Financial management is a broad concept. From the subject of financial management, individuals, families, companies, government departments and countries all have financial management activities, but what we are discussing here is mainly personal or family financial management. Personal finance and family finance are actually the same concept. In foreign countries, it is generally called personal finance (which may be related to western countries' respect for personal freedom and independence; Or from the point of view of financial intermediary, it is more appropriate to call it family financial management in China, because China is a country that values family and family values, and family-oriented financial management activities are more common. Therefore, as long as financial management is mentioned in this collection, it is family financial management. Steps and core of financial planning: the first step is to review your assets. Including stock assets and expectations of future earnings, knowing how much money can be managed is the most basic prerequisite. The second step is to set financial goals. It is necessary to define the financial target qualitatively and quantitatively from the specific time, amount and description of the target. The third step is to find out what kind of risk preference. Don't make the assumption of risk preference without considering any objective situation. For example, many customers put all their money into the stock market without considering parents, children and family responsibilities. At this time, his risk preference deviated from the range he could bear. The fourth step is to allocate assets strategically. Do asset allocation in all assets, and then choose investment varieties and investment opportunities. The core of financial planning is the process of matching assets and liabilities. Assets are previous stock assets and income capacity, that is, future assets. Debt is a family responsibility, supporting parents, raising children and sending them to school. The second is the goal, which has become our debt. To have a high-quality life and dynamically match your assets and liabilities is the core concept of personal finance. There are many hot spots in financial investment, which can be summarized as eight aspects: 1. Speculation in gold: Since China Bank launched the "Huang Jinbao" business for individual investors in Shanghai, speculation in gold has been a hot spot in the personal finance market, attracting investors' attention and favor. Especially in the past two years, the international gold price has continued to rise. It can be predicted that with the gradual opening of the domestic gold investment field, the future gold demand growth potential is huge. Especially after 2004, the pricing method of domestic gold jewelry will gradually change from the integration of price and fee to the separation of price and fee, and the 5% consumption tax on gold jewelry is expected to be abolished, which will greatly promote the increase of gold investment, and the gold speculation business will surely become a bright spot in the field of personal financial management and truly enter the golden age of investment and financial management. 2. Funds: Since the successful issuance of the first batch of closed-end funds in 1997, funds have been highly praised by domestic individual investors. Last year, funds have obviously exceeded deposits and become the top priority in many aspects of investment and financial management. According to relevant data, the net value of domestic funds has reached nearly 200 billion yuan this year, accounting for more than 10% of the circulating level of A shares. Many investors are still very optimistic about the advantages and characteristics of the fund, such as stable income and low risk, and hope to obtain ideal income through the investment of the fund. 3. Stock trading: The supply and demand of funds in the domestic stock market is relatively optimistic, which is undoubtedly a shot in the arm for the capital-driven China stock market. In addition, China Securities Regulatory Commission has put forward stricter requirements on the performance calculation and financing amount of listed companies, and strengthened the supervision of the stock market, which will bring profit opportunities to investors. But in any case, the biggest feature of the stock market is uncertainty, opportunities and risks coexist. Therefore, investors should continue to be cautious and seize opportunities before investing. 4. National debt: 2005 was a year of innovation in the national debt market, which not only increased the variety of national debt, but also gave investors more choices. New attempts and reforms have also been made in the way of issuing treasury bonds, which has further improved the marketization level of issuing treasury bonds and minimized the interference of non-marketization factors. In addition, the secondary market of national debt will also become the focus of development next year. It can be seen that this series of innovative actions of national debt will certainly bring more investment choices and greater profit space for investors. 5. Savings: Over the years, savings, as a traditional way of financial management, has long been deeply rooted in people's hearts. Most residents still regard savings as the first choice for financial management. On the one hand, because the momentum of foreign capital flowing into China is still strong, the base money supply in China has increased; On the other hand, in order to moderately control the rise of price index and inflation rate, the government adopted the means of raising interest rates, and the floating range of interest rates was further expanded. The rise in interest rates will certainly stimulate the increase in savings. 6. Bonds: In recent years, the bond market has become unexpectedly hot. There are indications that the issuance of corporate bonds may still accelerate in 2005, such as convertible bonds, subordinated bonds of floating rate notes and banks. Will become a good investment variety. In addition, the China Banking Regulatory Commission will include subordinated term debt in tier 2 capital to supplement the capital structure of commercial banks, which will make banks ready to issue bonds, which will once again add fuel to the fire in the bond market. 7. Foreign exchange: In recent years, the continuous decline in the exchange rate of the US dollar has made more and more people make a lot of money through personal foreign exchange transactions, which has also made the foreign exchange market extremely hot. Various foreign exchange wealth management products have also been launched one after another, such as the foreign exchange of commercial banks, the foreign exchange treasure of China Bank and Agricultural Bank, and the American Express Huitong of China Construction Bank for investors to choose from. Next year, the Chinese government will continue to adhere to the principle of RMB stability, and take measures such as linking RMB to foreign exchange and increasing the autonomy of enterprises in foreign exchange to promote the healthy development of the foreign exchange market. Therefore, according to experts' analysis, there will be more room and opportunities for making profits by investing in the foreign exchange market next year. 8. Insurance: Compared with other tepid insurance markets, income-based insurance is highly sought after by people once it is launched. Generally, there are many types of income insurance, which not only has the most basic protection function of insurance, but also can bring investors a lot of income, which can be described as a win-win situation for protection and investment. Therefore, the purchase of income insurance is expected to become a new hot spot for personal investment and financial management.