9 steps, start to slowly accumulate investment and financial ability - passive income research notes of two girls 3

Recently, I saw the word "financial literacy" in the book of Japanese best-selling financial writer Kazuyo Katsuma. The simple understanding of this word is the understanding of basic financial and financial knowledge. Kazuyo Katsuma lamented in the book that Japan's financial literacy education is insufficient. As a result, ordinary Japanese do not understand the importance of investment and financial management, and only know how to keep money in the bank.

But I think it's not just Japan, I think Taiwan's financial literacy education is also very insufficient, at least in the process of two girls growing up, whether it is school education, family education (both girls grew up in ordinary well-off families), the general public I don't think I've gotten enough nutrients from the media content to let me really understand the investment and financial management. Therefore, for a long time, the two girls have been ignorant about investment and financial management. It is true that we all have some investment, but these investment suggestions may come from friends around us, financial advisers of banks, etc. We really have nothing to do with the rules of the game in the entire market. clue. Sounds a little scary, right? We feel the same way, so we started to organize the research notes of the "Passive Income Series".

With so much financial information out there, where do I start?

Where exactly does the development of so-called financial literacy and investment competencies begin? There are various investment and financial management books in the market, and various media and new media also have different experts sharing relevant content. The vast sea of knowledge confuses us where to start. . Later, we figured it out—don’t think too much about it, which financial book/magazine is pleasing to your eyes, which media and new media you are happy with, just pick it up/open it and start reading it, just start contacting, slow down Slowly you will find your way out of it.

I think the ten steps to develop financial literacy mentioned in Kazuma Kazuma's book is a good reference. Although this book is a little old "Don't keep your money in the bank - Under the financial turmoil, you should actively manage your money", but these steps It will not be inapplicable because of the passage of time, I will share it with you~

Nine Steps to Financial Literacy

1. Firm determination to invest

In fact, many financial experts have said similar things. When you start trying to do it, you will suddenly realize that "it turns out that investment is all about it". Maybe your fear of investing and your desire to escape will also decrease.

2. Determine the budget and target of the investment

This part has to be set according to the individual situation, but please remember to do what you can and set realistic, achievable goals.

3. Open an account with a securities company

4. Start regular fixed investment

Katsuma Kazuo’s keywords for newbies are: 1. Zero-fee fund, 2. Index fund (a fund that is cheaper than general fund management fees, follows the market, and is relatively stable). Moreover, it is also possible to further diversify the investment targets, for example, to allocate assets by means of the quadratic method (domestic/foreign X index funds/bond index funds).

5. Within a few months to half a year, learn while investing to lay the foundation

Books/magazines that are pleasing to the eye, and media that are pleasing to the eye, just turn it over/open to read it, and you don’t need to fantasize about carefully selecting the ground-breaking content to read.

6. Challenge Active Growth Mutual Funds

The risk of index funds is small, but it also means that there will not be too dazzling investment returns. Therefore, after you have some basic investment experience, you can also consider different allocation combinations, but you still need to remember to properly allocate investment assets.

7. Learn about risk management

"Diversified investment" and "regular fixed-amount purchase" are the simplest risk management methods. More advanced risk management methods include "Sharpe ratio", etc. You can regularly refer to various figures calculated by credit rating agencies such as Morningstar. Convert investment targets.

8. Learning to put knowledge into practice

9. Develop the habit of rebalancing your portfolio

Every once in a while, review your investment balance to ensure the rationality of your asset allocation.

Focus on:

It's never too late to learn, so hurry up and start developing your financial literacy step by step!