"Four sums of money" is actually a kind of financial thinking. For example, life-saving money cannot be used for venture capital, and pensions should not only exist in bank needs. The "Four Money" financial thinking divides money into "living money", "stable money", "long money" and "insurance protection" according to different scenarios and different people with different purposes, and then invests in appropriate financial products.
The first category is "living money", which is used for daily expenses, and security and liquidity are the primary considerations; It is the money you need at any time, such as lunch, milk tea and subway. For this money, the most important thing is good liquidity and low risk. Mi Ying Fund suggests using cash management tools such as Monetary Fund to manage these "living money".
The second category is "stable money", which is expected to be idle for six months to three years, and can withstand fluctuations but need to obtain certain income; It is money that will not be used at any time, but for specific purposes, such as paying back the credit card next month and traveling at the end of the year. The core logic of managing this money is to obtain higher income than "living money" management without losing money as much as possible. Brokerage financing, bank financing and "fixed income+"products are more suitable for "stable money" investment.
The third category is "long money", which can be invested for more than three years and is the money left for the future; For example, children's college tuition and their own pension money. This money can be used as a long-term investment, which is suitable for varieties with large fluctuations in Public Offering of Fund, and can achieve the purpose of using time to stabilize market fluctuations and obtain income; Long-term investment can not only reduce the overall risk, but also help us pursue higher returns. Mi Ying Fund advises investors to pursue their "small goals" by investing in index funds.
The fourth category is "insurance protection", which is used to avoid possible diseases and unexpected risks in the future. This is a sum of money used to buy insurance and a "safety mat" for investors. If you make insurance arrangements and weave your own "safety net" when there are natural and man-made disasters and serious unemployment, your basic life will not be affected by a major financial blow. However, insurance is a professional financial product, so we must consult professionals to avoid "stepping on the pit".