In fact, as an ordinary person who has never had the concept of financial management, the most important and basic thing to become a financial management expert is to first clearly distinguish what are assets?

What are liabilities?

It may be difficult for us to understand using these professional terms, so let's put it in a simple way, that is, when we consume, which are rational consumption and which are emotional consumption? Rational consumption is what we must use in life, and

Perceptual consumption is something that we feel we should need through certain sensory stimulations, but in fact we do not need it.

As long as we can distinguish the relationship between the two, we can say that we have entered the door of financial management.

Of course, if you want to become a master of financial management, you also need to pay attention to the following points: 1. Understanding index funds is also the basis of financial management, so index funds are a very important link. Although knowing index funds does not necessarily mean you are a master of financial management, but

Experts in financial management often know index funds. This is because index funds are an iconic product of financial management. Simply put, index funds represent the sum of all outstanding companies in a country. In the investment process, index funds can be very good.

helped us achieve higher returns than banks.

2. I believe that many people know about real estate trust funds. Even those who know some financial management knowledge do not know what real estate trust funds are. In fact, in simple terms, real estate trust funds have only existed for more than 60 years in the United States, the most financially developed country. In our country, it is even more

It has just started, and there are only 10 real estate trust funds in our country. So real estate trust funds represent the opportunities given to us retail investors by some large real estate operating companies.

3. Know how to invest in stocks. Stocks have been around for many years. I believe there are many old investors in our country. However, even old investors who have invested in stocks for many years do not necessarily know that they understand stocks. Some people have even lost their money, but

What I want to say is that people who really know how to invest in stocks will always be masters of financial management. For example, value investing in stocks is an investment method that even Buffett recognizes.