A Probe into Personal Finance (1)

Financial management and life

Take out insurance for yourself and your family, especially if it is within your ability. In this way, there is a guarantee. Moreover, you also need to invest in your own “spirit and career”, this insurance is not ordinary insurance. Rather, the accumulation of knowledge and the improvement of ability must be improved every month.
To have a correct concept of financial management, temporary enjoyment can be moderately reduced, and the proportion of household deposits needs to be appropriately increased. Every year, you need to deposit 30% of your income into the bank, then use 30% as a reserve fund, use 30% of your living expenses, and buy 10% of insurance. Of course, this ratio can only be used for participation, but these four points are worth learning. Especially for young people who have just stepped into society.
Often there is not much money in school, and most classmates may be financially nervous. After entering the society, the economic conditions have been greatly improved, and some will continue to buy various items that are not practical or rarely used for a short time. It’s just a little fun when placing orders and unpacking, but in fact this is an invisible overdraft of life in the future.
The meaning of a person’s life is not just to enjoy, but to realize himself. Unless, you believe that you are a worthless person, I think most people expect that they can have a better life, and expect their income to rise rapidly. So, in order to do this, then some preparation is needed. Not only the preparation of knowledge, but also the preparation of money.
With enough preparation, then, when the opportunity comes, you can seize it. Some things are often seized by one opportunity, and many can be seized. But it didn’t hurt to miss the opportunity. It is important to plan money from now on.
Some people may say, what should I do if I can’t make much money now? Well, financial management is not the most important account for you. The most important point is to find a job that really helps your personal growth. Or if you ca n’t find it at the moment, you can make ends meet. Remember, you must give yourself some time every day to grow up, in order to find your new job.
Don’t spend most of your spare time on useless entertainment. It’s not that you can’t be entertained, but to earn more money and experience a better life, you have to restrain yourself in times of difficulty.

Active investment

Under suitable economic conditions, there must be an active investment. At the same time, I have to learn some financial related knowledge by myself. In this way, there is at least the possibility of ‘letting money make money’.
For women, they should buy some value-preserving products every year, from gold bars to real estate to invest. Of course, the goal of buying a house every year is relatively difficult, but buying some jewelry every year is not extremely difficult. As far as I know, certainly not everyone can buy it every year, but! It is not difficult to learn enough financial and financial knowledge every year to increase your investment ability.
Every year fitness is also essential, many people feel busy working without time. However, if there is always time to exercise at least once a week, or walk or jog for ten to twenty minutes on the way home, this will not particularly affect the quality of life. In a city where I worked before, I often saw people running at night.
However, there is one important point of active investment that must be paid attention to, that is, to have clear and achievable financial management goals. Just like a work plan and a study plan, only when you have a plan can you have a ruler to control your inner greed.
Generally speaking, most people’s earning power is relatively constant within a certain period of time. For example, there were 100,000 income last year. After hard work, this year, there are 120,000 to 150,000 income. This can be expected. But if someone who earned 100,000 last year told you, I decided to earn 10 million this year. This is not particularly likely.
Therefore, we must consider our long-term thinking and habits, as well as the resulting ability. Don’t expect to change your behavior and income patterns immediately, it’s very difficult. Instead, they should formulate goals in a scientific manner and pay for relevant efforts that they can do. In this way, when summarizing each month, you will see your progress and gain enough sense of accomplishment, and you will be more motivated to stick to the plan for one year.

Constant standards of financial management

Many people’s financial management or investment fails because they cannot resist the temptation of the market.
For example, if you earn stocks, you still want to earn them, and you lose your reconciliation. If you want to hold stocks or not sell them, you must wait until they rise back to the cost of buying. It seems that there is no compensation, but it is a waste of possible opportunities. Moreover, some stocks are difficult to rise back within a few years. If it does not go back, would it be a waste of other money-making opportunities?
Therefore, when managing finances, you must give yourself a constant standard. For example: when you earn 5%, you must throw it. When the 2% is lost, it must be thrown out. Of course, some people don’t set stop loss and take profit lines, but some of them are stock traders who pick one out of ten. The ability to correct this position alone is to pick one out of hundreds of miles, and then pick one out of these people, and their ability to trade stocks far exceeds that of others, so they can not set stop loss and take profit. If ordinary people do not know whether they have the ability in this respect, they are regarded as not having it. Otherwise, if it fails, the consequences will be worrying.

Other articles in this series

A Probe into Personal Finance (2)
A Probe into Personal Finance (3)
A Probe into Personal Finance (4)
A Probe into Personal Finance (5)

Leave a Reply

Your email address will not be published. Required fields are marked *