The root of financial management is to protect yourself first. You are the most valuable asset, and it is not too much to protect yourself.

Everyone should buy social security, but social security only provides the most basic protection, and in recent years, news about the deficit of social security funds is common, so it is far from enough to rely on social security alone. I suggest that it is safer to allocate additional commercial insurance.

By the way, to buy commercial insurance, I suggest you choose consumer insurance instead of those with financial management functions.

Insurance with financial management function has low investment income and weak protection function, which is actually very tasteless.

Don't think that the money spent on consumer insurance is a waste. The core of buying insurance is to use leverage to transfer your own risks.

Take my cousin who came out to work in the 1990s as an example. Her salary is not high and her coverage is limited. She bought Fosun Lekang Life C critical illness insurance (click the original link at the bottom to see the specific introduction), with a coverage of 500,000 yuan, which can guarantee her 70 years old, but it only costs more than 200 yuan per month on average.

If she doesn't have this guarantee, in case of any misfortune, which ordinary family can pay so much money for treatment at once?

Therefore, everyone should remember that before financial management, we should do a good job in adequate protection, medical insurance, critical illness insurance, life insurance, accident insurance and so on. Should be provided as required. In short, this part of the money should not be saved.

02. Liquidity of assets

In a safe situation, we should consider how to manage the money spent on daily food, clothing, housing and transportation.

The characteristic of money spent on daily food, clothing, housing and transportation is that it flows quickly, especially when the money spent every day is not warm in your pocket.

For the money to be spent every day, I think the best choice at present is to deposit it in Yu 'ebao or WeChat Coin Pass.

At present, almost all domestic businesses support these two products. Usually, it is convenient for us to pay with them. On the other hand, they are connected with the money fund, and we can also make small change generate income.

Wechat Bitong and Yu 'ebao are now connected to multiple money funds. My annualized rate of return is as follows:

Some money is not spent every day, but it is very mobile in the short term, such as monthly rent, credit card money to be paid back every month and so on.

In addition to investing in monetary funds, this part of the money can also choose innovative deposit products of popular banks.

The innovative deposit products of banks mainly take a fixed deposit as the underlying asset, and the bank deposits within 500,000 yuan are protected by the state, so the risk coefficient is very low.

Moreover, because early withdrawal transfers the deposit income right to a third party, it can achieve good liquidity and annualized income is not low.