Financial management is the process of rationally managing your own finances in order to better achieve your life goals . In order to achieve your life goals, you must manage your current and future cash flow, so that your assets can achieve steady and continuous appreciation on the basis of maintaining their value. Let us have money in our wallets at all times, and the ultimate goal is to achieve financial freedom and live out ourselves.
Many people don’t save, don’t manage money, are a moonlight clan, have wine and are drunk now, and they are very happy to live like this. Why should they save part of their income? The answer is simple. We have to make plans for future consumption. These consumptions are: marriage, pension, children's education, parental support and so on . Moonlight, what is the responsibility to support the future, so financial management is the act of saving in the present for tomorrow's life.
People have various expenditures throughout their lives. Financial management is to allow us to deal with this living expenditure more calmly. The specific expenditures and needs are as follows:
First: Family emergency expenditure needs. Any family will have unexpected expenses, such as sudden illness and hospitalization of family members; temporary unemployment, resulting in income interruption; accidental injury accidents leading to injuries, etc. At this time, we need a sum of money to cope with these accidents, and emergency funds must be prepared to be prepared.
Second: respond to the needs of buying a house, getting married, and having children. For young people before the age of 35, the main purpose of financial management is to buy a house, get married, and have children. These all require a large amount of expenditure. Only by starting to save and manage money earlier can we face these more calmly.
Third: respond to the needs of old-age care, children's education, and support for parents . For middle-aged people aged 35-60, the main purpose of financial management is to save pensions, pay for children's education, and support the parents of both spouses. These are not small expenses. College education costs about 50,000-70,000 yuan a year. Family expenses, etc., are still very stressful for ordinary families.
Fourth: to meet the needs of wealth appreciation . Everyone hopes that their assets will increase in value on the basis of early preservation, and that the family’s wealth will increase faster, so that the family’s living standards can be improved. To this goal, they have to spend a portion of their money for investment, such as investing in stocks and funds. , Wealth management insurance, etc., multi-directional investment, while diversifying risks, obtain good returns.
Fifth: Prevent unexpected demands . There are unforeseen circumstances, people have misfortunes and blessings, and there will always be unexpected things that may cause fatal harm to family wealth. We can transfer risks through insurance. Accident insurance, critical illness insurance, medical insurance, and life insurance all need to be reasonably configured. Hold up an umbrella and put on bulletproof vests for family wealth.
Sixth: Responding to the needs of wealth inheritance . Every parent hopes that their children live well and live easily. I hope that when I leave this world, I can leave a certain amount of property to my children so that they can live more prosperously. my country has not yet begun to levy inheritance taxes. In the future, legislation on property tax and inheritance tax will most likely advance steadily. In order to keep wealth from shrinking, life insurance is a good way to avoid inheritance tax. All these need to be planned in advance.
In the face of these needs, we have to figure out and understand, according to these different needs, start saving and financial management as soon as possible. Learn about stocks, funds, bonds, insurance and other related knowledge in advance . At the beginning, we may not have much money and the effect is not obvious, but we must start early. Time is a friend. To be a little turtle on the road of financial management, you can go slower. But we must keep walking, we will laugh happily when we reach the end.
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