I have no money. Do I still need to manage money?

In the eyes of the public, personal financial management is the business of a few rich people, and the working class does not need financial management. In fact, financial management is not the patent of the rich, there is no threshold for financial management, and people with different income levels need financial management. It is as important to have a financial plan when you have less money as it is when you have more money. If you have a lot of money but no plan, the money will gradually flow away from you. If you have no plan and only a little money, you will stay in a world without money forever. Working families need financial management more. Compared with them, they face greater life pressure in buying a house, medical care and providing for the aged. They need financial management to increase their sources of income. Compared with the rich, people who don't have much savings have poor risk tolerance, so they need to maintain and increase the value of limited assets through financial management. What needs to be clear here is: "managing money ≠ making big money". The primary purpose of financial management is to ensure the increase of income and the preservation of assets. Even if personal and family wealth does not suffer losses due to economic fluctuations, the secondary purpose is to obtain wealth gains.

From the perspective of financial management, personal financial planning can be further subdivided into three parts: consumption financial management, safe financial management and investment financial management.

1, consumer finance mainly considers the normal life in the whole life cycle and is the financial arrangement for future life. For example, preparing for marriage, childbirth, children's education, pension, inheritance, funeral expenses, etc. This is due to the imbalance, unsynchronization and fluctuation of income and expenditure, and the difference of expenditure satisfaction. It is necessary to rationally manage financial objectives and flexibly allocate funds according to the consumption cycle and income level of individuals and families to ensure the normal life of individuals and families.

2. Capital preservation financial management is essentially a financial guarantee of pure risk. Because of the uncertainty of risks, the birth and death of family members and the destruction of family property are often unexpected, and the resulting losses are also unpredictable. How to minimize losses when risks come, pre-arranged financial measures and correct financial planning are the most important.

3. Investment and financial management refers to the management of personal or family investment to generate wealth. The purpose is to maintain and increase the value of family assets through the investment and use of idle funds. After the above-mentioned life goals are achieved, we will pursue the best return on investing in financial instruments such as stocks and bonds, improve the living standards and quality of families, and finally realize financial freedom.

Therefore, financial management ≠ investment, financial management is not only investment, cash planning, daily consumption, accounting, how to balance is also financial management, but also the first financial planning of working class.