How to understand the sentence "You don't manage money, money ignores you"? (with bonus points)

Without financing, there is no finance.

Financial management is the management of property (including tangible property and intangible property = intellectual property). Mostly used for personal management of personal property or family property. It refers to the plan, scheme or scheme that an individual or institution sets the desired economic goal according to the current actual economic situation of the individual or institution, adopts one or more types of financial investment tools within a limited period of time, and realizes its economic goal through one or more channels. In the process of implementing the plan, it is also called financial management.

The scope of personal finance

■ (1) Making money-income

Living income includes working income generated by personal resources and financial income generated by monetary resources; Work income is to make money with people, and wealth management income is to make money with money. Therefore, the scope of financial management is wider than making money and investing. Including:

① Work income: including salary, commission, work bonus, self-operated income, etc.

② Financial income: including interest income, rental income, dividends, capital gains, etc.

■ (2) Monetary expenditure

Lifelong expenses include the living expenses of individuals and families from birth to death, as well as the financial expenses arising from investment and application for credit. Some people have expenses and families have burdens. The main purpose of making money is to meet personal and family expenses. Including: living expenses: including family expenses such as food, clothing, housing, entertainment and medical care. Financial expenses: including loan interest expenses, guarantee insurance expenses, investment formalities expenses, etc.

■ (3) Saving money-assets

When the current income exceeds the expenditure, there will be savings, and the savings accumulated in each period are assets, that is, the principal that can help you roll money and generate investment income. In old age, when people's resources can't continue to work to generate income, they must rely on monetary resources to generate financial income or realize assets to meet the needs of the elderly. Including:

(1) emergency reserve: keep a sum of cash in case of unemployment or emergency.

② Investment: portfolio of investment tools that can be used to generate wealth management income.

(3) Purchase of property: purchase of assets that provide use value, such as houses and cars for personal use.

■ (4) Borrowing-liabilities

Borrow money when cash income cannot cover cash expenditure. The reason for borrowing money may be that you can't make ends meet temporarily, and you can buy real estate or automobile appliances that can be used for a long time to expand credit investment. If the loan is not repaid immediately, it will accumulate into liabilities and pay interest according to the balance of the liabilities. Therefore, before the loan is paid off, in addition to living expenses, there will be amortization expenses of financial principal interest. Including:

① Consumer liabilities: such as credit card revolving credit, cash card balance, installment payment, etc.

(2) Investment liabilities: such as margin for margin financing and securities lending, borrowing money to invest with financial leverage.

③ Self-use assets and liabilities: such as housing loans and auto loans required for purchasing self-use assets.

■ (5) Saving money tax

In modern society, not all income can be used to pay expenses, but income tax, property tax, gift tax or inheritance tax must be paid if there is income, so how to legally save income tax in cash flow planning and gift tax or inheritance tax in property transfer planning has become an important content of financial management and a primary consideration for high-income individuals. Including:

(1) income tax planning

② Property tax saving planning

(3) Property transfer tax planning (widely used abroad at present)

■ (6) Protecting money-insurance and trust

The focus of capital preservation is risk management, that is, make insurance or trust arrangements in advance to protect human resources or existing property, or obtain financial management to make up for losses when losses occur. The function of insurance is that when an accident makes the family's cash income unable to meet the expenses at that time or in the future, there is still a sum of money or income to make up the gap and reduce the impact of unexpected income and expenditure imbalance during the life journey. In order to obtain the protection of life insurance and property insurance and make up for the loss of people or things, a certain percentage of premiums must be paid. In the event of an insurance accident, the financial income generated by claims can replace the income from interrupted work to meet the living expenses of families or survivors, and can also be used to repay debts and reduce the interest expenses of financial management. In addition, the trust arrangement can make the trust property independent of other private property, free from recourse by creditors, and has the function of protecting the existing property from losses. Including:

① Life insurance: life insurance, medical insurance, accident insurance and disability insurance.

② Product insurance: fire and liability insurance.

3 trust.