"Why invest and manage money?" Isn't the so-called life just about finding a good job, working hard to make money, and reducing unnecessary expenses, so that the prince and princess can be happy all their lives? Managing money is tiring and tiring, so why bother managing money? - Because,

Only by learning to manage money wisely can we help us create a better life.

Many people will have this question, what is investment?

What is financial management?

Either people who are interested in this area will feel that investment and financial management are out of their reach, or they may say that they have no money, so why should they manage money or invest in it?

Another even scarier thought is that I am now getting a salary, living a worry-free or slightly wealthy life, and have no intention to do these things. If I have money, I will spend more, and if I don’t have money, I will spend less. Isn’t it great?

It saves trouble and doesn’t have to worry about, and you don’t have to worry about losing money.

In fact, people who have such an idea are wrong. Just like when you deposit money in a bank, do you deposit it for a purpose?

Or do you just want to avoid carrying so much cash with you and keep it safer in the bank? Because many people in the country have the same idea, China’s banking industry is the most profitable industry in the world. “In recent years, the figures of the entire banking industry have

It is indeed very beautiful. Especially this year, there is a banking industry that is outstanding, with high profits and very low non-performing rate. Everyone feels a bit unkind. The corporate profits are so low and the bank profits are so high. So sometimes the profits are too high, and I feel guilty.

I'm sorry to announce it." Not long ago, the president of another bank expressed such a sigh in the media, which made the inside story of the bank's huge profits public.

Generally speaking, a company's high profits are always something worth showing off, but Chinese banks seem a bit "ashamed" of it.

Everyone only saves money in the bank, so do you know why the bank gives you interest?

I believe not many people know that interest rate spreads are the biggest source of income for banks. In other words, banks are loan sharks. All money in the country is deposited in banks, so banks have a source of funds, so banks lend money.

Loans to businesses and individuals are what we now call lending and business loans.

Collecting high interest rates from lenders and paying low deposit interest rates. Statistics from the China Banking Regulatory Commission’s 2010 bank annual report show that net interest income, investment income and net fee and commission income are the three main components of banking industry income.

Among them, net interest income still accounts for 66%.

Investors put their money in banks, giving high returns to the banking industry, and getting a pitiful share. Have we seen or thought that the annual interest rate on bank deposits is 2.25%, and the CPI index (average price increase)

It's 2.9%.

What does this mean?

This means that what we could buy for 100 yuan now costs 102.9 yuan to buy the same thing.

And when we put money in the bank, if calculated based on the bank's one-year fixed deposit interest rate of 2.25%, every 100 yuan we put in the bank will become 102.25 yuan after one year, which is equivalent to 102.25 yuan in this year.

We lost 0.65 yuan (2.8%-2.25%=0.65%).

That is to say, even if we deposit money in the bank, we still cannot buy the same thing a year later.

What should I use to protect you and my wealth?

1. Fighting Inflation Many people who don’t want to worry about financial management always think: Just put their money in a fixed deposit, and you will get fixed interest every year, and you don’t have to worry about financial management. Why not? In fact, this concept is really

Big mistake.

Because the annual inflation rate will reduce the "real purchasing power" of money.

When the annual inflation rate is higher than the fixed deposit interest rate, it means that the value of money has shrunk.

Maybe you are wondering: Does this phenomenon really happen often? Yes, the probability of it happening is very high.

Especially in 2001, there was a trend of interest rate cuts around the world. Interest rates were getting lower and lower, but prices were rising.

Therefore, don’t think that it will be fine if you put your money in the bank! Continuous inflation will make your wealth shrink day by day. After a period of time, you may have changed from rich to poor! 2. Smart accumulation of wealth and financial management

In addition to passively fighting inflation, it can also actively help salary earners create wealth.

Financial management means knowing how to make money with money, so that you can accumulate wealth much faster than relying on a meager monthly salary to save your life.

Buffett, the second richest man in the world, has always been known for his simple personal style, and the house he lives in is no exception. He bought it in Omaha, Nebraska in 1958 for $31,500.

One of his friends said that Buffett's wife, Susie, recently spent $15,000 to renovate this house. Buffett complained: "This money will be used to compound interest. Do you know how much money it will have in 20 years?" Buffett's wealth is of course not only.

He only got it by saving his life. The key is his superb skills in playing the saving game, which can make wealth gather into a tower.

3. Is financial management really so difficult? There are various financial management tools, and investors can actually choose the tool that is most convenient for them.

For example: some funds, zero-risk capital investment allocation.

All in all, financial management techniques also need to match people's personalities.