What is the difference between investment and financial mana
: Financial management
In today's rapidly evolving economy, there are more and more tools and means to make money. How to distinguish between what is investment and what is financial management is particularly important. How do we make every penny in our field play a bigger role? Let's take a look at some netizens' views on investment and financial management. [Answer 1] In contrast, investment pursues short-term gains and financial management pursues long-term gains. From the perspective of purpose, investment emphasizes return (input-output ratio) and wealth management emphasizes stability (long-term); in a nutshell, investment is for today More money and financial management is for the future. The advantage of investment is to earn the money now. The advantage of financial management is to have your own money for a long time. The disadvantage of investment is that there are risks everywhere. The disadvantage of financial management is that it will not make a lot of money, because investment is risky, so At the same time of investment, we must make a good reserve. This process is called financial management. Dividend insurance as a wealth management product, it will not bring you high income immediately like investment, but it can ensure that you have a stable money. Especially when your investment is at risk, it can save lives! Insurance is not an investment but a financial management. Insurance does not immediately produce benefits, but it can withstand risks. If you invest, you must manage your finances at the same time. You can not invest, but you can't save money! [Answer 2] Investment is to invest the existing property into a production material, fixed assets, technology, special products that the investor believes has investment value and is expected to gain value. And the behavior of the money; and the management of wealth, is to use the existing property to the best way for financial planners to use. The fundamental purpose of investment is to increase the value of the property, so that investors can obtain a considerable income. It has certain risks and is strongly influenced by human factors. The fundamental purpose of financial management is to preserve the value of the property so that the wealth manager can be as large as possible. The use of property, it is less risky than investment, and the influence of human factors is weak. Financial management is more extensive than investment. Ordinary people can generally learn to manage their finances, such as: picking cheap and beautiful consumer goods, depositing money into banks, buying funds, insurance, and so on. People who manage financial affairs do not necessarily invest, but those who invest will have to manage their finances. Financial management is the basic quality of a person. A housewife will use the first dollar earned to buy food and clothing for the maintenance of basic life, to educate the second child for the second child, and to place the fourth money for the family with better conditions. Into the bank or buy small-risk funds, treasury bonds, insurance for future needs, the fifth dollar to buy beautiful jewelry, the sixth money to donate charity projects... Anything that would do the above-mentioned housewife do or do better than it A better person will manage money, and knowing that my above story is about the "marginal effect" in economics, I believe that he will invest or have investment potential. [Answer 3] Investment is not equal to financial management. Financial management is a long-term and comprehensive planning of wealth. It is a means of using various investment products to achieve a combination of diversification risks and achieving target rate of return. Five steps of financial management: Step 1: Define your financial goals and understand what kind of financial management you are in; Step 2: Understand risk tolerance; Step 3: Long-term financial management, mandatory savings, compounding effect; Step 4: Combine investment and establish a financial pyramid; Step 5: Use life insurance as a financial plan to improve your "three big pieces." Investment is to use money to make more money. Financial management is to arrange the money reasonably to ensure more money.