What are some of the overlooked or misunderstood financial management concepts?

I used to like to buy some cheap items, or spend a lot of time buying cheap things on **, and then I found that I spent a lot of time on choosing items, because some cheap ones are not good to use, and then I learned that it is not bad to use them a little better, and it is not bad to cherish a little.

How bold is man, how fruitful is the earth. It's as if a bold person has a lot of capital. However, I think it should be properly controlled.

For example, a person puts all his money in an investment area and then does not know how to control it. Then, it may be bankrupt. In a good time, you may make a lot of money, but once you are ****, you will lose all your money.

I think you should get back the cost you invested when the best time is good, and continue to invest with profits. The big deal is that there is no profit, but the principal is still there. Just a personal opinion, don't spray if you don't like it.

I think "don't put all your eggs in the same basket", in fact, it depends on the environment at the time, this sentence may not be correct, if you have done a test on multiple financial products all of them are losing money, and only one financial product is a steady profit, and the performance is excellent, then at this time you can temporarily put all your income into this financial product, and then make money quickly in a short period of time.

Don't put all your eggs in the same basket. Many times, this sentence will be talked about when asset allocation. But if you see an opportunity and put all your eggs in the basket with the greatest opportunity, will the benefits be greater?

Many people think that financial management is almost to make a fortune, but in fact, financial management is just a way to increase value, not a way to make a fortune, and this concept should be corrected.

Many people like to follow the crowd, thinking that the most people are good, and there are things on the contrary, financial management must be rational, and the investment in the comprehensive platform can only be invested.

In order to save money, many people buy cheap everything, such as buying a 30 yuan dress at a stall, and thinking that they have picked up a big bargain, but the dress cannot be worn within a few days; I also choose cheap groceries, but I have to throw them away when I come back. In fact, on the surface, this saves money, but in fact, it takes time and wastes money, and sometimes things will be broken and the body will be damaged, and the gains outweigh the losses. Buying high-quality products, although it costs more money at one time, the fact is that the use experience and years are incomparable.

Some people buy something because they don't have what they expect or expect, and then they make do with a dress or a pair of shoes. Makeshift is makeshift after all, and you always want to buy one that exactly meets your expectations. Then the one that was made up before became a waste and unnecessary expense again.

Except, of course, in a hurry.

If you don't care about small money, you are destined to not make a lot of money. Because here we are talking about ordinary people, all of them are ordinary incomes. For example, the bus rental stops for getting on and off the bus are almost the same, and in some cases, I choose the bus.

For example, many of us have the habit of buying snacks and buying small things. Buy (buy for yourself or for your children) a bag of spicy strips today, buy a small bell tomorrow, buy a bracelet the day after tomorrow, after buying, such consumption seems to be very cheap, it doesn't cost much at a time, but it is also a large expense in a month.

I often hear people around me say that you will earn money if you spend money. There is some truth in this sentence, but in fact, many people don't know how to spend money at all, they don't know what money should be spent on to earn money for themselves, and they don't know how to make more money. For most people, this sentence is just an excuse for spending money like flowing water, and it is a very toxic concept of consumption.

Good goods are not cheap, cheap goods are not good.

We often see supermarkets doing events, discounts, and giving away things. You will also see various e-commerce holiday activities. A lot of people will go to the scan at this time and buy a lot of things that look cheap.

But in the end, are these things really practical, ***, not necessarily. You know, there is no such thing as pie in the sky, you get what you pay for. Never say buy an item because it's cheap.

I only know how to save money, but I don't know how to make money. When it comes to saving more money, many people may say, then I will spend less, I will no longer buy snacks, and I will no longer buy those occasional gadgets. I even feel that I have to save my rent every month, I have to save my transportation expenses, I walk to work, or I live a little farther away from the company, and the rent is cheaper.

In the past few months, it seems that you have saved a sum of money, but as everyone knows, if you calculate carefully, how much time you have lost to learn and grow in order to save this money.

