Financial management is risky and investment needs to be cautious. The most important thing to know before financial management is the risk of financial products. When managing money, you need to prepare emergency funds, reserve necessary living expenses, and don't borrow money to manage money.

First, financial management should understand basic common sense.

Common sense 1: Can you take financial risks?

There are many kinds of financial management, such as current, fixed term, bonds, funds, stocks and futures. Before financial management, it is necessary to make clear their risk ranking and whether they can bear the consequences of risks.

All kinds of financial management rules are different. You should know the corresponding rules before you shoot, instead of blindly following others and listening to what others say. For example, a bank's time deposit guarantees the principal and interest, while both bonds and funds are at risk of principal loss.

Common sense 2: Prepare emergency funds before financial management.

Some investors like to put all their money into financial management, but this is not correct. In addition to current financial management, other financial management has certain term rules, and it is impossible to operate and circulate within a certain period of time. If you don't prepare emergency funds, you will be in an awkward position when you encounter something.

Common sense 3: set aside necessary living expenses before financial management.

Before managing money, we should consider the basic expenses for a period of time in the future. This money can guarantee our basic living security, otherwise we will face the situation that we can't spend all the money.

The daily living expenses are easy to calculate, and the monthly expenses can be calculated according to the past consumption situation, and it is reasonable to reserve 10% on the basis.

Common sense 4: Never borrow money for financial management.

Financial management is a way of thinking, making rational use of the money at hand and making it flow. When I first started to learn financial management, there was no introduction, and many places would make mistakes. So I have to study within my tolerance. I can control how much wealth I have, but I can't exceed my ability, otherwise it will only bring harm.

Second, financial management should not be impatient.

Financial management, like work, requires long-term study and accumulation. Financial management includes taking risks. Don't be impatient and impulsive, learn to act slowly. Otherwise, it will not be rewarded, and it will bring disaster.

We should maintain a peaceful attitude in financial management, regard financial management as a way to save money, not as a tool to get rich. If we work hard, open up sources and reduce expenditure, wealth will accumulate more and more.

At the same time, financial management should learn to allocate funds reasonably, spread risks, don't put eggs in the same basket, mix high risks with low risks, stratify funds and share risks equally.

Financial management is something that needs lifelong learning. You can progress and grow in your study, and you can become a financial expert in time.