Even if you can't know your family exactly, how can you make financial planning for yourself? How do you know if you can invest so much money without exact real estate information?
There is only one way to solve these problems, that is, to make a family balance sheet and a statement of income and expenditure, do these two jobs well every once in a while, control your family property at any time, know your income and expenditure, control unreasonable consumption, reduce unnecessary expenses and save some money for financial management.
When it comes to financial statements, most people will think of the work of enterprise accounting. Those are professional statements made by accountants, which are very complicated. Some people think that only companies have these two things, but how can individuals have them? Actually, it's not. Let me give you an example. How many bank accounts do you have? A friend once said that someone has opened more than 10 accounts. In fact, each account doesn't have much money, and he doesn't care, but in fact, some accounts may contain 1000 yuan. Maybe he just put the money in when he opened an account, and then he didn't care.
Not surprisingly, if you have 10 accounts, one is 1000 and the other is 500, which may add up to 12000. You should know how much your assets are. How many credit cards are there? How much do you owe? I have a friend who says he pays the minimum monthly payment, but he uses the rest of the money for savings. I wonder why that friend is like this. Don't underestimate these credit cards, in fact, you bear a lot of expenses in them, tens of dollars a month and hundreds of dollars a year.
The advantage of financial statements is that you can see financial expenditure, income, etc. At a glance, the organization is clear. Therefore, we should also learn to apply report production to individuals or families.
There can also be many family financial statements, and the most basic ones are balance sheets and income and expenditure statements. To manage money, the most basic thing is to learn to read statements and understand the impact of each investment on the family. The second is to make balance sheets and income and expenditure statements, so that your life is simple and clear, and financial management is more based.
Generally speaking, on the balance sheet, how many assets a family or individual has, what assets they are, how many liabilities they have, what liabilities they are, how much their net assets are, and what their composition is, are clearly reflected. The balance sheet can help you manage your income and expenditure well, record your daily income and expenditure, regularly check whether you have unnecessary expenditure, and plan your future income and expenditure in advance.
Balance Sheet "Family Monthly Balance Sheet" is a report that reflects the basic financial situation of the family before the deadline. We can know: 1. Composition of family assets, the relationship between creditor's rights and debts; 2. The family's financial strength and development trend, changes in solvency and asset structure; 3. The main data needed for the diagnosis of family assets; 4. Total net assets of the family.
The balance sheet describes the financial situation of the enterprise at the time of publication, just like we press the shutter with a camera in a high-speed vehicle, except that the "vehicle" here is the capital flow. What we get is a static picture, which only describes the situation at that time, that is, the information has timeliness. If a person or a family doesn't even have a vague idea of how much their property is, how can he manage money? Don't think what I said is serious. In fact, many people don't know how much their property is. So we should study the balance sheet.
Generally speaking, the balance sheet has the following functions:
1. reflects assets and their distribution.
The balance sheet can reflect the assets owned by families or individuals at a specific time and their distribution information. It shows the total assets owned by a family or individual at a specific time and what these assets are. For example, how many current assets, how many fixed assets, how many long-term investments, how many intangible assets and so on.
2. Indicate the debts undertaken and the repayment time.
The balance sheet can show the debts undertaken by the family at a specific time, the repayment time and the repayment object. If it is a current liability, it must be repaid within 1 year; If it is a long-term debt, the repayment period can exceed 1 year. Therefore, from the balance sheet, we can clearly know who owes how much money at a specific time and when to pay it back.
3. Reflect the net assets and their reasons
The balance sheet can reflect the net assets owned by the family at a specific time and its causes. Net assets are actually a kind of equity, or another name for owners' equity. At some point, assets should be equal to liabilities plus equity. Therefore, net assets are assets minus liabilities.
It should be noted that in the balance sheet of an enterprise, there is such a rule: assets can be said to be equal to liabilities plus shareholders' equity, but they can never be said to be equal to shareholders' equity plus liabilities, which are essentially different. Because the accounting standards particularly emphasize putting others first, that is to say, the assets of an enterprise should be used to repay debts first, and the rest, no matter how much, should be owned by investors. If we talk about owner's rights and interests first, we will put ourselves in front of others, which is not allowed by accounting rules.
It should also be included in the family balance sheet.
Contents of the balance sheet:
The balance sheet includes household assets and liabilities.
1. Family assets:
Regarding the classification and content of family assets, there may be many classification methods. For example, according to the liquidity of property: fixed assets, current assets. Fixed assets refer to physical assets such as houses, cars and articles; Current assets refer to cash, deposits, securities, funds and investment income. The so-called liquidity refers to the ability to respond to emergency payment or investment opportunities in time, or simply the ability to realize cash. Among them, fixed assets can be divided into investment fixed assets and consumption fixed assets. Such as real estate investment, gold jewelry and other physical objects that can generate income; Consumer fixed assets are necessary daily necessities for family life. Their main goal is to provide for your family members to use, generally do not generate income (only depreciation), such as self-occupied houses, cars, clothes, computers and so on.
