Whether you are a saver who insists on depositing money in the bank every month regardless of rain or shine, or an investor who has targeted various high-risk and high-yield investment products, or a moonlighter who is drunk now and now, as the "base camp" for your own development.

——The financial situation of the family is an issue that every adult cannot avoid.

Maybe you only have a vague impression of your family's finances at this moment, but the next three numbers will soon give you an intuitive understanding.

When it comes to the emergency capabilities of assets, the first thing we think of is red cash.

As the most widely recognized general equivalent, holding a portion of cash always makes us feel more at ease.

But in addition to cash, there are also some assets that can be converted into cash within a short period of time, called cash equivalents, such as demand deposits and money market funds.

These two categories are collectively called current assets, or monetary assets.

And this number that measures emergency capabilities is the monthly expenditure coverage ratio, which is equal to current assets divided by total monthly living expenses, that is: Monthly expenditure coverage ratio = current assets? ÷ total monthly expenditures.

This means that if the family's regular income is lost, how long can the current liquid assets sustain the family.

It is necessary to emphasize liquidity here.

It refers to the ability to liquidate assets without suffering a loss in value or with negligible losses.

If you have a famous painting worth 20,000 yuan hidden in your home, and you sell it for 13,000 yuan in order to liquidate it within a week, your asset will suddenly be reduced by 7,000 yuan - this painting cannot be regarded as a liquid asset.

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The price of liquidity is the loss of yield, and holding liquid assets means we cannot invest them in high-yield products.

You can't have your cake and eat it too. On the premise of meeting emergency needs, it is more cost-effective to use assets for investment.

Generally speaking, controlling the monthly expenditure coverage ratio between 4 and 6 can meet emergency needs.

After our income flows into the bank card as cash flow, there are only two situations: "stay" or "flow" out.

Dividing the amount of your monthly income that goes toward saving and investing by the amount of your monthly income that goes toward spending gives you a ratio called your savings ratio .

That is: Savings ratio = total amount of income used for saving and investment?÷ total amount of income used for expenditure. If this number is near 1, it means that the savings and spending are equally equal; if it is greater than 1, then congratulations, you

The wealth of the family can be accumulated faster; if it is less than 1 (or even close to 0), then it is necessary to plan the expenditure level of the whole family.

Generally speaking, if you plan to buy a house or a car, or have large expenditures in the short term (1 to 3 years), then please commit to increasing your savings ratio.

The higher the number, the faster you will achieve your small goals.

With the advent of the credit society, more and more families are using credit cards and loans to improve their living standards.

It feels great to borrow other people’s money to spend, but don’t forget to pay it back!

In order to have a good idea of ??your ability to repay debt before "borrowing" money, it is necessary to understand the long-term debt coverage rate.

Similar to the monthly expense coverage ratio, the long-term debt coverage ratio is also a multiple relationship, that is, how many times the funds available for debt repayment in the home are the total long-term debt - long-term debt coverage ratio = debt repayment funds?÷? The total long-term debt is usually

, financial planners will recommend keeping this number above 2.5, so that you can feel confident even if you spend other people's money.

1. Monthly expenditure coverage ratio = ? Liquid assets ? ÷ Total monthly expenditures, measuring emergency capabilities 2. Savings ratio = Total amount of income used for savings and investments ? ÷ Total amount of income used for expenditures, measuring savings capabilities 3. Long-term debt offset

Ratio = Debt-repayable funds ÷ Total long-term debt. Isn’t it simple to measure these three numbers for solvency?

Just move your fingers and you'll find the answer in minutes.

It is necessary to remind everyone here not to finish the calculation once and then be done with it. If you keep track of these numbers for a period of time, you will find that they may be changing towards a trend.

Pay attention and treat symptoms as soon as possible!

If you think of the family as a basket and the family assets as the eggs in the basket, then just like the stock god Buffett said, "Be optimistic about this basket"!

Grasp these three numbers and become a qualified family "finance minister".