With housing prices remaining stubbornly high and the money in your pocket constantly inflated by rising prices, if you don’t start managing your finances early, the value of your hard-earned assets will plummet, significantly reducing the rewards of your hard work. Want to save for a home and build a stable nest egg to live your ideal life? We recommend reading this “Beginner’s Guide to Financial Management” to get started with the right concepts and steps, and explore further learning channels to help you plan your assets effectively.
How should beginners manage their finances? Start by understanding these three basic concepts.
As the saying goes, “If you don’t manage your money, your money won’t look after you.” If you want to maximize the value of your assets, you’re welcome to start by understanding the following three basic concepts:
Financial concept 1: Reasonable expenditure reduction
“Cutting expenses” is the most basic step in financial management. Especially for those who have just entered the workforce, it is recommended to adopt financial methods such as “631”, “541” or “Six Jars” to allocate assets proportionally. Besides, developing a habit of keeping accounts can help control each expense, ensuring that every penny is used purposefully and reducing the chance of extra spending due to impulsive consumption.
Financial Concept 2: Increase Income
In addition to accumulating assets by cutting expenses, “increasing income” is an indispensable part of wealth accumulation. Since static assets will gradually depreciate with inflation, it is advisable to start managing finances early. By taking advantage of the benefits of time and the effect of compound interest, you can build up the scale of your assets.
Financial Concept 3: Master Correct Investment Concepts
Before making investments, it is necessary to pay attention to the concept of “diversifying risks” and choose appropriate financial products based on one’s own financial situation. Moreover, before entering the investment market, one should first have savings in hand. This way, when an unexpected situation arises, there will be the ability to deal with it. Generally speaking, it is recommended to prepare at least enough funds to cover six months of daily living expenses. For example, if the monthly living expense is 15,000 yuan, then the account should have at least 90,000 yuan, which can be regarded as sufficient reserve funds.
Master the 3 Major Financial Management Steps and Allocate Funds Reasonably
After understanding the basic financial management concepts, let’s further grasp the detailed financial management steps and start formulating a financial plan!
Financial Management Step 1 for Beginners: Set Short-Term Goals First
Financial management is a long journey. Without setting goals, it is easy to lose motivation and give up halfway. Therefore, it is recommended that beginners, when trying to develop a financial management habit, start by setting short-term goals. For instance, saving up a fund for a motorcycle within half a year, or saving for a down payment on a house within five years. It is not advisable to set overly long-term goals; otherwise, one may waver because the goals seem too distant.
Financial Management Step 2 for Beginners: Record Income and Expenses in Detail
As mentioned earlier, when beginners manage their finances, they need to record income and expenses in detail to accurately keep track of spending and then formulate a suitable financial plan. Nowadays, there are quite a few emerging account book apps; they not only have simple and easy-to-understand interfaces but also feature reward mechanisms, making them quite suitable for those who are just starting to practice keeping accounts.
Financial Management Step 3 for Beginners: Regularly Review Spending Habits
After developing the habit of keeping accounts regularly, you can then review your spending habits at the end of each month. Observe which area your biggest expenses go to and then think about how to reasonably reduce that expenditure. For example, if you find that the largest proportion of your spending is on food, you can try to cut down on meal costs—such as cooking at home one day a week, limiting yourself to having late-night snacks only twice a week, and so on—to gradually achieve the goal of increasing savings.
Introduction to Investment Entry Channels for Beginners: Make Good Use of 3 Major Resources for Financial Planning
Want to keep up with the times to learn investment knowledge and master more financial management methods? You can make good use of the following 3 major resources to properly carry out financial planning:
Investment Entry Channel 1 for Beginners: Online Articles
Nowadays, there are abundant resources on the internet. If you want to learn about a specific investment topic, you can just enter keywords into a search engine and find relevant materials. Whether it’s business media websites, personal blogs, or government press releases, you can access them all. Moreover, most financial articles are presented in a list format, with a clear structure, making them a convenient channel for beginners to initially understand investment terms and emerging financial trends.
Investment Entry Channel 2 for Beginners: YouTube Video Tutorials
There are many videos on YouTube that explain financial management and investment insights. Through the dynamic presentation of video content, it’s easier to help users stay focused and keep up with the learning progress along with the videos. In addition, novice investors can also select suitable video channels based on topics they are interested in or YouTubers they like, which can boost their motivation to learn.
Investment Entry Channel 3 for Beginners: Professional Banks’ Blogs
If you’re worried about the credibility of online information, browsing professional banks’ blogs is a more reliable way to learn. Some banks set up financial columns, presenting relatively complex terms and concepts in an easy-to-understand way for investment newbies. Furthermore, they will also explain application procedures and details in detail, allowing the concepts learned to be practically applied to real investment scenarios and achieving the effect of putting knowledge into practice.