Family assets can also be classified by attributes: financial assets (financial assets), physical assets, intangible assets and so on. Financial assets include current assets and investment assets, while physical assets are houses, cars, furniture, computers and collectibles. Intangible assets are intellectual property rights such as patents, trademarks and copyrights.
According to the classification method in the financial management software of Jiacaitong, the assets are classified as follows:
Cash and current deposits (cash, current passbook, credit card, personal check, etc.). )
Time deposit (local and foreign currency certificate of deposit)
Investment assets (stocks, funds, foreign exchange, bonds, real estate, other investments)
Physical assets (household goods, houses, cars)
Creditor's rights assets (creditor's rights, trusts, entrusted loans, etc.). )
Insurance assets (basic insurance and other commercial insurance in social security)
2. Family debt
Family debt refers to the family's borrowing funds, including all debts owed by all family members to non-family members, bank loans, notes payable, etc.
Household liabilities are divided into short-term liabilities (current liabilities) and long-term liabilities according to the duration. Generally, there are different ways to distinguish how long a standard is. Liabilities due within one month can be considered as short-term liabilities, while liabilities to be repaid every month for more than one month or years are considered as long-term liabilities, such as monthly mortgage repayment. Another way is to limit it to one year. Liabilities due within one year are short-term liabilities, and liabilities exceeding one year are long-term liabilities.
The specific distinction between current liabilities and long-term liabilities can actually be determined according to your own financial cycle (payment cycle), such as weekly, monthly, bimonthly, quarterly, annual and other different cycles.
Household liabilities can also be classified according to the types of liabilities. Family financial management software is classified as follows:
-Loans (housing loans, car loans, education loans, consumer loans and other bank loans)
-Debt (debt, accounts payable)
-Taxation (personal income tax, inheritance tax, business tax, etc.). ).
Accounts payable (short-term bills payable, such as rent payable, utilities payable, interest payable, etc.). )
The following is the format of the balance sheet: monthly statement of household income and expenditure, monthly assets (yuan), liabilities and net assets (yuan), financial assets, current assets, investment assets, annuity insurance assets, physical assets, cash and demand deposits, time deposits, loans, other bond funds, stocks, commodities, futures, financial futures, foreign exchange dividends, cash value of universal and linked insurance, real estate investment, and so on. Health insurance, cash value, other self-occupied houses, automobiles, high household appliances, high-value electrical appliances, equipment, high-value clothes, jewelry, gold, jewelry, collectibles, other current liabilities, short-term arrears, credit card overdraft, other long-term loans, housing loans, auto loans, consumer loans, student loans, investment loans, private loans, other liabilities, total net assets, total net assets, total net assets,
(1) Keep financial records and establish your own balance sheet: How much is the debt? What is the repayment ability and speed? (2) Calculate the credit repayment ratio = monthly repayment amount ÷ monthly income When most of your monthly income is used for repayment, your debt has already turned red.
(3) Record the monthly repayment date. Pay back the money on time, otherwise your credit history will be affected and even a penalty interest will be incurred.
(4) avoid paying only the minimum repayment amount, and the accumulated debt by installment is amazing; (5) Never pay off debts with debts, and rob Peter to pay Paul.
(6) Plan to pay off debts first, and then plan to spend. Every month, a part of income is set aside to pay off debts, and the rest is used as expenses, not the other way around.
3. Valuation of assets and liabilities
Evaluating the value is a very controversial matter. But as a family, you can take a relatively simple approach, because you won't sell most assets, so only you can determine their value.
Value evaluation must be based on two principles. One is the reference market value. The so-called market value is the price that others are willing to pay for an asset in a fair, relaxed and calm transaction. The second is that the evaluation value must be determined at a certain point in time. At the end of last month, at the end of last year, or any day, because the value of assets will change with time.
The value of a house is relatively difficult to assess. As a family's biggest asset, you can only refer to the transfer price of similar houses in the local area. There are more difficult to estimate, such as jewelry, antiques, calligraphy and painting, because the market value of these assets is more flexible. If you are not an expert in this field, you may need to help others.
The loan value in liabilities is the remaining debt amount as of the appraisal time. If it is a mortgage loan, the loan will be repaid in installments for a long time, such as 10 years or more, and the loan interest may account for a fairly high proportion. Do these huge benefits count as liabilities? Generally, it is not necessary, because it is a liability (interest) that will occur in the future and does not need to be calculated in advance.
The purpose of making a good balance sheet is to make future decisions, but sometimes the dynamic changes of human resources must be taken into account when making long-term investments.
When a craftsman 15 years old starts to learn art, his income will increase with the enhancement of his craft in a few years, but it is not easy for him to make a breakthrough in a few years. If you spend the same amount of time in college, you may not have your own income until you are 25 years old. There is a big gap between the two in this decade, but after that, the income of the latter will be even greater, and in a few years, the income will exceed that of the former.
Therefore, when making decisions, we should always pay attention to the human capital of individuals/families. For example, a borrower can give a young professional with almost no tangible assets a much larger credit line than a construction worker with the same net assets, because the intangible human capital value provides some form of guarantee.