Why manage money?

Why manage money? First of all, let me talk about "what is financial management". Financial management refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of property and reducing debt. Financial management is divided into enterprise financial management, third-party financial management (institutional financial management), family financial management, personal investment (financial management) and so on.

(1), corporate finance. Corporate finance mainly predicts, makes decisions, plans, controls, accounts and analyzes the raising, use and distribution of funds in the company's production and operation activities according to the movement law of funds, so as to improve the utilization effect of funds and realize the management of maintaining and increasing the value of funds. General steps of enterprise financing:

A, scientific investment decision. Determine the best investment direction and flow direction in order to obtain the best investment benefit-the basis of financing decision.

B, scientific financing decision. Reasonable selection of financing mode, scale and structure, comparative analysis of expected financing income and financing cost, in order to optimize the capital structure of enterprises and improve their profitability.

C, scientific income distribution decision, correctly determine the proportion of enterprise profit retention and distribution and reasonable dividend policy.

(2) Third party financing (institutional financing) (not recommended). Third-party financing refers to those independent intermediary financial institutions (investment companies), which are different from financial institutions (banks, insurance, etc.). ), but can independently analyze the customer's financial situation and financial needs, judge the required investment tools, and provide comprehensive financial planning services. Third-party financing (institutional financing) usually has risks:

A. legal risks. At present, there is no corresponding legal department or regulation to supervise the third-party financial institutions in China. Professor Huo from the School of Finance of Shanghai University of Finance and Economics believes that many private equity funds without legal status will manage their finances on behalf of third-party financial institutions.

B. moral hazard and investment risk. It is precisely because of the lack of legal constraints that third-party financial institutions are likely to use professional technology and information advantages to infringe on the interests of investors.

(3) family finance. Family financial management is an economic activity to manage one's own wealth and improve the efficiency of wealth use. Financial management is also the scientific and rational operation of capital and liability assets. Generally speaking, financial management is the way to make money, save money and spend money. Financial management is financial management.

(4) Personal investment (financial management). Personal finance refers to making a reasonable personal finance plan according to the financial situation and participating in investment activities appropriately. Personal financial investment includes: stocks, funds, spot, futures, national debt, savings and so on. Personal finance in the modern sense is different from simple savings or investment. It includes not only the accumulation of wealth, but also the protection and arrangement of wealth.

Let's talk about the purpose of our financial management. In fact, in the simplest terms, the purpose of our financial management is to "make the cost-effective ratio higher, the debt less, the wallet more bulging, and the life more interesting!" . In our life, no matter from birth to old age, we need to "use wealth and create wealth". Whether it is a company or an individual, our financial management is to earn more wealth. Wealth refers to money. In the economic society, we can't do anything without the support and guarantee of money. Now, the RMB is depreciating faster and faster. Think about 10 thousand dollars ten years ago and 10 thousand dollars now, and you will understand. Therefore, no matter ordinary people or corporate legal persons, only those who can manage money are the "richest people".

So, what can be done to achieve the above financial goals? Let's analyze and explain.

(1), financial advice makes it more cost-effective. In this regard, I think we should shop around and make the best use of our money. When shopping, in addition to learning to shop online and save money by discounting, you should also learn to shop around. Because only in this way can we make full use of our limited money.

(2) How to achieve less debt. Although reasonable debt can help people increase the flexibility of funds, excessive debt will bring heavy interest, which will not only be detrimental to personal financial freedom, but also increase the economic burden. Therefore, managing "debt" wealth is to minimize debt. If you use a credit card, try to overdraw within your ability to avoid large overdrafts.

(3) How to make the wallet bigger. In fact, there are two ways to make the wallet more bulging: one is to make money part-time, that is, to find money from outside and stuff it into the wallet. In this case, you can do some interesting part-time jobs in your spare time, such as writing, playing games, tutoring, earning extra money and so on. This can not only enrich your life, but also earn a lot of extra money to supplement your life. Isn't it the best of both worlds? Second, use the money inside to make more money in one way (investment or other). This method is generally called "making money with money or Qian Shengqian" and can be divided into "cautious" and "adventurous" according to different risks. These two kinds of financial management need to change the concept of financial management, adjust and optimize the investment structure, and let fresh "rain" continuously pour into your cup, so as to get closer and closer to the rich.

A. In order to manage money steadily, you can choose to put money in various "babies", such as Yu 'ebao; You can also choose to buy bank money funds or wealth management products.

B for risky financial management, if you are lucky, you can make your wallet swell twice or more. However, there is a saying that "investment is risky and you need to be cautious when entering the market". If you are unlucky, you may lose your money. This method is generally suitable for people who know some financial knowledge and can take risks. This method includes "stock trading, investment in spot gold and silver futures, bonds, etc." For this kind of financial management, it is suggested that "don't put all the eggs in the same cage" to reduce the risk.

(4) Life is more interesting. Financial management can improve the quality of life, which is understandable. Meeting the needs of daily life is only the basic purpose of investment and financial management. However, everyone wants to improve their quality of life and live a better life. They all want to live in spacious and bright villas, drive high-end and comfortable cars and spend their holidays in world tourist attractions. But all these demands for a higher quality of life need a lot of money to support them. Without financial management (investment), these beautiful wishes may never come true. However, as long as we reasonably adhere to long-term investment and financial management, perhaps one day, a better life is not far from us.

A great man once said, "Time is wealth". Rational use of time is actually a kind of financial management. Lu Xun said, "I spent all other people's coffee time writing." Ostrovsky borrowed Paul's words: "When we look back, we don't regret wasting time." Hua, a famous mathematician, said: "All successful scientists are experts in using time without exception, and they are also people who are determined to put in a lot of labor in a lot of time." Baidu knows that I said, "Take care of your time and money and realize your life dream!" . So, everyone has time. If you cherish it, it is wealth. If you ignore it, it will be worthless and you will accomplish nothing. A person will succeed because he did something different from us in 24 hours. If we want to succeed, we must manage our time better and improve the efficiency of doing things. Time management is a rigorous science, and its purpose is to make us realize a happy and realistic successful life. Managing "time wealth" is not to let us cope with time, but to let us be close to time and love it. Time is the capital of life. For soldiers who seize the position, time is life; For smart businessmen, time is money; For hardworking farmers, time is wealth; For strategists, time is victory.

For you who are looking at the problem, "managing your own time and money" means being a "warrior, smart businessman, hardworking farmer and strategist"!