Everyone's expenditure can basically be summarized from five aspects: food, clothing, housing and transportation. At the same time, it can be divided into fixed expenses (necessary expenses such as eating, drinking, traveling and mortgage) and flexible expenses (eating out, buying clothes, watching movies, traveling, etc.). ).
For office workers, financial management should be based on all income MINUS fixed expenses, and the remaining disposable part after leaving enough necessary flexible expenses is the current plan. I usually allocate these funds for personal finance from the following four aspects.
1, live money management, that is, money that may be used at any time in daily life. This part of the money is mainly used to meet daily expenses or emergencies, and can also be used to increase long-term investment positions when appropriate. This part of the money mainly considers the liquidity of funds. At present, the best allocation direction is the money fund. The most common money fund is Yu 'ebao, but at present, the annualized rate of return of Yu 'ebao is only about 2. 1%. My relatively stable and high-yield money funds are Li Tiantian currency B and E Fund's cash-increasing currency B, with an annualized income of about 2.5%, convenient T+0 access, and a long-term rate of return among the major money funds.
2. Steady investment, that is, part of the funds that pursue steady income. The investment period of this part of funds can be six months to two years, because the investment period is longer than living money management, which means that you can get higher returns on the basis of taking lower risks. The main investment direction is various wealth management products or bond funds, and the current annualized income can be around 5%. China Merchants Bank, Tian Tian Fund, JD Finance and other platforms can buy some good wealth management products, which are basically similar in nature. They all invest in various credit bonds in the later stage of the brokerage asset management plan, and the risks are relatively controllable. Later, with the net management of funds and various asset management plans and the occurrence of superimposed credit bond risk events, these wealth management products actually face certain loss risks, but the overall risk and volatility are much smaller than those of stocks.
3. Long-term investment means pursuing long-term appreciation of assets. It is suggested that the investment period of this part of funds is expected to be held for at least 3 years. The investment period is longer and the risk is greater. You can exchange risk for income, and choose some high-yield partial stock products, such as index funds and better actively managed funds. Personally, I will buy some fund products through platforms such as Tian Tian Fund and Alipay, which is also the main way for us to greatly improve the wealth management income.
4, insurance protection, is to buy all kinds of commercial insurance money. There are always unexpected risks in life, and the COVID-19 epidemic in 2020 has given us a deep understanding of risks. It is very necessary to allocate some money for insurance and lay a safety mat for yourself and your family. The essence of insurance is to use a small amount of money to prevent future accidents that may be unbearable. Therefore, it is not recommended that you allocate savings insurance as investment, but choose consumer insurance with relatively low price and give necessary protection at critical moments. At present, the four mainstream commercial insurances are critical illness insurance, life insurance, medical insurance and accident insurance. Better companies will provide supplementary commercial insurance for employees, and some excellent companies will provide additional commercial insurance for employees and their immediate family members. Personally, I strongly suggest that you sort out what insurance is available under your name, and suggest that you at least configure a critical illness insurance for yourself to ensure that you don't just rely on "Didi Finance" in extreme cases.
Everyone's life is inseparable from dealing with money. Money is not everything, but you can't do anything without money. In fact, the premise of financial management is that you have spare money to operate, so the most important thing is never how to spend money, but how to make money. If you can put more than 80% of your energy into how to work hard and earn more money, and then put 10% of your energy into sorting out the funds on hand and making good asset allocation, I believe there is much to be done in the future.