No one knows how much money you need to earn in life, but 100% of people are not willing to spend their lives in struggle and fatigue. Building a balanced, prosperous, and happy life with wealth is what each of us pursues. So, this requires us to plan ahead!

After a family makes money, it should divide the money into four quadrants:

The first quadrant: life-saving money, accidental and serious illness protection, accounting for about 20% of family assets .

Insurance is the gatekeeper of our family wealth. A person's life cannot be smooth sailing, and risks are everywhere. Although the risk of serious illness and accidental injury is low in frequency and almost unforeseeable, when it occurs, it can cause devastating harm to a family. So we need to spend a small amount of money every year to prepare for these unforeseen risks.

The second quadrant: money to be spent, short-term consumption, accounting for about 10% of household assets.

Including food, clothing, housing, transportation, tuition fees, mortgage and car loans, emergency medical expenses for family members, etc. The characteristic of this part of the money is that it is a small amount and must be available at any time when needed. Generally, you need to prepare 6-12 months of household living expenses and place them in investment products with high security and strong liquidity. Such as Yu'e Bao, bank deposits, short-term financial products, etc.

The third quadrant: Preservation money, children’s education funds, and pension planning account for 40% of family assets.

This part of the money aims to outperform inflation, has a longer term, more stable returns, and medium risks. Such as real estate, gold, fund portfolios and other investment products.

The fourth quadrant: Money to make money accounts for 30% of household assets.

With the goal of pursuing high returns, there are large fluctuations and high risks. This part needs to be started after the defensive configuration of the first three quadrants is completed, and it cannot affect daily life. Investment tools include: stocks, funds, private equity, futures and foreign exchange, etc.

If a family consumes as fast as it makes money, no matter how much money you make, it will only be a poor life. And once the risk occurs, your family will be vulnerable, and you will be even less able to achieve a real class jump and accumulate real wealth.

A planned life is a blueprint, an unplanned life is a puzzle.

Why do you work so hard but fail in this life? Is it because you owe yourself a copy of the S&P Family Financial Quadrant Chart?