There is a well-known proverb in Henan, "You can't eat and wear, and you can't expect to be poor all your life". Here, "eating" and "wearing" refer to consumption, and "counting" refers to the family income and expenditure plan, that is, financial management. When it comes to financial management, people usually think of either investing or making money. In fact, the scope of financial management is very wide, and financial management is to manage the wealth of a lifetime, that is, to manage the cash flow and risks of a lifetime.

First, the scope of financial management

1, earning-income people's lifetime income includes work income (salary, commission, bonus, self-employment income, etc. ) and wealth management income (interest income, rental income, dividends, etc.). ) produced by using monetary resources. Work income is earned by people, and financial income is earned by money.

2. Spending money-A person's lifetime expenditure includes living expenses from birth to death (household expenses such as food, clothing, housing, education, entertainment and medical care) and financial management expenses incurred by investment and credit (loan interest expenses, guarantee insurance expenses, investment procedures expenses, etc.). ).

3. Save money-If the current income of an asset exceeds its expenditure, there will be savings. The savings accumulated in each period are assets and principal that can help you roll over funds and generate investment income. When we are old and can't continue to work to generate income, we must rely on financial resources to generate financial income or realize assets to meet our needs in later years.

4. Borrowing money-Liabilities When income exceeds expenditure, borrowing money will accumulate into liabilities if it is not repaid immediately. Before the debt is paid off, in addition to the living expenses, there are amortization expenses of principal and interest for each period. For example, housing loans and car loans for purchasing self-use assets.

Second, the planning steps and core of wealth management products

Our most common wealth management products are: stock trading, funds, stocks, futures, national debt, savings, bonds, foreign exchange, insurance, bank wealth management products, capital preservation investment, trust, jewelry and so on. Generally speaking, products that may get higher returns are also risky. How to plan financial management?

The first step is to review the assets. Including stock assets and expectations of future earnings, knowing how much money can be managed is the most basic prerequisite.

The second step is to set financial goals. It is necessary to define the financial target qualitatively and quantitatively from the specific time, amount and description of the target.

Step three, don't assume that you don't consider any objective risk preference. For example, many customers put all their money into the stock market, regardless of parents, children and family responsibilities. At this time, his risk preference deviated from the range he could bear.

The fourth step is to allocate strategic assets. Do asset allocation in all assets, and then choose investment varieties, investment opportunities and investment value.

The core of financial planning is the process of matching assets and liabilities. Assets are previous stock assets and income capacity. Debt is a family responsibility, supporting parents and raising children. It is the core concept of family financial management to dynamically match your assets and liabilities in order to maximize your income and get a high quality of life.

Third, some misunderstandings in financial life.

Myth 1: There is no money to manage. Many people think that it is difficult to save money and manage money because of low income and many places to use money. This idea is wrong. There is no difference in financial management. As the saying goes, "If you don't manage money, money will ignore you". Instead of telling yourself "I have no money to manage money", it is better to tell yourself "I will manage money from now on" and learn to invest and manage money as soon as possible. A friend of mine mortgaged his house for 500,000 yuan to participate in investment and financial management, with a yield of 2 1.6% and a loan interest rate of 6.25%. His annual net income is 77,500 yuan, which is higher than the total salary of his husband and wife.

Myth 2: You don't need financial management. Some people think that although they don't know how to manage money, they don't spend all the money every month. Sometimes they have some money left, so they don't need to manage money. This view is also incorrect. Whether your income is really enough or not, financial management is necessary.

Myth 3: Making money is not as good as managing money. Many people hold this idea. I feel that my income is good, and it doesn't matter if I can't manage my money. Actually, it's not. You should know that financial management ability and earning ability often complement each other. A person with high income should have better financial management methods to take care of his property.

Let's look at the following two examples.

1. Know how to manage money: save 1 10,000 yuan a year to participate in financial management, and set the rate of return as 18%. After 30 years, the total cash assets will be 9.33 million yuan! Among them, the principal is 300,000 yuan and the income is 9.03 million yuan! Inadvertently, a multi-millionaire was born.

2, will earn money: based on the high monthly salary of 6.5438+0 million yuan, the same 30-year wage income is 3.6 million yuan, even if you don't eat or drink, it is only 3.6 million!

Is making money better than managing money, or managing money better than making money? The conclusion is that smart calculation is more meaningful than trying to make money.