consider financial calculation

how much deposit is needed to avoid anxiety, which is related to everyone's conditions.

first of all, how much is your daily expenses, how much is your consumer demand, and how much is your stability guarantee. Only after the calculation can we know how much the funding gap is.

Secondly, how quickly the currency depreciates and how long you need to live. Expenses

The cost of living varies from city to city, the consumption standards of various classes are different, and there are differences in the concept of age groups, so it will not be a unified standard.

generally speaking, a 5-year-old family should be a family of three, but the elderly are still there, and the children are taking the college entrance examination or just going to college.

the average family's annual consumption is between 11w and 2w, and the median value is 15w.

Because the question is about not being anxious, I think people may not be so careful when they are not anxious, so they should increase the calculation. Suppose the increase coefficient is 1.2, then 15w*1.2=18w.

with the passage of time, the daily annual consumption may decrease, but the expenses of various events and accidents will increase. After the age of 7, the consumption of medical care and health will rise. Therefore, on the whole, this rough calculation standard of 18w should be enough, and it can be reduced by -1.5% per year. Unexpected expenses

Some unexpected expenses in life should be estimated, and enough should be left when conditions permit. For example, if we live longer today, we may encounter cancer, because the physical examination in the future is better than in the past, and it is generally found earlier, so it is treatable. But the cost is still not small. According to today's cost estimate, the cost of a serious illness is about 2w, and two people are 4w.

At least one major event will happen in the future, such as a down payment for a child to buy a house, or a lawyer for a lawsuit, etc. Let's still use 2w as the calculation.

in this way, a total of 6w contingency fund is required. In fact, if the conditions are good, that is, the standard of not being anxious, I think we should consider at least 1w contingency fund.

there are more and more guarantees, but on the whole, they are not enough. For us, the most important guarantee is:

1. Pension.

Most 5-year-olds will not receive enough pensions in the future. The couple will receive 12w a year, which is equivalent to two-thirds of 18w.

2, medical insurance.

for most people aged 5, the future medical insurance coverage is not enough. At present, it is about 5%, and it may increase to 6%~7% in the future, and it will not be higher. We still consider

3 according to 2/3. Housing

Housing, which is 5 years old, should be enough for most families, and some even have multiple suites. The expenses on this are mainly property tax, water and electricity maintenance, furniture renewal and redecoration. Suppose that after the children get married, the housing will be big, and they may also need to pay property tax. According to the couple, they need to spend 1.5w on housing every year.

Let's see if you have no worries about these three aspects. If you do, you may increase your expenses in your daily consumption. Currency devaluation and people's life span

Currency devaluation is a common practice in the world, and it is about -2% in stable countries. I think it can be calculated as -4%. China's depreciation was slightly higher in the past, and it will decline in the future, which is close to the world average, so it is a little optimistic, and I think it should be calculated according to -5.5%.

Today's purchasing power of 1w will need 1 * 15.5% in 1 years. People's life expectancy is getting longer and longer. What is the life expectancy of China people? The country announced the age of 75, but this is the result of the last census, and it includes people who died in car accidents. Therefore, when insurance companies calculate long-term life insurance, they generally use the age of 85 to calculate. But there are many people around me, such as my community, who are 9 years old. Our own financial planning, I think, should be considered as 9 years old? Therefore, for a 5-year-old, there are still 4 years to celebrate his birthday. Means of value preservation

If you have 1w cash, how can you save it until you are 9 years old and not depreciate? That is, the annual income should exceed the depreciation rate of 5.5%. Degree. Buying a house in the past far exceeded the depreciation, but buying a house in the future is no good. At present, the stock market is a better channel, but the stock market is very risky. In the long run, the index ETF has risen by more than 5% annually, and it can reach 2% if it follows the band of bulls and bears properly, which can generally be calculated by 12%.

let's not discuss it in detail. let's assume that we have found a channel with low risk and annualized income exceeding the rate of currency depreciation. The annualized income is about 7%, which is equivalent to a combination of national debt, bank wealth management, 3 index ETF and bond fund, and the risk is not too great. After calculating these parameters

with excel, it is found that if the pre-retirement wage income is 2w/ year and the post-retirement pension is 12w/ year, there are now 254w deposits, and with the contingency reserve of 6w, a total of 314w is needed. This amount is to ensure a well-off standard of living for ordinary wage earners, and the couple will spend the rest of their lives peacefully after retirement.

However, I have calculated the requirements of financial freedom in the Q&A before, and they all need more than 1w W. In fact, when I retire, I need 2, W to taste financial freedom.