Financial management refers to the management of finances (properties and debts) with the purpose of maintaining and increasing financial value.

Financial management is divided into corporate financial management, institutional financial management, personal financial management and family financial management.

The benefits of learning financial management: 1. To put it bluntly, you want your existing assets to increase in value, and asset appreciation is the common goal of every financial manager. Financial management is the process of rationally allocating assets and striving to continuously accumulate wealth.

But we should also understand that wealth appreciation is not the ultimate financial goal, but a means for us to achieve our life goals. Financial management is divided into four stages: accumulation of wealth, protection of wealth, appreciation of wealth, and distribution of wealth. Different age groups

There are different stages of financial management needs. For example, young people who have just graduated are in the wealth accumulation stage. Their biggest investment should be their own investment, such as participating in more training and having more skills to make more money.

For some people with strong financial strength and investment ability, a specific amount should be determined for the appreciation of assets.

2. Ensure that you will have adequate support in your future. With the advent of an aging society, formulating appropriate financial plans as early as possible to ensure that you live an independent and prosperous life in your later years is a common problem faced by modern people. Retirement needs to be considered in pension plans.

Issues such as age, expected annual living expenses after retirement, expected inflation rate, expected annual investment return after retirement, etc.

3. Guarantee the safety of funds. The safety of funds includes two aspects: first, to ensure that the amount of funds is complete; second, to ensure that the value of funds does not decrease, that is, to ensure that funds will not suffer losses due to losses and depreciation.

A true investor must have an attitude of moderation, not to make more money, but to be clear about the risks and returns of financial products.

For example, when investing in stocks and funds, you may have a yield of dozens of percent in a good situation, but you may lose dozens of percent in a bad situation. The upper and lower limits are very wide.

As for bank financial products, the best return may not be high, only a few percent. At least the principal will not be lost. Its upper and lower limits are very narrow, but the probability of good or bad happening is time-sensitive.

For a period of time, many people buy funds because people generally believe that the probability of something bad happening to it is relatively low, or that the probability of something bad happening within one to two years is relatively low, but after two years, the probability of something bad happening may happen.

It is relatively high, so we must not only have a good grasp of the risk of probability, but also have a certain understanding and grasp of the timeliness of probability.

4. Providing education funds to support parents and children. It has been a tradition in China since ancient times that the elderly can be supported and the children can be cared for. The cost of these two aspects in modern society is very high, which is a big challenge for each of us.

The age of the parents, the time when the parents retired, the current age of the children, the age at which they are expected to go to college, whether there are any plans to study abroad, which country to study in, and how much money it will cost. These are all investment goals, such as making an education fund plan.

, the child is three years old this year and will go to college at the age of 18. The cost of college per year is now 20,000 yuan, and is expected to increase at a rate of 5% per year. If the investment return rate is 5%, a monthly investment of at least 298 yuan will be required from now on.

5. Prevent accidents. A correct financial plan can help us minimize losses when risks arise, such as accidental injuries. The so-called accidental injuries refer to physical injuries caused by unintentional, external, and unpredictable reasons.

to severe traumatic events.

Since accidental risks are unpredictable, they cause great harm to the family and make people feel the fragility of life. Therefore, accidents, such as serious illness, natural disasters, etc., should be considered in the process of financial management. To achieve this purpose, we can buy insurance

Wait to prevent accidents from happening.

6. Improve the quality of life. The economic situation is gradually improving, which is the basic guarantee to improve the quality of life and increase the fun of life. Our goal in investment and financial management is to keep our financial situation in the best state, meet the needs of all levels, and thus have a happy life.

Life, this is also the ultimate goal of our financial management.

Facts have proved that money is not the only condition for success. The root cause of people's poverty is ultimately the poverty of thought. Therefore, if you want to get rich, you must first make your mind flexible and figure out what the real purpose of your financial management is.

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