Money management or financial management is no longer a strange term for all of us. However, those who really understand financial management are very few.
The vast majority of people do not grasp this important skill while it is an essential element for success. So want to really understand financial management must study hard financial management knowledge.
How to understand the money management knowledge, personal financial management skills? Wanting to become a manager of financial management, in addition to luck, it also depends on the ability to grasp and improve their own investment knowledge.
Obviously, we need financial management so you can control how much you have, know what you should do and what you shouldn’t do with it. To be able to do what you want to do. If you don’t know how to manage your money well, you won’t be comfortable with your plans.
In your money management skills or financial management you need to be clear about what financial management and investment are two completely different concepts.
A comprehensive financial management plan will include cash plans, spending plans, insurance plans, investment plans … Financial management must have a clear goal. Moreover, this goal can be quantified and work within a certain period of time.
It should be understood that the deposit of money is the starting point in financial management. However, saving money must have a scientific calculation of the amount of deposit and the deadline for sending. How to get the highest possible profit. It is possible to deposit automatically by maturity but the period should not be too long.
Some money for your daily, personal activities is necessary, it needs to ensure the service of your life,
You need to have a stable amount of money, that is, it will be used when something is wrong. And insurance money is used to ensure your healthy, peaceful life.
Finally, the amount left after planning to spend on the above 3 items will be investment. This money is money that can bring more money to us. It is also the money that can give us more opportunities.
When making personal financial management estimates, can be divided into three parts: one is mandatory cost, another is cost does not matter, three is unnecessary costs. Know each of your expenses, then cut a portion of your income to save or invest.
Money is not universal. But without money, everything would not be possible. Therefore, make a plan, send your savings every month to the bank. Forcing yourself to form a habit of saving, saving and saving.