What are the principles of personal finance and what are they?

The principle of personal finance is that no matter what era, you should have your own financial principles on the road to a happy life in order to truly master wealth. Fu Rongbao financial planner recommends that you keep the following principles in mind:

The principle of living within one's means - to ensure basic living and invest surplus money.

Principle of economic efficiency - absolute value: profit = income - cost; Relative value: return on investment = profit 100% of the investment amount

The principle of safety - portfolio investment, diversify risks, don't put all your eggs in one basket; Don't carry all the baskets on one shoulder, either.

The principle of monetization - the sky is unpredictable.

The principle of adapting to the person's conditions – environment, personality, preferences, age, occupation, experience, etc.

The principle of lifelong financial management - the needs of a person's financial management are different at different times of their life, so it is necessary to consider the phases and continuity.

Happy Financial Management Principles - The purpose of investing and managing money is to live a better life, maintain a happy mood and a healthy body.

The principle of improving quality - enhance the ability of financial management, capital management, risk investment, and enrich economic and financial knowledge.

1. The principle of matching risk and return: high return is necessarily high risk, low risk corresponds to low return, and the risk must be controlled within the range of its own tolerance, so as to choose the appropriate financial management method and set the corresponding income target;

2. Live within your means and do what you can: financial planning should comprehensively consider your short-term and long-term living arrangements, reasonably consider your realistic affordability and future expected goals, etc., and do not blindly set too high financial plans;

3. Do your homework and don't invest blindly: Investment and financial management is a very professional course, and it takes a certain amount of time to learn and understand, and professional knowledge can make investment safer.

Reminder: The above explanations are for reference only and do not make any suggestions. The relevant products are issued and managed by the corresponding platforms or companies, and the Bank does not assume the responsibility for the investment, redemption and risk management of the products.

Entering the market is risky, and investment needs to be cautious. Before making any investment, you should ensure that you fully understand the investment nature and risks involved in the product, and carefully evaluate the product in detail before making your own judgment on whether to participate in the transaction.

Money management refers to the process of managing the financial resources of an individual or business. For the average person, understanding the following financial knowledge can help them better manage their financial resources:

1.Stay within your income: The first step in managing your money is to make sure you don't spend more than your income. This means that you need to make a budget plan and try to stick to it.

2.Establish an emergency reserve: It's important to have one because it can help you deal with unexpected events, such as job loss, illness, or emergency household expenses. Usually, this reserve should be your living expenses for one month to three months.

3.Eliminate high-interest debt: Eliminating high-interest debt is another important step in managing your finances.

4.Investment: If you have a certain amount of idle funds, you can consider investing to get a higher rate of return. However, before making an investment, you need to understand the basics and risks of investing.

5.Plan for your retirement: Planning for your retirement is very important because it ensures that you have enough financial resources to support yourself in retirement. You can plan for retirement by saving, investing, planning for your retirement and more.

6.Monthly storage: Save a certain amount of money every month as much as possible to maintain financial stability. Even a small amount can help financially in the long run.

7.Learn to spend responsibly: Avoid unnecessary spending and make sure every expense counts. Buy the most reasonable items and avoid excessive consumption on the basis of rigid needs.

8.Know about taxes: Understanding taxes is important for managing your finances because taxes can have an impact on the financial well-being of both individuals and businesses. Understanding tax rules can help you manage your personal or business finances more effectively.

9.Insurance protection: In terms of risk protection, it is possible to purchase appropriate insurance products such as medical insurance, car insurance, home insurance, etc.

10.Seek professional advice: If you're confused or unsure about financial literacy, seek professional advice.

These professionals include financial advisors, tax experts, investment consultants, and more. They can help you develop a personalized financial plan, providing advice and guidance based on your financial goals and circumstances.

In conclusion, managing money is a task that requires long-term planning and management. Knowing this financial knowledge can help you better manage your financial resources, improve your financial well-being, and achieve your financial goals.

As the xx year is approaching, how should we choose bank wealth management products next year? Jiang Lian, deputy general manager of the personal finance department of ICBC Chongqing Branch, summarized the "4 principles of financial management" for the general public

Principle 1: Be clear about your risk tolerance. Now each bank has its own risk assessment system, and the standardized bank wealth management products should also explain the suitable investment groups in the travel book, and you may wish to ask the bank staff to explain before buying bank wealth management products.

If you are a conservative person with a risk appetite, it is more suitable to buy fixed-income wealth management products, and if you are an aggressive person with an aggressive risk appetite, you can try commodity linkage, interest rate linkage or QDII products from banks.

Principle 2: The investment period should be clear. Generally speaking, bank wealth management products with a longer term have higher returns, but when the interest rate hike is expected to be stronger, it is recommended that the investment period is within 3 to 6 months.

Principle 3: Understand who the product is investing in. The investment objects of bank wealth management products generally include bank credit assets, markets, equity, commodities, etc., and the different investment risks and returns of different investment objects are not the same, and the wealth management products cannot be simply selected according to the yield of the wealth management products.

Principle 4: Investment in bank wealth management products should also depend on the bank's investment ability and past performance of similar products.

In addition, Jiang Lian reminded that due to the recent interest rate hikes, the yield of various banks' wealth management products is bullish, but good bank wealth management products are also very "pretty", and investors should be quick to see and move! The bank's online banking is the fastest way to purchase wealth management products.

