Financial management is a Chinese word, pinyin is lǐcái, and English is Financing, which refers to the management of finance (property and debt) for the purpose of maintaining and increasing the value of finance.

Financial management is divided into corporate financial management, institutional financial management, personal financial management and family financial management. Human survival, life and other activities are inseparable from the material foundation and are closely related to financial management.

"Financial management" is often used with "investment and financial management" because "financial management" includes "investment" and "investment" includes "financial management". The so-called financial management is not only about investing in financial management, but also about being invested. If you don't know how to invest, you don't know how to manage money better.

Financial management, as its name implies, refers to financial management. When people talk about financial management, they think of either investing or making money. In fact, the scope of financial management is very wide. Financial management is to manage the wealth of a lifetime, that is, the cash flow and risk management of an individual's life. Contains the following meanings:

Financial management is a lifetime wealth, not just to solve the problem of urgent need for money.

2 Financial management is cash flow management. Everyone needs money (cash outflow) when he is born, and he also needs to make money to generate cash inflow. Therefore, whether you have money or not, everyone needs to manage money.

③ Financial management also includes risk management. Because more flows in the future are uncertain, including personal risk, property risk and market risk, which will affect cash inflow (income interruption risk) or cash outflow (cost increase risk).

Domestic institutions that can provide financial services to customers mainly include banks, securities companies and investment companies.

1. Bank investment

The wealth management products provided by commercial banks in China are generally certificates of deposit and asset management products. Funds sold by brokers or fund companies are not financial management.

2. Financial management of securities companies

Securities financing generally includes securities income certificates, asset management products and so on.

3. Insurance financing

Insurance financing tends to be long-term, focusing on solving education planning and pension planning after a long time, and solving security problems such as accidents and medical care.

4. Investment company financing

Financial management of investment companies generally includes trust funds, gold investment, jade, jewelry, diamonds and third-party financial management. With high initial capital requirements, it is suitable for high-end financial managers.

5. E-commerce financial management

2 1 century, in addition to online banking, financial search engines on the internet can also be used to search for financial products, compare risks and benefits, and then make investments.

Making money-income

1. Lifelong income includes work income generated by personal resources and financial income generated by monetary resources; Work income depends on people to make money, and wealth management income is to make money.

2. Financial income: including interest income, rental income, dividends, capital gains, etc.

money outlay

Lifelong expenses include the living expenses of individuals and families from birth to death, as well as the financial expenses arising from investment and application for credit. Some people have expenses and families have burdens. The main purpose of making money is to meet personal and family expenses. Including: living expenses: including family expenses such as food, clothing, housing, entertainment and medical care. Financial expenses: including loan interest expenses, guarantee insurance expenses, investment formalities expenses, etc.

Save money-assets

When the current income exceeds the expenditure, there will be savings, and the savings accumulated in each period are assets, that is, the principal that can help you roll money and generate investment income. In old age, when people's resources can't continue to work to generate income, they must rely on monetary resources to generate financial income or realize assets to meet the needs of the elderly. Including:

1. Emergency reserve: keep a sum of cash in case of unemployment or emergency.

2. Investment: portfolio of investment tools that can be used to generate wealth management income.

3. Purchase of real estate: purchase of self-occupied houses, self-occupied cars and other assets that provide use value.

Borrowing-liabilities

Borrow money when cash income cannot cover cash expenditure. The reason for borrowing money may be that you can't make ends meet temporarily, and you can buy real estate or automobile appliances that can be used for a long time to expand credit investment.

If the loan is not repaid immediately, it will accumulate into liabilities and pay interest according to the balance of the liabilities. Therefore, before the loan is paid off, in addition to living expenses, there will be amortization expenses of financial principal interest. Including:

1. Consumer liabilities: such as credit card revolving credit, cash card balance and installment payment.

2. Investment liabilities: for example, the margin of margin financing and securities lending, borrowing money to invest with financial leverage.

3. Self-use assets and liabilities: such as housing loans and auto loans required for purchasing self-use assets.

Save money-save money

In modern society, not all income can be used to pay expenses, but income tax, property tax, gift tax or inheritance tax must be paid if there is income, so how to legally save income tax in cash flow planning and gift tax or inheritance tax in property transfer planning has become an important content of financial management and a primary consideration for high-income individuals. Including:

1. Income tax savings plan;

2. Property tax planning;

3. Tax-saving planning for real estate transfer (widely used overseas).

Margin guarantee

The focus of capital preservation is risk management, that is, make insurance or trust arrangements in advance to protect human resources or existing property, or obtain financial management to make up for losses when losses occur.

The function of insurance is that when an accident makes the family's cash income unable to meet the expenses at that time or in the future, there is still a sum of money or income to make up the gap and reduce the impact of unexpected income and expenditure imbalance during the life journey.

In order to obtain the protection of life insurance and property insurance and make up for the loss of people or things, a certain percentage of premiums must be paid. In the event of an insurance accident, the financial income generated by claims can replace the income from interrupted work to meet the living expenses of families or survivors, and can also be used to repay debts and reduce the interest expenses of financial management. In addition, the trust arrangement can make the trust property independent of other private property, free from recourse by creditors, and has the function of protecting the existing property from losses. Including:

1. Life insurance: life insurance, medical insurance, accident insurance, disability insurance and endowment insurance.

2. Product insurance: fire and liability insurance.

Step 3 trust

4. The fund will make fixed investment.