The purpose of financial management is to change the original money into more money through investment. But investment needs to bear corresponding risks. Therefore, rational allocation of investment projects and balance of risks and benefits are the key to financial management.
For example, the extremely conservative practice of putting all the money in the bank, although rational, is definitely not within the scope of financial management. It is also irrational to put all your money into high-risk markets such as futures, because no amount of money can disappear overnight.
Therefore, according to the amount of money, we should allocate it reasonably, take out some money as deposits and choose to invest in stocks, bonds, funds, real estate, precious metals and so on. It is relatively rational to spread risks.