The following is the common sense of financial management that ordinary people should know:1The purpose of financial management.

The purpose of financial management is to make money and increase wealth accumulation. Financial management is not gambling or speculation, but through scientific methods, to make your money more valuable.

2.The basic principles of financial management.

The basic principle of financial management is that risk is proportional to return, that is, the higher the return, the greater the risk. Therefore, when managing money, it is necessary to choose the right financial product according to your risk tolerance and return expectations.

3.Ways to manage your money.

There are many ways to manage money, including deposits, bonds, insurance, etc. Each method has its own characteristics and risks, and you need to choose according to your own situation.

4.Deposit.

Deposit is the most basic way to manage money, and its advantages are safe, stable and liquid. However, the yield of deposits is low and cannot meet the demand for high yields.

5. **。

**It is a way of collective investment, and its advantages are risk diversification, high returns, and good liquidity. However, the risk is also greater, and you need to choose the right product for yourself.

6. **。

**It is a high-risk and high-return investment method, and its advantages are high return and good liquidity. However, the risk is also very large, and it requires certain investment knowledge and experience.

7.Bond.

Bonds are a fixed-income investment method, and its advantages are safe, stable, and stable returns. However, bonds have lower yields and cannot meet the demand for high yields.

8.Insurance.

Insurance is a way of risk transfer, and its advantages are to protect risks and stabilize returns. However, the yield of insurance is low and cannot meet the demand for high yields.

9.Portfolio.

Portfolio refers to the combination of different financial management methods to achieve the purpose of risk diversification and return maximization. Portfolios need to be selected based on your risk tolerance and return expectations.

10.Precautions for managing your finances.

When managing your finances, you need to pay attention to the following:

1) Understand your risk tolerance and return expectations;

2) Choose the right wealth management product;

3) Diversify risks and avoid concentrated investment;

4) Adjust your portfolio regularly to adapt to market changes;

5) Avoid blindly following the trend and invest rationally.

In short, financial management is a process that requires long-term accumulation and practice, and requires continuous learning and adjustment. Hopefully, you will find the above helpful. aqui te amo。

Here's what ordinary people should know about financial management:

Save money: Put some of your income into savings for a rainy day. The recommended savings amount is 10%-20% of your income.

Keep your expenses under control: Allocate your expenses in your monthly budget and don't exceed the limits of your income. It is recommended to spend 50% of your income on necessities, 30% on quality of life improvements, and 20% on savings.

Debt management: Reduce unnecessary debt as much as possible and don't abuse credit cards or borrowing. It is recommended to borrow no more than 30% of your monthly income.

Investment: Invest idle funds in different asset classes to maximize returns. It is recommended that beginners start with low-risk, high-liquidity investment varieties, such as bank savings, bonds**, indices**, etc.

Risk control: Treat investment risks rationally, choose suitable investment varieties according to your own risk tolerance and investment objectives, and do not invest all assets in the same investment variety.

Insurance planning: Purchase the necessary insurance products, including medical insurance, accident insurance, life insurance, etc., to avoid unexpected risks. The purchase amount of the insurance is not more than 10% of the annual income.

Regular Evaluation: Regularly evaluate your own financial situation and the performance of your investment portfolio, and make timely adjustments and optimizations to unsuitable Pitou assets. It is recommended that the assessment be conducted semi-annually or annually.

In general, the basic principles of financial management are steady, diversified, and long-term. Through proper savings, spending control, debt management, investment, risk control, insurance planning, and regular assessments, the average person can achieve financial freedom and steady growth.

Clause. First, we must learn to speak with data and build sensitivity to numbers. Money is about money, and money is something that can be represented by numbers. So we have to be digitally sensitive.

Clause. Second, we need to learn to open source slashes. It is also necessary to develop a certain skill of yours in your spare time, or to pick up a hobby of yours and carve out an income for yourself before playing the slash.

Clause. 3. Perhaps the most important thing is to increase your income through multiple channels. Invest in yourself.

Investing in yourself is the best investment. Because whether it is to increase income through promotion, or to open up income channels through slashes, we need to improve and expand our own capabilities.

Therefore, in addition to the money that is necessary for daily life and used for long-term investment, we should also set aside a sum for our own development**, through learning to study, register for classes, listen to lectures, and participate in offline training. It's about improving yourself, networking and finding some suitable platforms to showcase yourself.

Clause. Fourth, stay on the field. This is also an important reason to buy insurance.

When we have a certain amount of wealth, we are better off than investing and doing other things. We must pay attention to risk prevention and control, pay attention to risks and odds when investing, and avoid a gambler's mentality. Know that staying on the pitch is more important than anything else.

Clause. Fifth, inherit the descendants. Because many of us are going to get married, have children, and raise the next generation.

It is also very important to pass on our financial experience, good financial habits, and savings habits to the next generation, so that they can also grow up freely after being separated from our protection.

On the road of financial management, in addition to the above mentioned through regular investment and long-term investment, asset allocation to achieve my financial freedom as soon as possible, we should also pay attention to adhere to these principles, we make fewer mistakes on the road, in fact, many times we do not need to do much successful things. We just need to avoid all mistakes. Eventually, we will be able to succeed.