There's a word in psychology called "mental suggestion." Some people will feel that the old will not come if the old does not go, and the new will not come.

Once you have this idea, you will very much want something to break down and lose it as soon as possible, so that you can buy it again, and some people will start to feel that the same thing that can still be used is not usable, and you have to replace it, you have to buy it, and it will cause waste. So we see a lot of people who don't know how to value their belongings at all.

Nowadays, it is more convenient to apply for a credit card, and many places will be encouraged to use a credit card, spend first and then pay it back every month, or take out a loan when you want to buy something and can't afford it. It sounds very simple and convenient, and it may be only a few thousand or a few hundred yuan a month, but in fact, many people can't hold it up in the end. There are job changes, income instability, personal and family daily expenses, and unexpected expenses, which make repayment particularly difficult.

1. If you don't have money, you're poor, so you don't need to manage your finances.

The concept of financial management is to have enough financial resources to make a series of preparations before you need money when you need it most. Wealth management is not an investment, it allows you to start accumulating wealth while planning for your future goals, and it has nothing to do with whether you have money or not.

Second, I am reluctant to spend the money that should be spent, and I don't care about the money that should not be spent.

It depends on what you think is the money to be spent and what not to be spent. With principles, you know how to get a handle on priorities.

3. Consider only the benefits and ignore the risks.

In financial management, some people blindly pursue the rate of return and take it as the ultimate goal. Fear of risk is a necessary concept for financial management, and you need to clearly know your risk appetite and pay attention to the planning of funds. In this way, you can avoid the situation that will seriously affect your life once you lose money.

Fourth, financial management is the first to buy insurance.

In fact, ** and insurance belong to a type of form in the financial management sector, which is a tool for financial management. ** The risk is greater, and insurance is the main risk management tool, providing some protection for yourself and your family. If you have extra spare money, then you can buy some annuity insurance property with more questions, you can consult the planner of the Sycamore Tree Insurance Broker, they will answer all kinds of insurance-related questions with you for free!

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Introduction: The more people who know how to manage money, the more money they have, and the more people who can't manage money, or people who have some wrong financial concepts, the less money they have. There are also some people who think that their money is very small and there is no need to manage money, and they feel that there is a threshold for financial management, and they must not be able to do it.

1. I have very little money, so there is no need to manage my finances

It seems to be like this, I feel that my money is relatively small, and then I don't want to manage money, but with my own learning of financial knowledge, I found that my idea must be wrong or wrong, not that you can't manage money if you have less money, the more you are too little to pay attention to, otherwise your money will only get less and less, and when you really want to use it, you will find that you have nothing. And some people think that I have very little money, not enough to spend, how can I have money to manage money, but you must know that he also saves money, only by planning his own money reasonably, can he have more money. <>

Second, I don't have professional knowledge, so it is very difficult to manage money

And for everyone to manage money is a very difficult thing, most of us have not been exposed to professional knowledge, always afraid that they will lose money after buying the product, really feel that after buying a financial product, they may lose money directly from the principal, but the money he earns still needs to be taken out after the specified time, which also makes many people prohibitive. <>

Third, the money earned has to be spent

At noon today, I was still telling my mother, the money you earn is to be spent, otherwise you won't be able to spend it at all, in fact, making money is to be spent, I think it is more correct, and most people will have such a wrong concept, but Xiao Wu also wants to tell everyone that spending money is the purpose of our efforts to make money, but we can only envy and work hard to make money in order to be able to consume rationally, so that we can have more choices, you can't say that you have spent all the money, you don't have a point when you want to use it.

There are two financial philosophies that are very wrong. The first wrong concept of financial management is to use all the money to buy the same financial product, there is no financial product is 100 stoves to make it 100% safe, the hidden bird takes all the money to buy the same financial product, in case of loss, the loss is too great! The second misconception of financial management is what is the slippery song, and what you invest when you make money!

