Money management is now an integral part of our lifestyle and learning how to manage money is the only way to achieve wealth freedom with a limited income. Today, everyone wants to know how to manage their money in order to grow their assets. Different subjects such as family companies and individuals have different ways of managing their money. Wealth is a very important part of life and having an adequate financial base can make life better, so let's talk about what a newbie needs to prepare to start managing their money.

Money management is the way to manage your property. In simple terms, the process of using the capital in hand to invest or store it and then making money to enrich income is called money management.

1. Understand your financial situation

The first step in managing your finances is to understand your financial situation, to distinguish between what are fixed assets, current assets and real estate, and how much is necessary and unnecessary expenditure. Divide these categories and allocate the use of your income wisely.

2. Open a financial account

The second step to do is to go to banks and securities companies for financial accounts, generally to banks for savings-type financial business, or let the bank recommend some banking business in the range of specialized financial products, but here we must remember that financial products must ensure that the cost, in this regard to the bank's financial business risk is relatively small.

3.  Choose a suitable financial product for yourself

There are many financial products, including bank wealth management, stocks, bonds, funds, futures, foreign exchange, gold and so on, different products have different risks, investors need to choose the right financial products according to their own risk tolerance, and then you can buy financial products through banks, securities companies, financial institutions and other channels. General treasury bonds, term, bank wealth management products to go to the bank to buy; and the field fund, treasury reverse repo, stocks and other investments need to go to the securities company; over-the-counter funds are in the fund company or Internet sales platform to buy the commission will be more preferential.

4. Be prepared mentally

Managing money is not an easy task, all people choose to manage their money in order to make their property increase in value and be able to keep on increasing, but apart from bank savings, most other financial management is not always guaranteed to be safe, especially when it is done through stocks of securities companies, it is very likely that after buying stocks they do not go up, but fall more and more. Some people can not withstand the blow sickness, or even overnight to lose their homes and commit suicide, so have a good mindset, reduce the gambler's mentality, reasonable planning li no matter what kind of financial planning you intend to do, you must be sure that you can bear the risks involved, be prepared for this psychological.

（Writer：Bob）