In the whole financial management system, there is a very important concept interspersed: that is the time value of funds. Money is valuable, Baidu Encyclopedia defines it as: the time value of funds refers to the appreciation of funds over time in the process of production and flow. It can also be regarded as the use cost of funds. Funds will not automatically increase in value over time, but only in the process of investment, so this time value is generally replaced by risk-free investment rate of return, because rational individuals will not idle funds.
It changes with time, is a function of time, and its value changes with the passage of time, and the changed value is the original time value of funds. Only when it is combined with labor can it be effective, which is different from inflation.
In my recent study, I feel that learning accounting should first establish a framework of accounting system in my mind. Within this framework, we should first study every knowledge point, and then connect all knowledge points in series to form the knowledge of the whole accounting system. So is financial management. First of all, we should establish the concept of financial management in our hearts. With this concept, it will be much easier for us to learn various knowledge points again.
Financing management-capital operation-investment management-capital allocation-performance evaluation will find that in fact, the line of financial management is closely combined with the whole process of accounting, which can also be said to be around the accounting process of accounting. We just want to study various links around this line, focusing on five links on this line.
Actually, I'm still in a confused stage. If I don't have a good sense of numbers, I really feel that I will never reach the level of a financial expert. I don't know if this thing can be cultivated, but after studying for a long time, some numbers will flow in my blood.