The following is the common sense of financial management that ordinary people should know:
1. The deposit interest rate is not the only source of income. In addition to bank deposits, there are many investment methods such as stocks, bonds, real estate, gold and so on, which can obtain higher returns.
2. Planning and budgeting are the basis of financial management. Make a monthly income and expenditure plan, arrange expenditure reasonably, control expenditure and prevent excessive consumption.
3. Long-term investment is an important way to obtain stable income. Regular fixed investment in funds, stocks, etc. Long-term persistence can get good returns.
4. Risk is directly proportional to income. Although investing in high-risk products may have higher returns, the risks also increase accordingly. You must consider your risk tolerance before investing.
5. Diversification of investment is an important means to reduce risks. Don't put all your money on the same investment product, diversify your investment and reduce your risk.
6. Insurance is an important risk management tool. Buying insurance can provide you and your family with protection against accidents and diseases.
Be careful when lending money. If you have to borrow money, you should choose the right loan product according to your repayment ability to avoid exceeding your repayment ability.
7. Steady financial planning is the key to achieving financial goals. Make a long-term financial planning, including savings, investment and retirement plans.
8. Learn to distinguish between true and false wealth management products. It is necessary to carefully check the legitimacy, yield and risk of wealth management products to avoid being deceived.
9. Learn to invest in fundamental and technical analysis. Understanding the fundamentals of the company and the technical aspects of the stock market can help investors make wise investment decisions.