In today ' s society, there is a growing interest in personal financial planning, and there is a strong interest in the provision of the reserve as an important component of personal financial planning. Some would keep the reserve in a bank or in a deposit box, while others would use stocks, funds, foreign exchange, etc. for financial management. However, the concept and management of the reserve is also vague, and many do not know whether it is feasible to “offset the reserve”. It will be analysed from several angles。

The reserve is closed

First, we need to understand the concept of the reserve. The reserve refers to money that is not normally used. Typically, people draw a portion of their monthly income as a reserve. The role of the reserve is to respond to emergencies, such as sudden accidents, sudden loss of work, etc., without affecting the stability of life. Theoretically, if the reserve is closed once it has run out, it loses the meaning of the provision。

Second, the reserve is to be managed. If you put the reserve in a bank or in a securities market, then you need to manage it. For example, you need to manage bank cards and accounts, follow developments in the stock and fund markets and adjust in a timely manner. If you keep the reserve at home, you need to find a relatively safe place to keep it, and it should be checked regularly for security。

Then we need to think: Why do we have this idea? “Does the reserve still exist?” The idea is in fact that some people have misinterpreted the definition and role of the reserve or that they want to increase their financial assets. However, this approach to financial management is dangerous because, in the event of an emergency, there is no reserve to support it, which affects life stability。

In addition, if a person wishes to increase his or her assets through financial management, he or she should choose more secure means of financial management, such as purchasing robust funds, time deposits, etc. These are relatively safe ways of investing and can provide stable returns。

Finally, one important conclusion can be drawn: do not confuse the concepts of imprest and financial management. The reserve is a special fund whose role is to respond to emergencies. Financial management, on the other hand, is a special act, the aim of which is to increase the personal property. The two objectives are different and should therefore be managed differently。