First Of All, 5 Ways To Manage Finances.

First,

Two, the interest income of savings is clear, the yield of financial products can not be defined beforehand, and it depends on the design and trend of specific financial products.

Choose your own financial products.

To understand yourself, you should understand the purpose of financial management, funds, financial management time, background knowledge and risk awareness.

Understand that products should not blindly follow suit, and try to choose products that are relatively familiar with them. For example, you can know more about stocks and you can choose products that are linked to stocks. If you are familiar with foreign exchange, you can choose products that are linked to exchange rate.

Even if there was no background knowledge, the bank's professional financial officers should be explained before buying.

Identify the time limit and investment direction of the financial plan, identify whether the financial plan guarantees the lowest income, whether the principal is guaranteed, whether the terms of the automatic termination of the product are agreed, and whether the party or the two parties have the right to voluntarily terminate the product in advance at the appointed time.

Understand what financial institutions know in advance which financial institutions can sell financial products, each bank's characteristics and expertise in financial products and supporting services, and choose their most trusted financial institutions.

Four rates of return

When we buy financial products, we can see that the rate of return is actually the "expected rate of return", or even the concept of "maximum expected yield".

Only when the product is due, will the rate of return calculated by the bank be "real yield", which is likely to be lower than the highest or expected yield.

Financial products are likely to generate a negative rate of return.

In addition, saving is not a worry. If the savings interest rate is lower than the inflation rate, the real interest rate is negative, and the interest earned may not be enough to compensate for the depreciation of the principal.

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Risk of financial products

"High yield must be accompanied by high risk, but high risk does not necessarily lead to high returns". This is a rule that must be kept in mind before any investment activity.

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First, professional financial officers should be selected to provide services.

Two, to ensure that the products of the income category are different from the deposits, there will be additional conditions in general. The risks arising from the additional conditions are entirely borne by the customers.

Before buying non guaranteed income products, banks should be asked to provide convincing estimates of expected yield.

Three, we can ask financial management personnel to disclose all the risks of the product, describe the most likely investment results and the various possible ways to avoid risks.

Be careful of "improper sales behavior"

The law stipulates clearly that commercial banks sell financial products to investors. They should consciously guard against the following "improper sales practices" that banks may have:

First, the bank's general product sales staff, rather than personal financial management personnel, provide clients with financial investment advisory advice and sales financial planning.

Two, when banks explain risks to customers, they do not use plain language, do not match the necessary examples, do not explain the most unfavorable investment situation and investment results.

Three, banks do not provide risk prompts to customers when they provide personal financial advisory services.

Any sale behavior that commercial banks do not sell according to the risk attribute of each investor, or do not fully expose risks to investors, thereby causing investors' economic losses, are all "improper sales".