First, the definition of financial management
Financial management refers to an activity that individuals or enterprises manage and use their own property in order to achieve financial management objectives. Financial management objectives generally include increasing wealth, maintaining and increasing value, accumulating surplus, protecting risks and realizing ideals.
Second, the basic principles of financial management
1. Diversification: Don't put all your eggs in the same basket. Diversification can reduce risks.
2. Risk corresponds to income: the income of wealth management products is often proportional to the risk, and the higher the income, the greater the risk.
3. Long-term investment: investment takes a lot of time, and market fluctuations should not affect investors' mentality and need to be patient.
Third, financial management tools
1. savings: savings is one of the simplest financial management methods and one of the lowest risks.
2. Fund: A wealth management product subscribed by a fund company, which has the advantages of risk diversification and professional management.
3. Insurance: Take the risks borne by the insured by purchasing insurance and claim compensation from the insurance company.
Fourth, how to choose wealth management products
1. Understand personal financial status and investment objectives, and choose appropriate financial products according to your actual situation.
2. Understand the types, risks and benefits of products and choose appropriate investment products.
3. Pay attention to the fluidity of products. The liquidity of wealth management products is inversely proportional to income and risk.
The above is the basic knowledge of financial management. You need to learn these basic knowledge before financial management, so as to better grasp the financial opportunities.