Financial management tips

 

1.I am engaged in and strive for my favorite jobs. Hard work is the source of luck and wealth.

 

The accumulation of any Wealth Begins with hard work. The harder you work, the easier you are to earn more money and become a person with freedom of wealth. Hard work is the real secret to luck and wealth. This secret is simple and effective for anyone, without exception.

 

2. to make money, you have to make money. This means you need to save a sum of money every month.

 

Without saving, it cannot be a rich man. Saving is not a "virtue", but a "means ". Hard work is not the only condition for becoming a rich man. You must make efficient use of the money you earn.

 

The consumption is restricted by the inbound and outbound traffic. Making money at work is not for consumption, but for investment. Saving is "Keep", and investment is "attack ". For long-term investment, time is money, and both savings and investment must be early.

 

3. Reasonably configure assets

 

Take money management as the center, save money as the starting point, generate money as the focus, and protect money. Individual assets should be divided into three parts:

First: emergency money, living expenses from 6 months to one year. Deposit bank, current period, regular period, or currency market fund.

Second: life-saving money, three to five years of living expenses, fixed deposit, national debt, and commercial pension insurance. It should be the warranty.

Third: idle money, which is not used for five to ten years. Only such money can be used to buy stocks, funds, real estate, or start a business with a friend.

 

4. Stick to long-term investment. The sooner you start, the more you get.

 

Compound interest investment is a stepping stone to the road to the rich. After an accurate evaluation, compound interest investment has always adhered to its own investment principles and targets. Investors with surplus time can fully enjoy the time utility and create more value.

 

Compound interest is the commodity that best reflects the truth of time and money ". Although the initial investment is insignificant, the ROI will increase exponentially as the investment time increases. Therefore, if you want to enjoy the benefits of compound investment, you must extend the investment time as much as possible.

 

5. Stick to value investment instead of speculation

 

Don't dream of a fortune overnight !!! But we must also have the ambition to get rich.

 

When there is a seemingly good investment opportunity, ask yourself six questions (such as property rights hotels ):

1. who is selling my stuff? What is the credibility of the other party?

2. What did I do with my money?

3. What money do I earn and the profit model.

4. Is the return rate reasonable? The annual income is 1%-5% low, 5%-8% medium, and more than 8% high.

5. Can I sell it if I leave it empty?

6. Can I use it for my own use if I cannot sell it?

If you have more than two questions about the six questions, they will not be credible.

 

In a rational market, buying a house is a value investment behavior, while buying a car is a sustained consumption behavior.

 

6. Adhere to centralized and decentralized investment

 

Combines scattered investment with concentrated investment.

 

Most of the new generation's richest people are "distributed Investment" experts who don't put all their eggs in one basket. The so-called decentralized investment refers to investing funds in different types of projects, such as savings, bonds, stocks, real estate, and gold. As long as the strategy is well applied, on the one hand, risks can be greatly reduced, and on the other hand, the greatest benefit can be ensured.

 

Of course, the danger of decentralized investment lies in the possibility that junk projects will occupy most of your money, without more money to invest in outstanding projects.

 

7. Sticking to self-investment, information, knowledge, and skills is the greatest fortune.

 

Continuous learning of all aspects of your knowledge, including investment, economics, personal health, personal charm, and Humanistic Qualities, is a prerequisite for getting rich.

 

By reading newspapers, reading books, searching online, communicating with competent groups, extensively Collecting public and non-public information, and extracting valuable clues, then use these clues to make the right investment decisions step by step.

 

8. Maintain a normal heart

 

In the event of a crisis, we must maintain a normal mind and adopt a positive way of thinking, turning the crisis into a turning point.