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Beginner’s Guide to Financial Management: Grasp Correct Concepts and Learning Channels in 3 Minutes – Easy for Newbies to Get Started
2025-08-26T16:53:06
With housing prices remaining stubbornly high and the money in your pocket constantly inflated by rising prices, if you don’t start managing your finances early, the value of your hard-earned assets will plummet, significantly reducing the rewards of your hard work. Want to save for a home and build a stable nest egg to live your ideal life? We recommend reading this “Beginner’s Guide to Financial Management” to get started with the right concepts and steps, and explore further learning channels to help you plan your assets effectively.
How should beginners manage their finances? Start by understanding these three basic concepts.
As the saying goes, “If you don’t manage your money, your money won’t look after you.” If you want to maximize the value of your assets, you’re welcome to start by understanding the following three basic concepts:
Financial concept 1: Reasonable expenditure reduction
“Cutting expenses” is the most basic step in financial management. Especially for those who have just entered the workforce, it is recommended to adopt financial methods such as “631”, “541” or “Six Jars” to allocate assets proportionally. Besides, developing a habit of keeping accounts can help control each expense, ensuring that every penny is used purposefully and reducing the chance of extra spending due to impulsive consumption.
Financial Concept 2: Increase Income
In addition to accumulating assets by cutting expenses, “increasing income” is an indispensable part of wealth accumulation. Since static assets will gradually depreciate with inflation, it is advisable to start managing finances early. By taking advantage of the benefits of time and the effect of compound interest, you can build up the scale of your assets.
Financial Concept 3: Master Correct Investment Concepts
Before making investments, it is necessary to pay attention to the concept of “diversifying risks” and choose appropriate financial products based on one’s own financial situation. Moreover, before entering the investment market, one should first have savings in hand. This way, when an unexpected situation arises, there will be the ability to deal with it. Generally speaking, it is recommended to prepare at least enough funds to cover six months of daily living expenses. For example, if the monthly living expense is 15,000 yuan, then the account should have at least 90,000 yuan, which can be regarded as sufficient reserve funds.
Master the 3 Major Financial Management Steps and Allocate Funds Reasonably
After understanding the basic financial management concepts, let’s further grasp the detailed financial management steps and start formulating a financial plan!
Financial Management Step 1 for Beginners: Set Short-Term Goals First
Financial management is a long journey. Without setting goals, it is easy to lose motivation and give up halfway. Therefore, it is recommended that beginners, when trying to develop a financial management habit, start by setting short-term goals. For instance, saving up a fund for a motorcycle within half a year, or saving for a down payment on a house within five years. It is not advisable to set overly long-term goals; otherwise, one may waver because the goals seem too distant.
Financial Management Step 2 for Beginners: Record Income and Expenses in Detail
As mentioned earlier, when beginners manage their finances, they need to record income and expenses in detail to accurately keep track of spending and then formulate a suitable financial plan. Nowadays, there are quite a few emerging account book apps; they not only have simple and easy-to-understand interfaces but also feature reward mechanisms, making them quite suitable for those who are just starting to practice keeping accounts.
Financial Management Step 3 for Beginners: Regularly Review Spending Habits
After developing the habit of keeping accounts regularly, you can then review your spending habits at the end of each month. Observe which area your biggest expenses go to and then think about how to reasonably reduce that expenditure. For example, if you find that the largest proportion of your spending is on food, you can try to cut down on meal costs—such as cooking at home one day a week, limiting yourself to having late-night snacks only twice a week, and so on—to gradually achieve the goal of increasing savings.
Introduction to Investment Entry Channels for Beginners: Make Good Use of 3 Major Resources for Financial Planning
Want to keep up with the times to learn investment knowledge and master more financial management methods? You can make good use of the following 3 major resources to properly carry out financial planning:
Investment Entry Channel 1 for Beginners: Online Articles
Nowadays, there are abundant resources on the internet. If you want to learn about a specific investment topic, you can just enter keywords into a search engine and find relevant materials. Whether it’s business media websites, personal blogs, or government press releases, you can access them all. Moreover, most financial articles are presented in a list format, with a clear structure, making them a convenient channel for beginners to initially understand investment terms and emerging financial trends.
Investment Entry Channel 2 for Beginners: YouTube Video Tutorials
There are many videos on YouTube that explain financial management and investment insights. Through the dynamic presentation of video content, it’s easier to help users stay focused and keep up with the learning progress along with the videos. In addition, novice investors can also select suitable video channels based on topics they are interested in or YouTubers they like, which can boost their motivation to learn.
Investment Entry Channel 3 for Beginners: Professional Banks’ Blogs
If you’re worried about the credibility of online information, browsing professional banks’ blogs is a more reliable way to learn. Some banks set up financial columns, presenting relatively complex terms and concepts in an easy-to-understand way for investment newbies. Furthermore, they will also explain application procedures and details in detail, allowing the concepts learned to be practically applied to real investment scenarios and achieving the effect of putting knowledge into practice.