The most fundamental method of investment and financial management is to "open source and reduce expenditure" and handle personal income and expenditure well.
Open source: adding new sources of income
● Increase your working time and workload in exchange for more labor remuneration.
● Improve their own labor ability and professional level, and achieve higher work efficiency.
● Expand foreign investment in personal assets and increase personal investment income and capital accumulation.
Reduce expenditure: reduce unnecessary expenses
● Reduce expenses, reduce unnecessary expenses, and consider whether it is really needed at present before shopping.
● Reasonable consumption, buy what you need according to your own economic conditions, and remember that "the most expensive is not necessarily the most suitable for you"!
● Borrowing and credit consumption, using first and paying later, and repayment by installments are modern personal consumption concepts.
When you invest in financial management, you should first make a thorough analysis of your current situation and financial strength, make a feasible financial management plan, and implement it effectively. Financial management requires care, determination and patience, and requires long-term planning and consideration.
Determine financial objectives:
Everyone will have different wishes, such as the need to travel abroad, the need for a bigger house and so on, and these wishes are very vague concepts, not detailed plans. Then, the first step of family financial management is to turn wishes into reasonable financial management goals.
The characteristics of financial management objectives are quantifiable, testable and timely. For example, I need to make my wealth reach 500 thousand (quantifiable and testable) within ten years (timeliness), and this goal has the above two characteristics.
To set a goal, we must first understand how many wishes we have. Please list these wishes with your family. Some wishes are impossible to realize. For example, I want to be the richest man in China within one year. This is obviously an impossible wish, so we should rule out such wishes and list only the parts that are possible to realize.
The next step is to gradually quantify these wishes. For example, I want to change a more spacious house, and after determining its location, area and other parameters, I can get a quantitative amount. These are the basic financial goals. After all the wishes are quantified, the total amount of all your wishes will be clear. Achieving all the goals is a long-term goal, which may even take a lifetime to complete. We must accomplish the set goals step by step.
Then around each specific goal, make a detailed financial plan, so that it has the possibility of realization and the direction of action. For example, monthly savings, annual investment income and so on.
At the same time, the establishment of financial goals must be adapted to the family's economic situation and risk tolerance to ensure the feasibility of the goals.
After the phased financial management objectives are established, financial management activities can be carried out in an orderly manner.
B. asset appraisal:
The purpose of evaluating family assets is to let oneself know more clearly the total amount of family assets, monthly income and expenditure, grasp the family financial situation, and analyze the ability and direction of financial investment.
Family assets refer to the net value of all cash, objects, investments, creditor's rights and debts legally owned by family members after quantification in currency.
Intangible things such as reputation, knowledge and social status, although also a kind of wealth, cannot be quantified by money, so they are not assets in financial management activities.
Family assets evaluation includes the following aspects:
Fixed assets (household goods, collectibles, real estate, automobiles)
Financial assets (cash, current passbook, credit card, stocks, funds, foreign exchange, bonds, insurance, other investments)
Creditor's rights assets (creditor's rights items)
After quantifying the items listed above with money, the net value is the actual total assets of the family. C, household income and expenditure and profit and loss
Family income is the net income after deducting tax payable, which is generally divided into several categories:
Fixed income (salary, bonus, subsidy, welfare, etc.). )
Operating income (rent, commission, etc.). )
Investment income (stocks, funds, bonds, etc.). )
Unexpected income (lottery, etc.). )
Household expenditure is the total amount of money paid by cash or credit card, which is generally divided into several categories:
Daily expenses (food, clothing, utilities, transportation, communication, support, etc.). )
Investment expenditure (stocks, funds, foreign exchange, bonds, deposits, insurance, etc.). )
Unexpected expenses (medical care, compensation, etc.). )
Consumer expenditure (tourism, medical care, shopping, etc.). )
The above classification of income and expenditure is not necessarily comprehensive, and may be different according to the actual situation of individuals. Classifying household income and expenditure by category is the first step of household asset management.
Family profit and loss refers to the financial situation of family income and expenditure, balance and so on. , usually can be expressed in the form of statements. This is the income and expenditure statement. Through this table, we can know the inflow or outflow of funds in a period of time, and make corresponding financial planning in the next financial cycle, so as to scientifically control the flow of funds and achieve the purpose of financial management.
