What is family finance?

Financial management is a broad concept. From the subject of financial management, individuals, families, companies, government departments and countries all have financial management activities, but what we are discussing here is mainly personal or family financial management. Personal finance and family finance are actually the same concept.

In foreign countries, it is generally called personal finance (which may be related to western countries' respect for personal freedom and independence; Or from the point of view of financial intermediary, it is more appropriate to call it family financial management in China, because China is a country that values family and family values, and family-oriented financial management activities are more common. Therefore, as long as financial management is mentioned, it is family financial management.

Family financial management is an economic activity to manage one's own wealth and improve the efficiency of wealth use. Financial management is also the scientific and rational operation of capital and liability assets. Generally speaking, financial management is the way to make money, save money and spend money. Financial management is financial management.

Speaking of financial management, it is a very common thing, but it is actually very learned. Family financial management is a new practical science, which is a marginal science guided by economics (pursuing the goal of maximization), based on accounting (objective and faithful records) and taking finance as a means (planning and meeting future financial needs and maintaining the balance of assets and liabilities).

Since family financial management is a science, we should treat it with a scientific and rational attitude. Only in this way can we achieve the purpose of financial management.

Some people think that there is too little money to manage money. In fact, this idea is wrong. Because I don't understand the purpose of financial management.

The fundamental purpose of family investment and financial management is to preserve and increase the value of family property, or to maximize family wealth. Furthermore, the pursuit of wealth is the pursuit of success and the pursuit of self-realization of life goals. Therefore, we advocate scientific financial management, that is, to make good use of money, make the family financial situation in the best state, meet the needs of all levels, and thus have a rich life. In this sense, everyone needs to manage money.

Professionally speaking, family financial management is to determine the staged life and investment goals, examine their own asset allocation and affordability, adjust asset allocation and investment structure according to experts' suggestions or their own learning, keep abreast of asset status and related information, and maximize the income of family assets by effectively controlling risks.

We can form a cycle of the above processes, or simply call it a financial management ring, and financial management activities are all carried out around the above processes. Through study and practice, I will constantly improve my financial management ability and be the master of my wealth. (uwin finance)

(Editor: Luo Zujin) * * * Find the relevant webpage.