People can't make money that they don't know! It's easy to fail when investing blindly!

First, buy **, second, buy **, the third put the money in Zheng Qian's bank in the pure cong banquet, fourth, buy some **jewelry, and fifth, do business with others who do silver.

If you have money, you will deposit it in the bank to facilitate your retirement when you are old, and you will always save money and keep it in the bank.

In fact, most people don't know how to manage money, but they don't know what financial management is from the fundamental concept, or they don't have the so-called concept of financial management at all.

In financial terms, the meaning of wealth management refers to the management of finances (property and debts) for the purpose of maintaining and increasing the value of finance. Wealth management is often used in conjunction with investment, because wealth management includes investment behavior, and investment is a manifestation of financial management. When people think of financial management, they make money, and there is no concept of financial management that is to manage cash flow and risk in life.

The only goal of making money as financial management is to fail to have a clear understanding of financial management.

In general, financial management is not only to make money, but also a behavior that has certain financial knowledge, goal awareness, risk awareness, planning awareness, etc., and has a certain comprehensive financial management ability.

Being overly risky and overly conservative is anachronistic and misconceptual.

A sound financial management concept that takes into account both high returns and low risks is the most prudent.

The wrong concept of financial management is that some people think that since it is called financial management, it will have a lot of benefits, or in other words, they will think that financial management is a sure way to make money and not lose money.

The biggest financial misconception is that you only think about high returns, but often high returns are accompanied by higher risks. So it is likely that it will not necessarily generate profits, and there will be some losses.

There are misunderstandings in financial management, when you lose money, you desperately invest money in it, and you don't know how to stop loss. In order to pursue high returns, choose some financial products with higher risks.

The notion that there will be no loss when buying ** is wrong. The currency ** is relatively stable, and there will generally be no loss, while **** may have a loss.

In recent years, the real estate craze has driven many people around me to fake divorces in order to speculate on real estate, and many people have lamented that Chinese investors lack investment channels. In fact, I feel that they have so many choices that they are often half-hearted. There are a lot of such investors:

Yesterday I heard that real estate is very profitable, and I regret not buying more; Today, I heard that ** is good, so I followed the trend and put money into **; Tomorrow, if you hear good news about ****, it is estimated that you will think about buying some **; The day after tomorrow, if you hear that dollar assets are more reliable, you will definitely think about how to get some dollar assets again. Since the purpose of investing is to make money, should you calm down and study a financial product that is most suitable for you and can help you make money? For example, for many people, making money is little and slow, but for me, a senior investor, it is such a reliable and profitable financial product.

Credit cards play an important role in managing money, but many people have misconceptions about credit cards. Over the years, every time I talked about the topic of credit card financial management, I could always hear a lot of rebuttals while receiving a lot of praise. For example, college students take advantage of the advantages of college students to apply for credit cards, and some people say that college students nowadays have such poor control skills, they should first learn to make money and experience the hardships of life, instead of using credit cards too early to satisfy various unrealistic desires.

They regard credit cards as a helper to satisfy their desire to spend, as if once they get a credit card, they will become a "card slave". In fact, in addition to being used for shopping, credit cards also have more functions, such as improving personal credit image. Having a credit card also indicates that the cardholder has a certain amount of credit.

By applying for a credit card while in school, college students can start accumulating personal credit earlier so that they can live a smoother life in the future. If you have a good credit image and credit score, you can also increase the loan limit in the future.

Knowing how to use insurance to pass on risks is the first step to financial success. For many people who do not have a critical illness insurance policy and have no savings, in the event of a critical illness, the common practice is to sell their houses, or find relatives and friends to raise money, and raise donations from the society if they can't make up enough. If you buy accident insurance, you can also get corresponding compensation in the event of accidental medical treatment, which will not make it worse when the financial crisis is lurking; Buy critical illness insurance so that you don't lose all your savings in the event of a sudden critical illness; With life insurance, debts will not be a burden on your family when you are absent or unable to work.