![[Personal Finance Basics (2)] - Investment and Money Management Concepts](/_next/image?url=%2Fimages%2Fblog%2Ffb-posts%2Fen%2Ffb-post-0004-cover.png&w=3840&q=75 "[Personal Finance Basics (2)] - Investment and Money Management Concepts")
[Personal Finance Basics (2)] - Investment and Money Management Concepts
Young people usually receive a regular salary after entering the workforce. After monthly expenses and emergency reserves, any money left over becomes idle capital that can be arranged and invested.
Investment and money management concepts [Personal Finance Basics (2)]
After young people enter the workforce, they usually receive a regular salary. After paying monthly expenses and setting aside part of it as emergency reserves, any remaining money becomes idle capital.
Most people put this idle capital into a bank account in exchange for very little interest income, especially less than 2% in recent years. Others buy financial products such as stocks and bonds to increase the value of idle capital. In response to investors' diverse needs, many kinds of investment products have been created.
Investing and personal finance means arranging idle capital reasonably and putting it into higher-return investments, so the money earned can continue to grow. In other words, wealth creates wealth, and money earned is used to earn more money.
If a person wants to become wealthy, the challenge is not only how to obtain wealth, but more importantly how to use wealth to create more wealth. Therefore, [investment and financial planning] is the earliest money management concept in an investor's life. With good financial planning, one can create a prosperous future life.
The right learning mindset for financial investing:
Next, we will first talk about the investor's [right learning mindset for investing and personal finance].
What is the right mindset for learning investing? The first thing is to "discard" your previous understanding of investing and your old operating methods. Forget every method people, including experts, taught you for "rushing in and out" of the market. You must "empty" yourself and admit that you know nothing about short-term market fluctuations. Another important point is to change the old "money-making habits" you had in the stock market and relearn proper investing.
[Learning proper investing] is a very important lesson in the investing life. Without the right view of investing, financial freedom cannot be achieved.
The detailed steps for [learning proper investing and personal finance] will be explained one by one in the [personal finance basics] chapters.
Please search YouTube: CLEC Club
Or
Investment and financial education YouTube reference
https://www.youtube.com/channel/UCdWAon5jrsET9PcJ-nS-b6Q
Written date: May 23, 2016
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