Better understanding of finance-from housing slaves to debt management

Recently I am crazy about the topic of "Debt Management". In the future, I will complete a simple series with the topic of "Debt Management.

Now that debt is involved, financial knowledge must be available. The following is a simple introduction to financial knowledge. We recommend poor dad and rich dad.

 

Four songs from house slaves-Financial awareness is very important

A house is an asset. When I think of a house, it is the most important asset in my life. Because the house is a warm harbor, it gives me a sense of accommodation and happiness. There is no marriage certificate and no wife because there is no house. This is a real problem.

A house is an investment. Look, there are too many attractive houses, but we can only find that the world is so realistic in actual actions. What should I do if I have no money? Is my life's assets far away from me like this. I am unwilling to go out of my life for the biggest investment. I spent my savings, found my parents' support, borrowed money from my friends and family, and finally prepared my first payment. Speaking of looking forward to adding value to the House, as a working class with only the first suite, where do you go if you sell a house? Who is responsible for falling house prices?

The house is in debt. After purchasing the house, I borrowed money to renovate the house, paid for the home loan, and saved money and borrowed money. I don't know how to make it happen next month.

The house is in debt. Finally, I finally understood that the house was originally in debt. It makes my life quality drop, my sense of belonging is not found, and my happiness is lost first. The feeling of going home has completely changed. After going home, I only saw the four walls of home, and the two were relatively speechless when they were eating instant noodles. Now, I have a new name. Please call me fang nu.

 

This is the four songs made by the House slaves. Financial knowledge is important only when we start from Hope and end with disappointment. If you want to acquire assets, but you don't know how to reap the debt, it's a cultural loss.

The balance sheet provides us with an understanding of assets and liabilities. in financial terms, assets allow cash flow into our pockets and liabilities allow cash flow out of our pockets. For migrant workers, the only income is the monthly salary, and the only financial asset is yourself. So you know how important health is. However, the balance sheet is not the most important, although we can give up everything for assets.

The cash flow statement has the greatest impact on us. Financially speaking, there is no more important thing than increasing the monthly cash inflow. The lack of cash will bring about a direct decline in the quality of life. What is worse than the decline in quality of life is that if we fail to pay off our mortgage for several months in a row, we will go bankrupt due to insufficient cash flow, the house will be withdrawn by the Bank, and all the investment in the early stage will go off.

Another important report is the income statement. By the end of each year, you can check the remaining amount of the last year, the amount of income this year, the amount of expenditure, and the remaining amount. The income statement clearly shows whether this year is a busy day or a profit.

 

Management and Finance-Is management an asset?

Management is inseparable from finance since its birth, and management is essential in the business process. The balance sheet, cash flow statement, and income statement, also known as the three financial statements of the company's operating conditions, can easily display the results of the company's operations.

Management is an activity that emphasizes Roi. Roi is also one of the most powerful management tools for managers. Because management is the process by which managers and others can complete activities efficiently and effectively through others, in the business process, it will rely on management to help enterprises choose more optimized and effective, that is, a scheme with a higher return on investment, so as to increase the value of output and ultimately improve the business return of enterprises. It seems that investment in management is completely worthwhile.

I remember that a long time ago, I was still starting a business. The boss needs to strengthen management, which should be more systematic and standardized. I asked a silly question at the time. Why should we strengthen management? Of course, I was beaten up and asked how to make good results if I didn't manage it. The implication is that management is an asset and there are some doubts. However, this is really similar to my wife's tone when buying a house. Is management really an asset? Will it turn around and turn into debt, and we are lucky to be promoted to the management slaves?

 

Post

We usually look at the property from the perspective of assets, but forget that for us, the property is often a liability. Good debt management capabilities allow us to effectively manage the property assets. Otherwise, it will easily become a house slaves. Is the same for management? Looking at management from the perspective of debt, what new gains can it bring?

 

Discussion

1. Is the house a debt or an asset? Is there a solution for the above charts?

2. Are your current company assets or liabilities managed? Why?

 

Glossary (the following definitions are from various online encyclopedias, mainly Wikipedia)

Assets: When you hold an item, it will automatically make the cash flow to your pocket, that is, assets.

Liabilities: When you hold an item, this item will automatically make the cash flow out of your pocket to someone else's pocket, that is, debt.

 

Balance Sheet: The balance sheet is one of the financial statements in accounting, commercial accounting, or bookkeeping practice. Using the accounting balance principle, the balance sheet can divide assets, liabilities, and shareholder equity transactions that conform to the accounting principles into two major blocks: "assets" and "liabilities and shareholder equity, after accounting procedures such as entry, transfer, ledger, trial calculation, adjustment, and so on, a report is consolidated Based on the static enterprise situation on a specific date. The report function allows all readers to learn about the business status in the shortest time, in addition to the internal debugging, Operation direction, and prevention of disadvantages.

Cash Flow Statement: The cash flow statement is one of the three basic reports of the financial statement. It expresses the cash (including bank deposits) of an institution within a fixed period (usually every month or quarter). The emergence of the cash flow statement mainly reflects the impact of each item on the cash flow in the balance sheet, and classifies it into three categories based on its purpose: operation, investment and financing. A cash flow statement can be used to analyze whether an agency has enough cash to cope with expenses in the short term.

Income Statement: An income statement is one of the important financial statements used to calculate and display the company's profitability.

 

Management: Management is the process by which managers and others can complete activities efficiently and effectively through others.

ROI (ROI)Return on investment (ROI) refers to the value that should be returned by an investment, and the economic return of an enterprise from an investment in an investment business activity. It covers the profit targets of enterprises. Profit is related to the property necessary for the operation, because the management personnel must make profits through the investment and existing property.