Currently, as the economy of all walks of life is affected, how to increase income has become the most considered issue for everyone! Financial management is also an important way to increase wealth, and is even the main method for most ordinary people! But how much money do you need to start managing money? It turns out that many people think that there is a threshold for financial management, and you must reach a certain amount before you can manage money.
Now let’s look at these two data.
Suppose you only have 50,000 yuan of free money on hand. Based on the average 2% return rate of Yu'e Bao , in one year it should be 50,000*2%=1,000 yuan, which is the starting price of a light luxury bag.
But what if you only have 10,000 yuan of spare money on hand now? The income will drop to 200 yuan. It sounds so miserable. After working hard for a year, I can't even afford a bottle of fairy water. I can only buy a male-colored lipstick.
But if you don’t manage your finances, you won’t even have an extra cent.
But if you don’t save money, there is no possibility of even a dime.
Financial management doesn’t matter how much you start (you still care, the threshold for buying a fund starts from 10 yuan). If you buy CSI 300 Index , it costs 100 yuan a month, which is calculated as an average annual return of 8% (this rate of return does not include High, it can also be achieved by investing in P2P).
can be bought from 20 years old to 60 years old. The total deposit principal was 48,000 yuan, and the total interest reached 287,737.25 yuan.
started buying at the age of 30 when he was 60 years old. The total deposit principal is 36,000 yuan, and the total interest is 110,815.04 yuan.
starts buying at the age of 40 and reaches 60 years old. The total deposit principal is 24,000 yuan, and the total interest is 35,307.51 yuan.
starts buying at the age of 50 and 60 years old. The total deposit principal is 12,000 yuan, and the total interest is only 18,774.58 yuan.
When I first calculated this amount, I couldn't believe it. I pressed the calculator several times to confirm that I was not wrong.
Compound interest = principal * interest rate * time. What if we save 200 yuan, 300 yuan, 500 yuan, or 1,000 yuan? You can do the math yourself, and the numbers will be so big that your eyes will light up.
1. Financial management is a kind of thinking
When is the starting point of financial management? 50000? 100,000? 1000000? This number is actually set by you. If you think you can manage money with 100 yuan, then 100 yuan is the starting point for your financial management. If you think it takes 10,000 yuan to get treatment, then the starting point is 10,000 yuan. The starting point for financial management can be 0.1 yuan. All the change in WeChat, even if it is only a few cents, I will transfer it to Tencent Change Pass on time and withdraw it when I need to use WeChat. It may seem a bit troublesome, but after you develop a financial mindset, you will find it a smooth thing, as natural as breathing and blinking, it takes no brainer at all and does not consume energy.
There are two laws of compound interest under popular science: 72 rule and 115 rule.
Calculated based on 1% compound interest, the principal will double after 72 years (72 is an approximation). Assume that the initial investment amount is 1,000 yuan, and the annual interest rate of compound interest is 10%. Using the rule of 72, 72 is divided by 10 (growth rate), and we get 7.2. That is, it will take about 7.2 years for the investment amount to roll up to 2,000 yuan. Similarly, 115 divided by 10 (growth rate), we get 11.5, which means it will take about 11.5 years for the investment amount to become 3,000 yuan. You see, it takes much less time to double than to double. compound interest effect tells us that quantitative changes lead to qualitative changes, and this quantity is time. It is nothing special to be a stock god for one year, but it is remarkable to be a stock god for 20 years. As ordinary people, we have no advantage in principal and interest rates. Our biggest advantage is time.
2. Financial management is a skill
Shouldn’t learning skills be learned from the beginning? Do you have to wait until all the conditions are met before you can learn? Once you learn how to do it, all opportunities will disappear. The process of learning skills is a process of not understanding at all - half understanding - feeling like you know everything - finally finding that you understand a little - working hard to extend the boundaries of your knowledge.
Tsai Kangyong wrote in his book "Kangyong, Kindness Message to a Cruel Society": "When you were 15 years old, you found swimming difficult and gave up swimming. When you were 18 years old and met someone you liked and asked you to go swimming, you had to say "I don't know how." When you were 18, you found English difficult and gave up. When you were 28, a great job came up that required you to know English, so you had to say, "I don't know how." The more troublesome it was in the early stages of life, the less willing you were to learn it. The more likely you are to miss the people and things that interest you, and miss the new scenery. " The process of learning financial management is the same. If you insist on waiting until you have 1 million before starting to learn financial management, I am an ordinary person with an average IQ. After studying financial management for three years, you can only say that you are no longer a layman, so you will miss many opportunities to take good care of your 1 million assets in these three years.
Financial management is like fitness, something that pays off in return. People who are good at financial management will maximize the added value of their property and realize the appreciation of their wealth through financial management. In the process of investment and financial management, it doesn’t matter if we don’t have money. We can buy small financial products and practice with small funds. Wait patiently, and one day there will be big rewards. Money begets money, which is the long-distance running champion. They are all working-class people, and their salary levels are not high. Such an increase in assets must be attributed to financial management.
The awareness of financial management that I have acquired very early has allowed me to spend every money carefully during the two years since I started from scratch. I have carefully compared every financial product and maximized the rolling investment, so as not to waste every day as much as possible. income. After seeing a good investment product, you dare to buy it after your own analysis. This is what I can do after mastering financial management skills. If I am not proficient in these financial management tools, how can I maximize their use? Although the current profit is not obvious due to the length of investment, I know that if I live patiently for a few years, time will give me beautiful returns.
3. Financial management should be done as early as possible
Financial management is generally speaking, financial management is to allow us to realize the freedom of wealth, to allow us to have the freedom to say "no" willfully, to prevent us from falling into poverty overnight due to illness and other accidents, and to allow us to When you retire, you will have more opportunities to see the world...for many, many future benefits.
To put it simply, financial management is to ensure the continued health of our financial situation, to ensure that you will not be suddenly stretched because of naked words, to ensure that you will not feel distressed when your children buy toys, to ensure that the family can travel once a year, to ensure that we can Satisfy your own little wish, and unhurriedly promote the family's safety pad to become thicker and stronger, and the ability to resist risks is getting stronger and stronger.
When we salivate over other people's assets, we can wipe our saliva and calculate our own accounts. Then tell yourself that you are a rich man in the future. Becoming rich means starting from when you are not very rich, starting to explore money to make money, and then making money step by step. From a financial management perspective, safe and reliable wealth appreciation requires patience, just like learning a skill. As you learn and practice, you will slowly become rich.
The young people of this generation have much more information and opportunities than we do. When I see 18- and 19-year-old young people emerging in various communities, when I see their clarity of goals and confidence in the future, , starting early is an incomparable advantage. It is equivalent to them having 10 years more investment career than me. Even if they make all the investment mistakes they should make, they will still mature faster. Under the same variable conditions , we can have much more wealth in the future than we do.
"The best time to plant a tree was ten years ago, and the second best time is now." - African female author Dambisa Moyo said in the book "dead aid". So, have you started growing your own money tree?
