Personal net assets = personal total assets-personal total liabilities

Total personal assets = current assets+investment assets+available assets.

Total personal liabilities = short-term liabilities+long-term liabilities

Some nouns mentioned in the above formula are unknown, so? It doesn't matter, then let's focus on literacy:

Current assets: refers to cash, current savings, short-term bills and other currencies or bills that can be used and cashed in time.

Investment assets: refers to long-term savings, insurance money, stocks, bonds, funds, futures and other investment currencies or bills for the purpose of maintaining and increasing value.

Available assets: refers to houses, furniture, vehicles, books, clothes, food and other usable items.

Short-term debt: refers to the debt that should be repaid within one year.

Long-term debt: refers to the debt repaid over one year.

Personal asset-liability ratio: personal asset-liability ratio = total personal liabilities ÷ total personal assets * 100%.

Second, pay attention to personal debt.

Liabilities can be divided into long-term liabilities and short-term liabilities. Common short-term liabilities include: credit card fees, installment shopping, personal direct temporary loans, etc. Long-term liabilities are common: the bank buys a car in mortgage to buy a house, the cost of raising children, the cost of supporting the elderly and so on.

Personal liabilities can be divided into benign liabilities and malignant liabilities in nature. What is benign debt? There are two criteria for benign liabilities:

Loans for production and business activities;

The cost of debt must be lower than the operating profit.

For example, if you open a shop, you need a turnover of 20,000 yuan urgently, because this money is lent to make money, which meets the first standard of good debt. But if the interest on this debt is 3,000 yuan, and the money you earn from this debt is only 2,000 yuan, then this does not meet the second standard, so it is not a benign debt. But it's better than borrow money to spend. If the profit is 5,000 yuan and the interest is 3,000 yuan, then this satisfies the two conditions of a benign debt, and you can borrow this foreign debt.

What is vicious debt?

For example, if you overdraw your credit card to play, eat, drink and shop, this card debt is a bad debt. Of course, the amount of debt is within the range you can repay, and it is still sloppy. If you exceed your repayment ability, you will be bitten by the card issuer, and the high penalty interest will make you lose more than you gain. Continue to brush so much, congratulations, you will become the food and clothing parents of the issuing bank, and you will be a pawn. Those card slaves who finally burned charcoal all pushed themselves to a dead end by "raising cards with cards". There are also gambling loans, folk usury and so on.