Since the popularity of Internet financial management, financial management has become more and more popular. Everyone's view of money management is different, just like a thousand readers have a thousand reviews. People's different understandings of financial management also determine the talent and future in financial management.Every investor has different views on money management, and different opinions on financial concepts and ways of managing money, so how exactly should we make a reasonable financial plan?
For how to reasonably develop a financial plan, I have given the following suggestions for your reference:
1. Develop a financial plan based on your consumption
Divide the proportion for your various consumptions and make sure that each month's investment amount is not lower than the previous month. For example, consumer spending, unexpected expenses, investment and financial management and several other aspects, divided into categories to form a written, easy to adjust the plan at any time according to the reality of the situation.
2. cut back on expenses and save in small amounts
Often people don't think twice about spending a small amount of money, but even a small amount of investment can bring a lot of wealth. Suppose you start saving an extra $100 every month from the age of 25 and get a 10% annual profit, you will have $20,000 by the age of 35. The longer you invest, the more obvious the effect of compound interest will be.
The concept of zero deposit is what every financial planner will emphasize with their clients, save a fixed amount of money every month for a year, and then turn it all into a one-year time deposit or treasury bonds upon maturity, the deposits and treasury bonds are risk-free and can be used as a living reserve or down payment for future home purchases.
3. Control your credit card and eliminate blind overdraft
The actual total amount of credit card spending should not exceed a quarter of your salary. To avoid blind overdraft behavior, it is recommended that only one credit card is the most appropriate.
Take most young people as an example to tell us how to make our own financial plan: Assuming a monthly income of $4,000, a year-end bonus of $4,000, and an average monthly normal expenditure of $1,000, we should do the following.
Put aside $500 a month in funds for zero savings to meet daily emergency expenses Apply for a credit card, usually choose to spend by credit card, especially in the event of an unexpected event, you can rely on the credit card to get through the difficult times. But remember to pay it back in time to ensure good credit.
4. Buy a critical illness insurance for yourself
After the expenses and protection are done, you can consider investing. However, you should pay attention to investment, keep your head clear, don't take risks, don't buy more, and buy financial products that suit your actual situation.
The concept of financial management is crucial to financial management, we must establish the correct concept of financial management, so as to protect the safety of our financial funds.
