this quarter and the same period last year is more accurate. For example, there will be a year-end bonus at the end of the year, and the income will increase greatly, while there will be a big expenditure at the beginning of the year because of the Chinese New Year. These abnormal changes in income and expenditure should be taken into account in the analysis.

2. Monitor your financial account from time to time

When we put our financial management funds into various investments, we have already started our financial management plan. In order to avoid risks, it is best to apply financial funds to different financial tools, which involves the issue of account management. Each account should be separated independently, otherwise it will lead to the confusion of book funds and the borrowing of funds between accounts. In principle, the funds of each account should maintain a continuous growth trend. On the one hand, a part of the monthly income will be extracted as a new capital injection, on the other hand, it is the income obtained from the original capital investment. But not everything is planned. We must always monitor our financial accounts, especially those that invest in high-risk instruments. By comparing the market value of this month and last month, we can calculate the rate of return and compare it with the refined target. If it is found that the book funds have a serious shrinking trend, or the income after decomposition can not reach our expected goal, it is necessary to analyze the reasons for the shrinking and quickly judge whether to continue holding or decisively selling. At the same time, it also reminds us that we should always pay attention to the macroeconomic situation and the situation of various industries, and look for newer and better investment and financial management tools to help us get more benefits or reduce more risks.

3. Investment and financial management are very important.

Everything must be done in the end, and so must investment and financial management. If you decide to use 20% of your monthly income as a wealth management fund, you must insist on extracting each income in proportion and putting it into a wealth management account. Note that the income mentioned here is not only salary income, but also income from various sources, and it must be completed within a financial management period of up to 30 years. We can think that this is a 20% tax levied by the government. Don't think about it after entering the wealth management account. Except in special circumstances, we are not allowed to think on the account. This will surprise you when you retire. It turns out that I already have such a large fortune. In fact, the main source of financial management funds is our monthly investment, and interest only accounts for a small part. Therefore, if you can't stick to your financial plan and invest as planned every month, you can't achieve your financial goals. Philosophically speaking, the investment in financial management funds is an increase in quantity, and it is a catalyst after a long time. When the equivalent accumulation reaches a certain level, it will become a qualitative leap. Without quantity, there is no quality. It can be seen that the persistence of investment is often the most important factor for financial success.

(C) Choose diversified financial management tools

1. diversification of portfolio and risk

Portfolio diversification is not a new term for us, its purpose is to spread risks and get the best return, but we often have a wrong understanding of diversified investment. As far as investing in the stock market is concerned, some investors simply think that diversification means investing wealth management funds in "different" stocks. In fact, "different" should be different stocks, not different stocks of the same kind. If we like banking stocks, we will invest all our money in Shanghai Pudong Development Bank, Minsheng Bank, Bank of China and other stocks. Once there are unfavorable factors in the banking industry, the market of the whole industry will decline. In other words, although you put your own financial funds into each stock separately, you still haven't achieved the purpose of diversifying risks. So how should we diversify our investment? What should be the investment ratio of various financial instruments? In fact, there is no definite value, but it should be determined according to the specific economic form. Usually, if the three-year deposit interest rate can reach above 3.5%, we will put more funds in the bank to improve the safety factor of funds, but it is better to buy some wealth management products with similar interest rates, because the latter does not pay 20% interest tax, but the disadvantage is that we are not sure whether the interest rate can continue to be maintained at this height. Of course, we can't let go of government bonds or government-guaranteed corporate bonds, but we must ensure that their income is above 5%, because their holding period is generally long, and we need to avoid the risks brought by interest rate adjustment during the holding period. It is better to choose stocks than funds. Of course, we can also invest in different types of stocks ourselves, so as to ensure the safety of our wealth management funds and the coexistence of benefits.

2. The choice of financial instruments pays more attention to the long-term effect.

Investment and financial management is a long-term process. When choosing financial management tools, we should pay more attention to their long-term benefits. Some wealth managers covet short-term interests, frequently operate and constantly change their wealth management tools, which is not only risky, but also greatly increases the probability of decision-making mistakes caused by frequent operations. There are also opportunity costs and switching costs. Opportunity cost refers to giving up the benefits of the original financial instruments as a price when choosing new financial instruments. If we have a three-year bank deposit with an annual interest rate of 3.96% for two and a half years, and if we find a better chance and decide to use it to buy government bonds with an annual interest rate of 5%, then the opportunity cost of our behavior is that we give up the income with an annual interest rate of 3.96% for two and a half years and only get the current interest of 0.72%. Conversion to cost means that there is a time difference before and after the conversion of financial instruments due to a series of factors, and financial instruments will not bring us any benefits during this time difference. For a simple example, we have a rented house, and now we feel that the rent we provide is too cheap relative to the market. After the rent rises, the tenant will not renew the contract, so we need to hang the rental information to an intermediary company to find a suitable tenant. Before finding a tenant, the rented house is idle. Of course, we are not opposed to the transformation of financial instruments, but when we discover new investment opportunities, we must first analyze their costs and benefits, and emphasize long-term benefits in order to achieve our ultimate goal.

