Current Financial Management Trends

Identifying financial trends for the future helps you gain a comprehensive view of the market and devise smarter and more effective financial management plans.

In an environment of high inflation and currency depreciation, many businesses are experiencing reduced profits, leading to workforce cuts and income reductions for affected employees. At this time, personal financial management becomes more crucial than ever. So, what are the financial management trends that can help you thrive in today's era?

Firstly, financial management through smart applications.

The common situation among young people today is earning decent amounts of money but still facing financial crises due to poor financial management. Understanding your cash flow helps you achieve a better quality of life, avoid debt, prevent financial stress, and, above all, accomplish significant future goals.

Smart expense management apps integrated into smartphones are readily available on Google Play or the App Store, making it convenient to track, manage, record, and set budgets for various categories. These apps also automate consumption indexes and profit calculations on a monthly or yearly basis, depending on user preferences.

Their diverse feature designs facilitate the management and analysis of your spending habits through comparison charts, enabling you to evaluate expenditure disparities in categories like essentials, entertainment, savings, and investments. Consequently, you can easily adjust your cash flow and change your spending behaviors.

Moreover, some financial apps link with brokerage firms, banks, etc., allowing users to invest and save directly on the interface without the need for third-party platforms.

Thus, contemporary personal finance management apps are indeed an effective solution to help users develop habits of recording, tracking, and optimizing their finances.

Secondly, diversifying income sources and pursuing financial freedom trends.

Instead of relying solely on fixed monthly salaries, many people are seeking additional income sources to shorten the path to financial freedom and become wealthier.

Diversifying income sources is akin to diversifying investment portfolios; if one source suffers, others will compensate. Active income, earned through effort, contrasts with passive income, which is received with minimal labor and time.

What we need to do is choose investment channels that match our risk appetite. You can save, speculate on gold, engage in real estate, invest in stocks, cryptocurrencies, etc., each with its own pros and cons.

For instance, savings offer low interest rates, hoarding gold is risky, wholesaling is inconvenient, stock trading requires expertise due to market volatility, and investing in forex and cryptocurrencies carries legal risks due to non-recognition by Vietnamese law.

Many mistakenly believe passive income means doing little work and earning quick money. In reality, it's not easy to earn this money. While you put in less labor, you need to invest time, skills, experience, and intellect to turn them into cash.

To build multiple income sources, set clear goals, work with discipline, as your primary job is your biggest income source.

In the current moment, investors have an advantage thanks to the fast and widespread internet system, fully utilizing technological strengths in investment applications. You can quickly access information through various mass media channels, facilitating timely transactions.

Thirdly, responsible consumption.

Responsible consumption involves spending and using resources consciously, effectively, and with awareness of the available resources.

When buying goods, it means meeting your own needs or desires while also triggering a series of related economic, social, and environmental processes. Therefore, you should purchase what you can consume, fitting within your actual economic capacity, and choose products not only based on price and quality but also respecting the surrounding environment.

Fourthly, building emergency funds for the future.

Financial experts often liken emergency funds to a "lifebuoy" for the future. Indeed! Imagine a sudden unexpected event occurs, your salary hasn't arrived yet, or you've been unemployed for a long time, your friends and family are not around – what would you do then? That's where personal emergency funds come in handy!

Life is unpredictable, constantly changing without any set order. Building emergency funds helps you deal with difficulties promptly, avoid subsequent financial problems.

Moreover, you can be proactive in economics, without needing to borrow or rely on others, while still ensuring no impact on your personal finances. With it, you can also stabilize your mindset, be confident at work, and make more effective decisions rather than falling into a crisis.

Note that this is not money for future purposes or investments; it's an emergency fund for risks and unexpected events, helping you maintain your living standards at that time.

It's advisable to develop a habit of allocating money to emergency funds monthly, with this fund covering at least 3-6 months of your living expenses. You can also purchase life insurance to minimize financial risks. The total amount saved per year may be higher, depending on the time frame for building the fund and specific expenses that may arise.

Fifthly, online investment becoming a trend.

Online investment is gradually becoming a trend and dominating the financial market in recent years. It involves investing in products or services via the internet, with transactions conducted entirely online, without the need for face-to-face meetings. Participants can still earn profits, increase assets, and create additional sources of income.

Currently, with just a device connected to the internet like a smartphone, tablet, or laptop, you can start investing. Online investment portfolios are also extremely diverse, and you can access them even with minimal capital.

Several investment models include stock trading, mutual fund investments, derivatives trading, online trading, forex trading, cryptocurrencies, etc. Investors can invest directly without intermediaries or through intermediary channels. For example, you can invest in funds through fund management