Financial management is financial planning, cash flow management and risk management!
Usually financial management includes the following three meanings:
First, manage a lifetime's wealth, not solve the problem of urgent need for money.
Second, financial management is cash flow management. Everyone needs money when he is born, that is, the outflow of cash, and of course he needs to make money to generate the inflow of cash. Therefore, no matter whether you have money now or not, everyone needs to manage money.
Third, financial management covers risk management, because the future cash flow is uncertain, including personal risk, property risk and market risk, which will affect the inflow or outflow of cash.
The essence of financial management is the rational distribution of property, which can be divided into:
1. Guarantee contingency 2. The money to be spent. Qian Shengqian 4. Capital preservation and appreciation.
And investment is only the management of the "Qian Shengqian" part of financial management.
Of course, I think more people are still more interested in financial management and invest to make money.
For financial investment, some people think it depends entirely on luck, while others think it depends entirely on talent. In fact, financial investment is a kind of ability that needs long-term study and exercise.
Take investing in stocks as an example. The so-called talent, in fact, is more character strengths. Mark Serreulles, the founder of the hedge fund Sellers Capital Fund, mentioned in his speech at Harvard in 2008 that at least seven characteristics are the * * * characteristics of great investors, which is the real character strengths.
First, buy stocks decisively when others panic, and sell stocks decisively when others are blindly optimistic.
Just like Buffett's famous saying: fear when others are greedy, and be greedy when others are afraid. This requires you to be independent and think independently.
Second, great investors are people who are extremely fascinated by this game and have a strong desire to win.
To tell the truth, not everyone likes investing. Even some people are afraid of the risk of investment and prefer to put their money in the bank. However, only by being immersed in the fun of investment can we make continuous progress.
Third, a strong will to learn from past mistakes.
Many people attribute their failure to their bad luck when investing, but they are unwilling to admit that they have made a stupid decision. In this way, when investing in the future, you will still make the same mistakes and fail again.
Fourth, the innate risk awareness based on common sense.
Many people blindly believe in data and computer analysis data when investing. Instead of stopping and asking yourself, "Hey, although the computer thinks this is feasible, is it really effective in real life?"
You know the best risk control system is common sense!
Fifth, great investors have absolute confidence in their ideas, even in the face of criticism.
Many people are often not confident in their own decisions when investing in financial management. Not making a decision is more terrible than making a wrong decision.
Sixth, both the left brain and the right brain work well, not just the left brain (good at math and organization)
Some people are smart, good at math, strong in logic, and have a strong advantage in data analysis, but you need to do something else, such as judging whether the fund agent you entrust is exaggerating by speaking and acting. You need to calm down and draw a big picture of the current situation in your mind, instead of making a dead analysis.
Seventh, in the process of investment, the ability to change investment ideas in ups and downs.
Investment, especially high-yield investments such as stocks and futures, often encounters ups and downs. Many people will be blinded by the ups and downs in front of them, and give up thinking about long-term interests, strengthen your investment ideas and carry them out.
Although the above seven items were originally aimed at stock investment, the balance between income and risk is consistent in financial investment.
If you can cultivate your character in this respect, it will be of great help to your future financial investment.