3. Establish and improve the personal safety mechanism.

Although we are biased against insurance, insurance is an indispensable financial management tool in the process of investment and financial management, especially in this age of frequent accidents and diseases. If there is any accident, although the possibility is still quite small, it will be a fatal blow to a family and it is likely to be wiped out. Establishing and perfecting the personal safety system can not only make up for most of our losses, but also create a good environment for our future life. Of course, when choosing an insurance company, we should first pay attention to its credibility, compensation degree and compensation efficiency to ensure that we can get our due share in time in case of accidents. At this point, Cathay Life is superior to Taiping, AIA and other insurance companies. How does insurance plan financial management in personal or family financial management? We should follow the principle that the proportion of people with the largest family income is also the largest, so as to ensure the safety of the main labor force in the family. In the choice of insurance products, we can mainly focus on medical care and life insurance, and it is best to avoid dividend-paying or savings-paying products, because their payment ratio is not high, but we should choose policies with fixed monthly expenses and large income to fully protect our lives. Of course, wealth managers with more fixed assets should also insure their own assets.

(D) innovative ideas under the principle of safety and prudence

1. Use your imagination to break through the traditional financial management field.

As western economists say, the market is an invisible hand. At present, the market capacity of traditional or well-known fields has become saturated, and the yield is close to the market average interest rate. In order to get more benefits, we must break through the existing market and look for better opportunities that others have not yet discovered. Of course, this innovative idea requires a genius-like imagination, but sometimes we can find it in ordinary life. Many people have a hobby of collecting, and these collections will gradually increase in value over time. Investment and financial management is also a long-term plan. Can't this be a stable and considerable income? The most popular collectible market is the philatelic market. Although it has existed for many years, it has not been fully valued by wealth managers, and only some stamp collectors are involved. The collection is not limited to this. Since the central bank stopped issuing coins and kept recycling them, one-yuan, two-yuan and five-yuan coins of all ages have become new favorites. A nickel of 1954 can now be sold for more than 200 thousand, which shows its huge income. In addition, cybersquatting and online shop opening have gradually become popular. And some innovative tools in traditional fields should also be included in our consideration. For example, the futures market has always been regarded as a huge risk and income. If options are introduced in the future, bulls will have the right to choose to execute or not to execute options. If they don't execute the option, they will lose a small option fee at most, such as -30 yuan, while if they execute the option, the income range is between 0 and +∞. According to foreign experience and probability, the average income is generally around 18%.

Believe in yourself and stick to your financial plan.

In the process of implementing the financial plan, we are often tempted by the unplanned market, and the continuous high income will make us have the impulse to buy blindly, thus changing the financial plan. However, there are three disadvantages in changing the financial plan: first, when making the financial plan, I have not carefully studied the unplanned market, and I am not familiar with the market situation, so it is very risky to rush into it; Secondly, because of limited funds, changing the plan will force some projects in the original plan to be suspended, resulting in loss of income, which is the opportunity cost and switching cost mentioned above; Thirdly, it is time-consuming and labor-intensive to adjust or even re-formulate the follow-up plan after changing the plan. So in general, we should stick to our financial plan, because as long as the plan is implemented smoothly, we can achieve the expected financial goals. And if the new opportunity risk rate of return is really large, we must first analyze whether its income can completely offset all our costs, including potential costs, and then make a decision. Another application of adhering to the principle is aimed at the existing financial management tools. If we buy a stock, our expected rate of return is 20%. When the income after excluding the handling fee reaches our expected goal or planned goal, we must sell it decisively and look for new low-priced stocks. Many wealth managers have a greedy mentality, and they want to go up again when they go up, but they don't want to throw it away. Therefore, they often miss the best time to sell, leading to long-term lock-up of stocks. They go up and down in the elevator every day, and their mood is good and bad. Therefore, once the plans and goals are formulated, they must be strictly implemented.

3. Avoiding risks is better than gaining benefits.

Every financial manager must put the principle of safe financial management first. As we all know, risks and benefits always go hand in hand, so how to evaluate an investment opportunity? Risk-return ratio may be a better indicator. Risk return rate = return rate/risk rate. The yield refers to the real interest rate. For bonds, the issue price, face value and nominal interest rate must be used to calculate, and the risk rate is the risk coefficient of bonds at all levels after credit rating, that is, the total amount to be paid (including interest) divided by the average amount actually paid. The higher the rate of return, the lower the risk rate and the higher the risk rate of return. According to the traditional concept, the better the opportunity, the better the risk-return ratio. However, the modern concept holds that no matter what the relationship between income and risk is, risks should be avoided as much as possible, because once some risks are formed, the consequences will be fatal. We would rather give up the income and reduce the possibility of such consequences, or in other words, even if there is no interest income, the long-term principal accumulation is a huge wealth for us, but we can guarantee that we will not take any risks to obtain this fund, and we are more willing to make such a decision. This is why Buffett, a securities investor who never wants to take risks easily, can become a stock god. As long as he deposits his money in the bank, he will be worth millions when he retires.

Four. Concluding remarks

For the emerging market of personal investment and financial management, this paper is only the beginning, and more scholars are needed to conduct in-depth research and discussion, and there may be different schools and debates. However, no matter how the financial management methods and means are, we should still abide by some basic financial management principles. For example, financial management must first ensure the safety of funds. For example, financial management needs to diversify investment and risks. For example, it is expensive to insist on financial management activities. Only under the guidance of correct financial principles can we formulate correct financial plans and schemes to help individual financial managers truly achieve their financial goals.