Hello everyone, I am your friend.
My friend, I always feel that it is profound and difficult to understand when it comes to finance.
browsing my phone when I was free today. When I saw the word finance, I pressed and searched for it because I wanted to know what finance is.
It turns out that finance is a part of our daily life, but I just didn’t pay attention to it. This is the search result:
Finance is an economic term and is an economic activity related to the circulation of currency .
Finance has three pillars, namely:
1, Bank: You can deposit or borrow.
2, Securities : It is an investment product, uses wisdom to exchange a certain amount for the greatest profit.
3. Insurance: Compensate for losses caused by accidents, major diseases, etc., or return part of the insurance premium after the insurance period ends.
Finally emphasized: Investors can recover funds and share risks through these three aspects of investment, so as to obtain the maximum return with the minimum investment.
After reading the explanation, I remembered what my dad said before:
Smart investors can always use bank lending to alleviate insufficient funds and then invest. The gains obtained are much greater than the interest paid to the bank. This is money making money.
I was always a little confused after hearing my dad say this, but now I seem to understand it.
means borrowing money from the bank to invest, and the profits obtained in the end are much greater than the interest paid to the bank, that is, the profits are generated without spending a penny.
However, investment is risky. Before investing, you must make a lot of analysis and investigation preparations to determine that the return obtained by the invested project is greater than the expenditure, and then you can invest.
Thinking of this, I admire those smart investors more and more.
Because they can always correctly judge what is worth investing, and then flexibly borrow from banks to invest, and they also share risks through insurance and other means.
Finally, get the maximum profit with the minimum investment. This behavior is so cool.
But at the same time, I also understand that before they can correctly judge whether a certain investment is worth it, and before they can avoid and diversify risks, they must have been brewing and accumulating for a long time before they finally understand the ability to invest.
Who can succeed casually, but they just silently put in and work hard where we can’t see it.
Today, I learned about the three pillars of finance: banking, securities, and insurance.
flexibly invest in the above three aspects, which can achieve maximum returns with the minimum investment and avoid and diversify risks.
allows us to constantly understand financial knowledge and lay the foundation for future investment and making money. Let’s rush the duck together!
OK, friends, good night [Moon]
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