Most families are middle class, and every penny in the family depends on hard-earned money. Therefore, they are conservative investors, unwilling to bear the risk of capital loss, so bank deposits have become their main financial management method.
However, at present, in this era of negative interest rates and high inflation, the money we have in the bank will never run faster than the inflation rate, and there is almost no room for appreciation. How can we achieve the effect of asset appreciation?
Therefore, from the perspective of asset allocation, we should gradually reduce the proportion of savings assets and increase the proportion of investment in other financial instruments.
2. The investment income fluctuates too much
This may be a common phenomenon in family financial management, either making a lot of money or losing a lot.
However, common does not mean normal. The purpose of our investment and financial management is to make the wealth grow steadily, and the income fluctuates too much, which has no other benefits except causing people's panic.
When you find that your investment income fluctuates too much, more than 90% may be that your assets are misallocated and the proportion of high-risk investment is too large.
Asset allocation must be carried out reasonably. Don't put your eggs in one basket. What's more serious is whether these baskets are in a car.
For example, an investment fund bought a 100 fund to spread the risk. Results 100 funds were all stock funds. This has not achieved the effect of dispersing risks.
3. Only pursue short-term interests
Investment and financial management is a technical activity, and long-term investment can get high returns. In real life, many people are more willing to pursue short-term gains.
Investment cost, investment period and investment return are the three core elements that determine investment wealth. If you choose a product with relatively low risk and relatively high return, you can still invest for a long time, and the return will be dozens of times that of your short-term investment.
The magic of compound interest is to snowball your principal. But the lever to pry compound interest is time. Without the accumulation of time, the expected benefits cannot be realized.
Long-term investment should become the mainstream of family financial management. 70%-80% of family assets can invest in some low-risk financial products, such as money funds, P2P, bond funds and so on.
Other funds can invest in some high-volatility, high-yield wealth management products, such as stocks and equity funds, but it is equally important to remember that taking profits in time is as important as stopping losses in time.
The above are some contents about the "risk omen" that should be paid attention to in family financial management. I believe these contents will deepen our understanding of financial management knowledge and better help us to carry out targeted financial management operations in related fields!