"People don't manage money, and money doesn't find people." How do ordinary people manage their money in daily life? This may be a topic that many people care about. Because financial management largely determines the happiness index of daily life. Over the years, under the guidance of my nephew, I have skillfully read out the "four-word formula" of financial management, and family financial management has flourished, which can be described as "rolling in financial resources and ample food and clothing."
My two nephews both work in the financial field, and one of them is a famous local "financial planner". A few years ago, they gave me financial advice: follow four basic principles. These four basic principles, that is, my "four-word formula" for family financial management, have been followed and benefited a lot.
One of the formulas: "stable". I am a wage earner, and my income is relatively fixed, but my expenses tend to increase year by year. Therefore, financial management should be "safe", not blind or aggressive. In the process of financial management, I adopted the "100 rule" provided by my nephew-the proportion of a person who can invest in high-risk products is equal to 100 minus his age. Generally speaking, a 70-year-old should never invest more than 30% in risky assets. But if the financial management object is 30 years old, then 70% of the investment products can be risk assets. According to the "100 rule", I seldom come into contact with high-risk financial channels and projects such as stocks and foreign exchange over the years. Although many colleagues around me have been "bombed" by stock trading, I don't envy them. I think it is not easy for ordinary people to earn some money, so it is better to invest in financial management.
The second formula: "choice". The nephew said that there is no absolute difference between good and bad financial products, only the difference between suitable and unsuitable. According to their suggestion, I adopted a selective approach: part of the money was used to buy government bonds, which not only guaranteed the capital, but also assured that it was "no harm to buy". Part of the money is used for "universal insurance" with short insurance period and flexible withdrawal, such as "longevity bonus" and old-age insurance. This kind of insurance guarantees the annualized expected income, and I can rest assured that it can be described as "winning in stability". Part of the money is used to buy funds. The two funds I bought are bond funds with less risk-no matter how turbulent the fund market is, I can "have both offensive and defensive skills". After two years of trial, the effect is really good.
The third type: "Qiao". Nowadays, many people like to deposit their savings in the bank in the form of time deposits, thinking that they can sit back and relax. In fact, this practice also has disadvantages: because it is a time deposit, the funds are frozen, and sudden withdrawal during the deposit period will lose a lot of interest. At the suggestion of my nephews, I adopted the method of "saving time". I divided my savings of 10,000 yuan into three parts, and saved 10,000 yuan every other year, all of which were used as three-year time deposits. In this way, I have a deposit of 10 thousand yuan due every year. If I need it urgently, I will use it. If not, it can be kept for another three years. The interest I enjoy is still the expected annualized interest rate for a three-year fixed deposit. I not only got the guarantee of expected annualized income, but also "held back" myself and used "dead money" flexibly.
The fourth formula: "live". In daily life, minor illnesses are common. If you are ill, you need money. Therefore, the deposits in your hand must be "alive" so that you can "use what you can and spend what you can". I used to like long-term deposits, thinking that the longer the deposit period, the higher the interest, but once I met urgent money, I was cheated-I took it, the interest was gone, and I didn't take it, so I waited for urgent money. Later, according to my nephew's suggestion, I set the storage period as 3 to 12 months for urgent use in daily life. In addition, every time I deposit money in the bank, I must first find out whether the deposit can be used as a pledge loan, which is also conducive to urgent need of money.
After several years of financial management practice, I admire the "four-word formula for financial management". Looking at the happy life of the whole family, I feel more and more that family financial management is really a knowledge that cannot be underestimated.