D. Selection of investment projects:
Investment and financial management goals, choose the investment projects and strategies that suit you. For example, how much money you choose to save in a certain period of time is to buy a house, or to invest and start a business in a certain period of time to get a better return.
According to different investors, there will be different investment styles, which can be roughly divided into several categories:
Venture capitalists are willing to accept high risks in order to obtain high returns;
Ordinary investors are willing to accept normal investment risks in order to obtain a return higher than the general standard;
Conservative investors are almost unwilling to take risks, and the investment method chosen by such investors is generally bank interest. Generally, you can only choose the way of saving and investing.
There are two criteria to judge the risk tolerance, one is the family economic situation, and the other is the psychological tolerance. According to the risk tolerance, you can choose different investment methods and projects. E: financing:
Through the evaluation of family assets, the formulation of income and expenditure items and the determination of investment items, you can raise funds that can be used for family assets investment, not only cash you can use, but also borrowing. Of course, the debt you borrow must be within your tolerance.
There are many ways to borrow money, such as through relatives and friends, or through bank loans and so on. The loan amount can be comprehensively evaluated according to your current financial situation, expected annual income and investment project demand. In the process of lending, we should pay attention to two aspects. On the one hand, we should pay attention to the legality of lending. Financial management is different from speculation and needs to ensure the reliability of economic exchanges. On the other hand, the investment income of loan funds is greater than the interest income, otherwise it is meaningless to borrow, but it will waste time and energy.
F: the choice of financial institutions:
Financial management activities are inseparable from financial institutions, and each financial institution also provides services for individuals. Choosing the most suitable institution among different financial institutions will make financial activities more effective.
Here is a brief introduction to various financial institutions:
(1), bank
Banks provide customers with the most basic deposit and loan business. In addition, according to different banks, they also provide bonds, securities, funds and foreign exchange transactions for different customers.
Four state-owned banks: Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank.
Commercial banks: joint-stock or local commercial banks, such as China Merchants Bank, Bank of Communications, China Everbright Bank and Shanghai Pudong Development Bank.
Foreign banks: these banks are still in the initial stage of opening, but they have rich management experience in personal finance.
(2) Securities companies
Securities trading can mainly be entrusted. If securities are traded through banks, then securities companies may not participate. (3) Fund companies
It can mainly entrust fund transactions. If the fund transaction is conducted through the bank, then the fund company may not participate. (4) Futures companies
Provide commodity trading listed on three domestic exchanges.
(5) Exchange
Including real estate, gold, collectibles and other exchanges and auction houses.
(6) Insurance institutions
First, local social security bureaus provide basic insurance such as pension, medical care and unemployment;
Second, various commercial insurance companies provide life insurance, property insurance and liability insurance, such as China Life Insurance Company and Ping An Property Insurance Company.
(7) Other financial institutions.
For example, employees' unit funds. , we should pay attention to ensure the legitimacy of financial institutions and improve the safety factor of personal property. G. financial management:
Choose reliable management software to manage all financial activities under the premise of conditions.
The management contents include the formulation of periodic financial plans, daily financial records (revenue and expenditure bookkeeping) and regular financial status inquiries (revenue and expenditure list, investment gains and losses, etc.). ), real-time financial data statistics and so on.
This software is recommended here. This software can make financial budget completely according to users' needs, record daily income and expenditure and investment accounts, and summarize statistics with various detailed and accurate reports. You can also connect to the Internet safely, download the latest financial data (real-time prices of stocks and funds) from the website of Caizhi Company, connect with online banking, and get the professional financial electronic publication Caizhi Weekly provided by Caizhi Company for free.
According to these steps, you will feel that financial activities are not difficult, but there are still several issues that need your attention:
1, strengthen financial confidence and avoid giving up halfway;
2. Improve financial management skills, learn from practice and try to read relevant books;
3. Summarize financial management experience, learn from others, and master financial management dynamics;
4. Strengthen risk awareness, analyze forms and avoid risks;
5. Follow the financial management norms, do not speculate, do not rush for success, calmly invest, and manage scientifically.