Einstein once said that the most powerful force in the world is not the atomic bomb, but compound interest+time.
Many financial novices "can't see clearly" the various investment products in the market. A very important reason is that the foundation of financial management is not done well, and I don't understand the time value of money and the power of compound interest.
Compound interest income 1 10,000 yuan
Second, financial management should learn to appropriately reduce income expectations.
The easiest way to get happiness in the investment market is to reduce the expected return. There is a saying that is very good. Without too much hope, there won't be too much disappointment. According to the incomplete statistics of Jindou, most people will subconsciously set their income expectations near the market average. This is actually very reasonable. After all, the proportion of people who can get higher than the average income is actually very small, so it is often easier to relax and take the average income as the investment goal.
Third, investment should not be concentrated, and small-scale dispersion is the safest.
Everyone knows that eggs are not put in the same basket. No matter any wealth management product, there are more or less risks. When the novice does not have the ability of risk assessment, it is one of the most effective ways to reduce the risk by choosing small-scale diversified investment. Of course, we should learn the basic knowledge of financial management at the same time, and we must know the financial products we want to invest like the back of our hand. You can't say that you can invest indiscriminately by diversifying your investment.
Four, financial management should accumulate smooth information channels.
The investment and wealth management market is changing rapidly. If there is no smooth information channel, it is impossible to grasp market information in time. Therefore, in the process of financial management, we must keep the information channels open, pay close attention to the changes of national political and economic policies at any time, and obtain relevant market information in time. A more direct method is to grasp market information through various media platforms. Nowadays, smart phones are very popular, so it is convenient to download an app to browse financial information.
5. Basic financial management products.
There are many wealth management products now. Generally speaking, we think that stocks, futures and foreign exchange investments are high-risk investments. Fixed-income investments such as bank deposits, house rent, insurance and P2P are low-risk investments. Novices should reasonably match wealth management products according to their age, family structure, wealth and needs. Ensure proper liquidity and profitability. However, for most people, it is more reasonable to choose a stable wealth management product that has every creditor's right in kind and can be withdrawn at any time through the transfer of creditor's rights after investment.