They put forward a standard of "Standard & Poor's family financial quadrant diagram", which means that after a family earns money, it should divide the money into these four quadrants:
1.？ Life-saving money accounts for about 20% of family assets. Critical illness insurance must be bought. If you spend a small amount of money on preparation every year, you can have a predictable sum of money to deal with emergencies. If you have100000 assets, the life-saving money should be around 2 million. The longer you buy insurance, the better, and it is best to keep it for life.
2. the money to be spent. It accounts for about 10% of family assets. Food, clothing, housing, tuition, mortgage, car loan, medical expenses and so on. The feature of this part of the money is that it can be taken at any time, and you can choose safe and mobile jobs, such as bank deposits, short-term bank wealth management products, Yu 'ebao and so on. For people with unstable income, set aside one year's money.
3. Currency accounts for about 40% of household assets. This part of the money is aimed at fighting inflation, with a longer term, more stable income and moderate risk. Real estate, gold and fund portfolios all fall into this category. If you insist on 15 through fund portfolio allocation or fixed investment, the annual compound interest will reach more than 10%, and it is no problem to beat inflation.
4. The money that generates money accounts for about 30% of family assets. This part of the money is to pursue high returns, high fluctuations and high risks. Although the first three items can ensure food and clothing, they cannot bring additional wealth. Therefore, venture capital is still necessary. Without affecting daily life, stocks, funds, private investment and futures foreign exchange can be considered.
Standard & Poor's gives all families a piece of advice: If you spend as fast as you earn, no matter how much money you earn, it is only a living method for the poor, and once the risk occurs, your family will be vulnerable and it is impossible to realize real wealth freedom.