The proportion of reasonable allocation of family assets according to the 4321 Law is that 40% of the family income should be used for housing and other investments; 30% should be used for family living expenses; 20% should be used for bank deposits to prepare for emergencies. ; 10% goes to insurance.
The Law of 72 is a method of investment and financial management without getting back the interest. The time it takes for the principal to double is equal to 72 divided by the annual rate of return. For example, if you have a deposit of 100,000 yuan in a bank and the annual interest rate is 2%, how many years will it take for the deposit to appreciate to 200,000 yuan? Just divide 72 by 2 to get 36, and you can calculate that it will take 36 years for investment bank deposits to double.
The 80 Rule: The reasonable proportion of stocks to total assets is equal to 80 minus age plus a percent sign (%). For example, stocks can account for 50% of total assets at the age of 30, which means that at the age of 30, 50% of the assets can be invested in stocks, and the risk is acceptable at this age, while at the age of 50, investing in stocks can account for 30%. It is appropriate.
The Double 10 Law of Family Insurance The appropriate amount for family insurance should be 10 times the family’s annual income, and the appropriate proportion of premium expenditure should be 10% of the family’s annual income.
According to the Three-One Mortgage Law, the monthly mortgage repayment amount should not exceed one-third of the family's total monthly income.
Six mottos for family financial management
Health investment is the best first choice investment project. Life is the foundation of life, and health is the basic guarantee of life and the prerequisite for pursuing life ideals. The greatest wealth. Only by winning health can you win life, and by winning life can you win time. Time is money.
The best advisor for investment and financial management is yourself. Don’t blindly follow others and don’t be superstitious about experts. Because the analysis of experts may not always be correct, you must rely on your own ears to hear the correct news, your own eyes to see the actual situation, and your own brain to analyze and judge to find the best investment plan and approach.
Investment must have a strategic vision. Short-term investment must not be short-sighted, and long-term investment must also have a dialectical development vision. Today's sunrise industries may become sunset industries tomorrow. Choose good investments, and small money will make big money. On the contrary, it may be like "a meat bun beats a dog, and there is no return."
Money lies in movement. The essence of money lies in flow. Money cannot sleep. Today's economic and social development is changing with each passing day, and funds can only maintain and increase their value through investment and circulation. Investment mistakes are losses, and stagnant funds are losses.
There is no "victorious general" in investment. The market economy is changing rapidly, and investment is also subject to unforeseen circumstances. If you want to master the secrets of investing, you will inevitably need to pay some tuition. Money is something external to the body. When you find that you have made a mistake in your decision, you must be willing to "cut the flesh". Sometimes giving up temporarily is for more gains.
Money itself is not "pure or dirty". In modern economic and social life, money is not everything, but nothing is impossible without money. There is no limit to the satisfaction of money, but life is limited for everyone. Therefore, making money should be moderate and satisfying.
Seven Principles of Family Finance
The principle of ensuring payables. The volatile assets of a general family include cash, bank deposits, gold, and stocks that are relatively easy to liquidate. The total amount of these funds should be adjusted to be sufficient to cover the family's various expenses for 4 to 6 months of life. In this way, when families face any income crisis, they will still have relatively sufficient funds to face difficulties.
The principle of risk tolerance is "life risk tolerance". It refers to the amount of money that can be maintained in the family's economic life if a serious accident (accident) occurs to the main income earner in the family, such as injury, illness, layoff, etc. Length of time. The best way to solve this problem is personal insurance, which seeks complete family protection through risk sharing across society.
The principle of knowing oneself and knowing the enemy. The so-called "know oneself" means that financial managers should have a comprehensive understanding of their family's financial situation, including assets and debts, annual income, expenses and financial management goals, etc. “Knowing the enemy” refers to understanding the risk and return levels of various financial products through banks, securities companies, media, etc. After knowing yourself and your enemy, choose the type of financial management that suits you.
Being familiar with strategic principles and financial management strategies is a necessary prerequisite for preserving and increasing the value of a family’s existing assets. Financial management strategies are the lifeblood of family financial management. In order to achieve the goal of family financial management from scratch to wealth, from wealth to wealth, and from wealth to wealth, one must be familiar with and use financial management strategies such as savings, investment and asset management to achieve the best allocation of family assets.
Understand Tool Principles Financial management tools in family life are by no means just savings and buying and selling stocks. We can divide the financial investment tools suitable for family finance into the following three categories: the most conservative bank savings deposits; conservative and steadily growing "fixed income" investment tools, including bonds, funds, insurance, etc.; high-return but also Relatively risky investment tools, including futures, stocks, collections, etc.
Principle of Future Needs One of the clear goals of family financial management is to pre-plan for future family financial needs. These future needs generally include three categories: children's education expenses, house purchase expenses, and pension expenses.
Principle of Personality Differences People with different incomes, age groups and occupations have different risk resistance capabilities and different family property conditions. It is particularly important to choose financial management plans and financial tools that suit them.
Top Ten Tips for Family Finance
1. In the initial stage of building family assets, you should choose an investment institution that is basically risk-free. It is best to accumulate funds through bank savings. .
2. Buying a house is an investment action that builds lifetime assets and should be carried out with caution after careful consideration.
3. Before taking any action to acquire real estate, you should consider your own ability to pay funds and payment methods.
4. Create a list of family assets, which will allow you to keep abreast of changes in family assets and changes in relevant regulations.
5. Try to diversify your family assets. In the structure of household assets, it is necessary to ensure that fixed assets, monetary assets and financial assets are generally in a reasonable and coordinated state.
6. Preserve and increase the value of your home assets. Every asset in the family should be maintained and increased in value through various channels according to its determined purpose.
7. Make your family assets "alive". If you choose medium and long-term investment for your home assets, it will be difficult to consider this. This can only be achieved by using short-term investment methods.
8. You should be concerned about the implementation and changes of the tax system. If necessary, you should change your family savings strategy and act decisively. Timely adjustment of investment direction and emphasis on investment safety are conducive to family financial management and risk avoidance.
9. Always prepare for your retirement. Before retirement, you'd better use some other investment methods to make up for the lack of social security measures to ensure a comfortable retirement.
10. Protect your family effectively. In terms of disease insurance, injury insurance, life insurance, property insurance, husband and wife financial management system, etc., some considerations should be made and overall arrangements should be made.