Investment and financial management is not only the pursuit of capital benefits, but also the more important thing is to make financial planning. Scientific financial management can help maximize their financial benefits. What are the investment and financing methods?
1.Adopt long-term, purchasing and holding investment strategies
85% of high net worth investors said that they have obtained huge profits through long-term purchase and holding strategies, and the main financial management methods of this type are stocks and bonds. Buffett is an active advocate and beneficiary of this approach. He said that he should not pay too much attention to the short-term trend of the market. He should invest in companies with good potential and qualifications for a long time. If he is selected, he should plan to hold them for 10, 20 or even 30 years.
2. Investment in tangible assets
About half of high net worth investors said that they have some tangible assets, such as investment in real estate or farmland, which can not only generate income, but also have appreciation potential. However, experts also suggest that investment should be diversified. Real estate with appreciation potential can be used as one of the sources of diversified income. However, if one has a lot of real estate, it may not be a wise choice to buy more.
3. Delayed enjoyment
More than 80% of high net worth investors said that long-term targeted investment is more important than current consumption. McBride, chief financial analyst of financial management website Bankrate.com, said that if you want to simply accumulate wealth, it is the best choice to delay enjoyment. "If you start to consume what you should have left, you will eventually find that you have nothing", he said. If you save $100 a month for retirement, you will save about $40000, which is equivalent to a 5% return. On the contrary, if you spend the $100 a month, you will miss more than $15000 in revenue. Experts said that not everyone can pay attention to this suggestion, because many people can hardly ignore the current material needs, so the most important thing is to distinguish what is necessary for life (such as basic food, shelter, clothes, etc.) and what is desired.
4. Reasonably adapt to credit
About 30% of high net worth investors said they thought credit was a decent way to accumulate wealth, while four fifths said they knew when and how to use credit as their financial tool. Of course, there are risks to this strategy. Remember, credit can also become an expensive burden. However, some financial advisers suggested that this approach could be considered for those smart individuals. Experts suggest that those who can pay off their credit card loans every month should use merchant feedback cards as much as possible, or use spending items with cash or other welfare rewards. In addition, for those fixed loans with low interest rates, such as some mortgages or student loans, it is reasonable to delay the repayment. Instead, you should first use the extra money to support your pension fund. In this way, it is equivalent that you are using the bank or government money to reserve your pension fund. (Of course, the loan to be repaid should still be repaid within the time limit.
Conclusion
According to the above methods, you can obtain scientific investment and financing options. Follow the above methods, and you will soon achieve the goal of financial freedom.
