[Haochedai App] A must-read for financial novices, blindly following the trend is not advisable

For novices in financial management, they are often confused about the order in which they should sort out their finances. Most people will invest first, then prepare a risk reserve, then insure, and then pass on property. However, the advice of financial management experts is to prepare a risk reserve first, then carry out insurance planning, then make investments, and finally pass on the property. If you get it in the wrong order, it is likely to affect your financial planning and final results.
Many novices in financial management, especially young people, easily have the misconception that I am too young to manage money and that only rich people can manage money. Another mistake that novices often make is to blindly follow the trend of investment and only pursue high returns. Ms. Liu told reporters that when she first came into contact with financial management, she was hard-pressed to make a choice among the various investment tools, so she had to follow her colleagues and friends to buy them. However, colleagues and friends were not necessarily experts in investment and financial management, so the ones that Ms. Liu bought at that time were not suitable. Her participating insurance also bought a fund that lost thousands of dollars. When blindly following the trend of investment, Ms. Liu said it was all because the returns of the products recommended by her friends sounded very attractive and were higher than bank interest rates. Some promoted the return rates to be above, but because the product instructions were difficult to understand, she did not study them carefully. Having passed the product, she made the mistake of chasing high returns and ignoring risks.
For novices in financial management, credit cards are a double-edged sword. Because many credit cards have launched various promotions, he once applied for a credit card from a different bank under the encouragement of the staff. But the result was that multiple credit cards caused confusion in financial management. He confused the final repayment dates of each card, and promotions may not be able to catch up in time. At the same time, having multiple credit cards can easily lead to the practice of paying for one's credit card, which can lead to frequent arrears. There is no wealth accumulation effect and it is not easy to get upgraded services from any bank. Failure to remember the final payment date can also lead to late payments, which is why many cardholders have gray spots on their credit records. How to improve
Just as traveling is half done once you start, the same is true for financial management. In fact, everything in life is closely related to financial management. How much does it cost to buy groceries today, how much does it cost to take the bus, how much does it cost to spend on clothes, etc. Reasonable consumption and rational shopping are also financial management. Investors are reminded not to blindly follow the trend of investment as a matter of course. According to a previous survey, 70% of people did not read the product instructions before purchasing bank financial products, which shows that blind investment is still common. It is recommended that investors need to fully understand the investment tools, such as understanding the direction of capital investment, where the risks are, whether the principal can be redeemed, etc. As for high-yield financial products, he suggested that you first shop around to find products that are within your risk tolerance, then learn about the product's capital investment risks, liquidity, etc., and finally decide to purchase based on your own financial needs. It is enough to have one credit card. Don’t blindly open multiple credit cards just for the sake of discounts.