Glamor Economics

Chapter 181

Chapter 22 Section 10 Choosing the Right Financial Plan - Financial Planning

Everyone needs to face and deal with housing, education, medical care, pension and insurance issues independently, so everyone needs to take responsibility for financial management and achieve "I am the master of my money".Financial management is not simply saving and saving, but also requires reasonable investment.

Everyone's risk tolerance is related to their individual circumstances, and we should formulate the optimal investment strategy based on our own income level.Let's take three income levels as an example to make a simple analysis of financial planning.

1. How to carry out financial planning with a monthly income of 5000 yuan

Ms. Zhang is 29 years old this year. She and her husband, Mr. Bai, work in the same large enterprise. Their monthly income is 5000 yuan.After three years of marriage, the two have savings of 3 yuan.Although in the city where they live, the income of the two is relatively good, but considering the pressure of family expenses such as house purchase, children's education, and parental support in the future, Ms. Zhang is worried that the family income cannot be effectively used and managed scientifically.

Judging from the family situation of Ms. Zhang and his wife, although their current family income is good, they lack the necessary protection.Family financial management requires absolute stability, and a stable financial management method is more suitable for them.

Therefore, it is recommended that Ms. Zhang invest in an investment portfolio that accounts for 40% of savings, 30% of national debt, 20% of bank wealth management products, and 10% of insurance.In the proportion distribution of household wealth management, savings accounted for the largest proportion, which is to support the stable appreciation of household assets; treasury bonds and bank wealth management products are placed in the middle, and the income is relatively high, which is also very safe; although the ratio of insurance is only 10%, it is still safe. The safeguarding effect played is not trivial.

2.How to carry out financial planning with a monthly income of 3000 yuan

Xiaoqin has graduated from university for two years. Now he works in a public institution and has a stable job. He is currently single with a monthly income of 3000 yuan. He has no mortgage or car loan.The monthly remaining salary is 2000 yuan, and there is a deposit of 10000 yuan.Xiao Qin hopes to use the remaining funds every month for some low-risk investments, and the income is higher than that of bank deposits.

Xiao Qin is in the primary stage of his financial management life, but his career has entered a stable development stage, so his financial management prospects are broad.Specifically, in terms of financial planning, the work unit provided Xiao Qin with three insurances and one fund, and Xiao Qin himself purchased commercial insurance, which can be described as double insurance, so there is no need to add any insurance products.Although Xiao Qin has neither a mortgage nor a car loan, Xiao Qin's remaining funds are not very high.Xiao Qin has no experience in financial management and requires investment in financial products with lower risk and higher yield than bank deposits. It is suggested that Xiao Qin must choose a stock fund with a long management time under the guidance of a professional financial planner.

3.How to carry out financial planning with a monthly income of 2000 yuan

How to use the money?May wish to learn from the following practices:
Living expenses account for 30% to 40% of income
Living expenses are the most basic expenses.Before investing, take out the expenses that must be paid every month, such as rent, water and electricity, communication fees, firewood, rice, oil and salt, etc., which account for about 1/3 of the income.This part of the expenses is an indispensable part of life and meets the most basic material needs.

Savings account for 10% to 20% of income
The part used for savings should account for about 10% to 20% of income.At the same time, at least 3 months of basic living should be guaranteed.You must know that many companies cut salaries and layoffs at every turn. If you have no savings at all, once your job changes, you will be very passive.

Activity funds account for 30% to 40% of income
The rest of the money, which accounts for about 1/3 of the income, can be spent in different places according to the life goals at that time.In this way, you will know how to spend, and you will not spend all your money at once.

Of course, the above are just suggestions for financial planning for people with three different income levels.In fact, even if the income is the same, the financial planning must be different in different cities, family situations, personal consumption characteristics and other factors.Each of us should have the flexibility to choose our own financial planning according to our own situation.Most importantly, people of different income levels should designate a financial plan that suits them.

[links to related words]

Financial planning refers to the use of scientific methods and specific procedures to formulate practical and operable plans for oneself, including cash planning, consumption expenditure planning, education planning, risk management and insurance planning, tax planning, investment planning, retirement pension planning, property planning, etc. A certain aspect or a comprehensive plan such as distribution and inheritance planning, so that oneself can continuously improve the quality of life, and finally achieve the process of lifelong financial security, autonomy and freedom.

Financial freedom mainly includes two meanings: first, the cash flow income obtained through financial management is sustained and stable, and is far greater than the total annual expenditure of individuals/family; The flow is much greater than the capacity of the individual/household's total annual expenditure.

(End of this chapter)