With the rise of the internet, the financial industry has also quickly embraced it. Now, on internet financial management platforms, a variety of financial products are vying for attention, with high-interest and high-expected-return products catching your eye. For ordinary people, how to choose several good financial products based on their own needs, to reduce risks while obtaining stable returns, and to steadily improve their standard of living, is very crucial.

For ordinary people, internet financial management can be quite dazzling. In fact, no matter how attractive the internet financial products are described, for ordinary people, as long as they grasp the following points, they can minimize risks and obtain stable returns.

1. Firmly avoid high-interest products

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There are many high-interest financial products on internet financial platforms, such as those with an interest rate higher than 6%. As an ordinary person, you should never touch these financial products, as they are very risky. If the investment fails to be redeemed, the principal may be completely lost.

Many products on internet financial platforms are P2P, and there are also many products with interest rates as high as over 10%, which sound very tempting. Moreover, many platforms have guarantee companies that provide loan guarantees, and many promise that if the loan principal and interest are not redeemed, the guarantee company will compensate. It seems that the risk is not very high, but in reality, it often ends up with many P2P companies going out of business.

In recent years, many P2P companies have gone out of business, and the recent case of Tangdou Network is a typical example. On March 28, 2019, the actual controllers of Tangdou Network, Tang and Zhang, have turned themselves in. It was found that the total balance of loans on Tangdou Network was 14.5 billion yuan, and these loans may be completely lost.

2. Spare change can be invested in "baby" products

As an ordinary person, after receiving your salary, you must be very frugal. It is best to plan your monthly consumption expenses, and then the remaining money can be saved. This money can be used to purchase "baby" products on internet financial management platforms.Currently, there are approximately three commonly seen "baby" financial products on internet finance platforms, such as Yu'e Bao in Alipay, the Zero Money Pass in WeChat, and the Small Treasury financial management in JD Finance. These three baby products have very low risk, excellent liquidity, can be used for consumption at any time, and can also generate a certain amount of interest if not used, which feels quite cost-effective.

If you save some pocket money, you can deposit it into Yu'e Bao, WeChat Zero Money Pass, or JD Finance Small Treasury financial management. These products are very convenient for deposits and withdrawals. Currently, the interest rate for Yu'e Bao is 2.4%, which is relatively low, but even small amounts of change can be deposited. The interest rate for WeChat Zero Money Pass is 2.7%, so if you have spare change in WeChat, you can transfer it to the Zero Money Pass to earn interest. The current JD Finance Small Treasury financial product does not charge a fee for withdrawals, and the interest rate is relatively high, with a recent 7-day annualized return rate of 2.879%.

III. Large amounts can be invested in bank smart deposit products

There is also a category of smart deposit products on internet finance platforms, which can be said to offer very high interest rates, and they are also ordinary deposit products that can be protected by the national deposit insurance system, with a safety guarantee for amounts up to 500,000 yuan. Ordinary people can appropriately purchase some of these deposit products to obtain better returns.

For example, in the bank deposit products on the JD Finance platform, the interest rate for the 5-year term deposit of Yi Lian Bank is as high as 6%, but you must deposit for 5 years to achieve such a high interest rate. For deposits of less than 3 years, the interest rate for this product is 2.84%. Only by depositing for more than 3 years can the interest rate reach above 5.7%. Therefore, it is not cost-effective to withdraw this product in advance, and everyone must consider it carefully when purchasing this product, and not just be attracted by the high interest rate of 6%.

As ordinary people, it is still recommended to purchase bank deposit products with a term of about one year, such as the Blue Baby smart bank product from Blue Ocean Bank, with a deposit term of 360 days, an early withdrawal interest rate of 0.35%, and a maturity interest rate of 4.8%. Such bank deposit interest rates are relatively high, with slightly lower liquidity, and lower interest rates for early withdrawal.

IV. Investment in fund products requires special caution

There are many fund products on internet finance platforms. Among the fund products, bond funds have a slightly lower risk, while stock funds are very risky and can easily suffer significant losses if not careful. These funds are not guaranteed principal. Therefore, the risks can be said to be very high.Sometimes it's not a lack of trust in professionals for fund investments, but rather the process of fund investment where fund managers invest other people's money and earn fees regardless of the investment's success or failure. Under such circumstances, who can guarantee that professional fund managers will definitely make a profit? No one will give you a promise, nor will they ensure that the fund can achieve a 100% profit.

Therefore, as ordinary people, when investing in fund products, it is essential to be particularly cautious. Try to invest prudently, and even if you are just testing the waters, the amount should not be too large to avoid risks as much as possible.

V. Conclusion

Internet financial management, in essence, is still about financial products being sold on financial management platforms. The risks of financial products do not change with the change in transaction models. With a variety of internet financial management products, it is crucial for ordinary people to pay special attention to risk prevention and to seriously study the advantages and disadvantages of each financial product.

For ordinary people managing their finances, it is best to purchase fixed-income financial products, such as baby products or smart deposit products. Only in this way can risks be reduced, stable returns be obtained, and one's life can be improved to a better extent.