Around us, there are often people who clearly have a sound financial plan, but they are still the moonlight clan when they get a monthly salary. What's the reason? The main reason is that we haven't developed the following good financial habits.
Habit 1: Keep the principal
Always remember that if you keep the green hills, you will not be afraid of no firewood. The principal is the seed, without which we can not sow or harvest. Experts point out that before investing, stop-loss line must be set, investment discipline must be strictly observed, risk should be controlled in a controllable range, and the principal should always be kept in mind by every investor.
Here we also talk about Buffett's golden rule: first, keep the principal; second, keep the principal; third, remember the first and second. Soros also said that if you think you are successful, you will lose the process of making you successful. One must be willing to admit mistakes and accept pain. If you make a mistake but are unwilling to admit it, accept the pain, or even stop feeling the pain of the mistake, then you will make another mistake and lose the advantage of continuing to win. If you find that you are wrong in the transaction, you should never be stubborn, you will be wrong, you should change the direction of your operation without delay.
Habit 2: Budgeting and Implementation
Wealth does not mean how much you earn, but how much you earn. It sounds boring and overdone, but budgeting gives you enough reason to discipline yourself and help you achieve your desired goals in 2, 20, or even 40 years. Making a long-term financial budget and strictly implementing it can not only change your spending habits, aimless bad habits, but also change your outlook on money and values. The most realistic, at least, can let you have the richest wealth. And this is not exactly what a financial master pursues?
In real life, the family budget can play the following role for the family: first, management expenditure. The budget provides criteria for comparing actual expenditure with planned expenditure. When you compare the actual and budgetary expenditure of each item regularly (such as the end of the month, the end of the quarter and the end of the year), you can find out which items of expenditure have exceeded the standard and which expenditure has a balance. 2. Check liquidity. Simply put, how much liquidity do you have (cash and current deposits, etc.)? If we find that households lack liquidity, we can use budgets (especially short-term ones such as monthly ones) to monitor outflows. At this point, it may be necessary to reduce or postpone an expenditure in order to ensure sufficient liquidity to pay for the project payable. 3. Goal plan. Budgets focus on household financial goals, because most of them are related to accumulating funds. If there is no budget plan, it will be difficult to achieve the original financial objectives, whether long-term or short-term.
Habit 3: Regular Quota Savings
The concept of fixed-term savings is not to spend money first, save as much as you can, but to "save a part first, then consume". When teaching economics at Harvard University, there was a philosophy: Save 30% of your salary every month before you can spend the rest. This is known as the Harvard Doctrine. The disadvantage of saving after spending is that at the end of the month there is very little money left to save, while the "Harvard people" require that the monthly savings is the most important goal of the month, can only be overfulfilled, can not find any excuses and reasons to give up, so the remaining money will be more and more. In fact, everyone's wealth realization comes from good financial habits. No one's wealth achievement can be achieved overnight. Everyone has experienced such a hard accumulation process as from small to large.
Most financial managers believe that when you are young, you must learn to force yourself to save, even if it's 100 yuan a month, you should stick to it. Compulsory savings does not mean that you can only choose to deposit in a bank, but also pay a small amount of insurance every month and buy money market funds. Because insurance has the particularity that once the amount of insurance is interrupted, it will be invalid, and the effect of compulsion will be better. Compulsory savings, like bookkeeping, is a matter of persistence. Successful overnight wealth is the bypass to financial management, while long streams of water are the right way.
For those accustomed to money left-handed in and out of the right hand, you might as well use this method, do not leave too much cash in hand, it is better to deposit regularly. In this way, when you want to spend money indiscriminately, you also need to turn the regular into current account. Think about the troublesome procedures may have already backed down.
Habit 4: Investing with Diversified Funds
Buffett, a master investor, once said about investment: "Successful investment only requires a steady method and firm will, and adheres to long-term and decentralized investment. Unfortunately, many people's fear and greed have blocked the simplest but effective method and reason." Many people have confidence in the long-term growth of China's economy and even the world economy, and have a fixed income, but it is difficult not to be troubled by short-term economic noise. To solve this problem, the way is to invest.
When it comes to the fixed investment of funds, people are familiar with it. They invest through the fixed investment of funds. They do not interrupt the operation with the rise and fall of the stock market. They persist in investing for a long time to achieve stable growth of wealth. There are many advantages of fixed investment, such as avoiding timing, balanced investment, risk diversification, compound interest appreciation, compulsory savings, simple procedures and so on. Therefore, it is being accepted by more and more investors. In the turbulent period of the market, by means of fixed investment and gradually investing in the market at a lower average cost, we can pave the way for future profits. Fund fixed investment threshold is also low, starting point is generally 300 yuan or 500 yuan.
Fixed investment is also a way of long-term investment, Buffett also said: "If possible, I would like to hold it for a lifetime." The difficulty is that whenever the stock market fluctuates, it can reveal that most investors are still vulnerable to market news, herd mentality and band operation, and easily abandon their carefully selected stocks or funds and other financial products.
Many people complain that they can't afford to invest. In fact, investment can not be achieved by a large amount of investment. Cutting your expenses and saving every dollar, even a small amount, can bring a lot of wealth. If you start investing 100 yuan a month at the age of 24 and can make about 10% of the profit, you will have 20,000 yuan at the age of 34, and those small investments will become more than 61,000 yuan at the age of 65.
Habit 5: Care about your investments
After the implementation of the investment, it does not mean the end of the investment behavior. If you ignore your investment at this time, it will be very difficult for your investment to receive the expected return. Investment requires sustained attention and unremitting learning to maximize benefits, to keep an eye on market conditions, and to modify the investments that have been made when necessary. No one is born a financial expert. Learning to invest is a long-term process. We need to constantly collect and collate the economic and financial information around us, constantly learn investment techniques and apply them. As long as we watch and listen more, and know more about financial institutions and products, most investors can become good investors.