10 steps so that you become a millionaire
Step 1: decide when to start their “own” financial management
Most people think that the concept of “financial management” with a “no cost”, and then think of financial management will reduce the consumption of the pleasure and quality of life. For the love for young people enjoy the consumption of pleasure, psychological inevitably resist “financial management” concept, “Money,” this old thing then. This is a fact? The answer of course is no. Young people do not like financial management or financial management does not know the main reason is the disregard of “people” and “money” the difference. Whole world knows that a truth “of money to students money,” saying the West is called “Money makes money”, meaning “money” chasing “money” than “people” follow “the money” more efficient and effective. So how to use the money chase money? First, of course, have a “pot of gold” – a brave and skilled master of money, and then use this money to generate money child money home Sun. But this “pot of gold” should be how come? Life, we often “Clearance Sale”
Step 2: exclude malignant liabilities, control healthy balance
If you have already determined their own financial management, you need to do is to your own financial independence. By “financial independence” means “from the vicious debt, control healthy balance, learning financial investment.” Human malignant liability is not controlled by debt, such as illness, accident, accidents, etc., these events are all liabilities arising from malignant. This case, if you buy insurance you can reduce accidents sustain losses, which exclude the vicious debt. So the first step towards financial independence is to buy a suitable insurance, financial losses caused by the accident onto the insurance company, so you no worries. Healthy balance is that you can control your debt, such as living expenses, entertainment expenses, children’s education, housing loans. In other words, you can determine their own cost of living per month, may decide to live with their parents or move away from here like to buy a house after getting married, have children and so on.
Step 3: Learning Financial Management and Investment
Mentioned earlier that the “financial independence” means “In addition to the vicious debt, debt control, and learning healthy financial investment.” In fact, the concept of financial independence is just a build, before you achieve financial independence much preparatory work, including financial literacy learning is the most important work.
Engage in rational investment
What is the rational investment? Simply means that “investors to understand the investment objectives of the content of their wants and hopes for reasonable remuneration for after the investment behavior.” Why independent financial reason to stress the importance of investing it? Because of bad investments would lead to serious debt situation! Reason, the right investment can not only be “income” greater than “expenses” to expand the gap to your financial truly independent, and can help you achieve your goals in life.
Money should be handed over to experts?
The concept of financial management to the experts is correct, because the experts can wholeheartedly into the work of financial management, and have more resources and tools that can improve your investment returns, these are the advantages of financial experts. But why they should learn financial management knowledge? Because in your financial management to the experts before the money is not on the “financial experts” are full of confidence, and to determine the “financial expert” to your best interests will be the ultimate objective of financial management, the final will also determine your investment money in your designated time to return to your pocket. If you have a full grasp, then you learn financial literacy is essential.
Step 4: Set personal financial goals and implement plans
Set financial goals
Financial goals are best based on figures measured by calculating how much you save enough money each month to select the investment rate of return is the number of investment instruments and how much time can be expected to achieve the target. Therefore, I suggest you better not be the first goal too high, the time to be achieved within 2-3 years is appropriate.
The achievement of financial goals
Personal financial goal setting, how can in the shortest time to reach this goal? Without considering other complex factors, the achievement of financial goals and the general on several parameters:
The amount invested in personally invested amount can be divided into one or more inputs into
Rate of return on investment tool investment tools can be divided into fixed deposits, funds, stocks, futures, bonds and gold. Higher return on investment, relative risk is also higher.
Time investment is the time value of money, put the longer, the larger the compensation received.
Therefore, the most basic way to set personal best to first determine the amount of input, and then select the investment instruments. In addition, the rate of return to investment vehicles over inflation, the final cumulative over time, can achieve the financial targets set.
Step 5: develop good financial habits
1000 yuan never too much, a dollar is not too few
Financial life is the first most common way to force yourself to save money every day to piggy banks, the best and this piggy is transparent, and each day recorded. Transparent piggy banks is to allow you instant access to the effectiveness of financial management, accounting records is to let you develop the habit. When you daily cumulative savings over time, to a certain number of years and then dump the deposits thin, so they will accumulate and can gradually develop the habit of their own financial saving.
Cultivate the habit of billing
Life Financial’s second step is to develop the habit of billing. The benefits of accounting is that you can know the money spent each day in what used where there is a need in the financial savings, they know where to start. Added to this, many computer software such as Microsoft Money, etc., can help you analyze the daily accounting information, so accounting in modern life has been different from the past is difficult and meaningless pieces of things.
Step 6: Investment from the fund started
Why buy investment fund from the start? That is not to be experts in finance to fund it? In fact, we stand for investment financial management remains firmly “their investment and financial management”, just one of many investment Gongju yes has investment threshold, so we have “Zanshi” Xishengbufen investment Chengben, Xian borrowing capacity to fund Gongsizhuanjia the investment to accumulate Rihou own Financial investment costs.
For example: the stock market, the lowest public investment is 1,000 shares of the primary, but a lot of merit, the stock market is a promising face value of two or three million, which makes many want to invest just the successful and financial management the stock market people are prohibitive. Although there are some stocks with a market value of less than 10,000 yuan, but these stocks have faced at any time become the “cent shares” or “penny stocks” and make any final dividend, the share price decline risk. However, investment funds can avoid “put more eggs into one basket” situation, because the fund itself will do a certain degree of diversification to avoid risk.
Step 7: Regularly check the results
As long as under the prior, things, the post control, will be done before you step in to do an integration of financial investment, you can understand the financial results of the process of regularly reviewing the importance of where we are.
Pre-control: Set financial goals, develop steps to achieve goals.
The following questions can help you:
Measure of goal setting reasonable?
A stage of life with your personal goals?
For achieving goals feasible?
You can operate to the step?
Matter of control: “account” is in control of things in the work.
You can get your own bookkeeping records of your daily life to know the status of the operation of money, when you find unusual cash flow situation, you can always know and make a response.
After control: gains and losses made when completed results of the review, is another phase of planning will need to refer to important information.
Step 8: Stock Market Investment Strategy forward
Stock market investment objectives should be phased
If you invest in the stock market is a novice, I suggest you first target the blue-chip Hang Seng Index constituents to do six months to a year of investment. As the large blue-chip equity, stock price is not easy to be speculation, liquidity higher than any other financial information transparency of listed companies and the investment rate of return is, therefore, suitable for beginners stock market for future use in advanced practice.
Step 9: The financial management of the discussion groups
With the rise of the network, the continued establishment of financial Web site, providing many retail investors can use tools such as online analytical software, the company financial statements and research reports. In fact, the most effective tool is the retail forums and chat rooms. Through the forum, you can express or understand other people’s views of certain stock-related events, do you think the credibility of the higher absorption of the argument. In the chat room, three to five like-minded friends are interchangeable information, discussion of personal finance tips, etc..
Step 10: With the change in strategy
Personal Finance is not a fixed formula, with the older, financial goals and strategies are different. Economists assume that the life cycle proposed for determining personal financial goals and strategies with the guidance role. Franco noted that life in juvenile and old age, lack of ability to work, spending more than necessary income. As for the prime of life, ability to work is busy, and know for the future (old age) to make plans, so a corresponding increase in income and savings, so their investment strategies also have to make adjustments.
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