1. The smartest way to save money is to set a reasonable ratio of daily consumption to income, within which the quality of life can be maintained to the greatest extent. Statistician Engel pointed out that the less a family's income, the greater the proportion of family income (or total expenditure) spent on food. With the increase of household income, the proportion of household income (or total expenditure) spent on food will decrease. This is the famous Engel coefficient. Generally speaking, the lower the Engel coefficient, the better. According to the figures published on the Internet, China's Engel coefficient was 28.2% in 20 19, which has been declining for eight consecutive years. According to the Engel coefficient published by the Bureau of Economic Research of the US Department of Agriculture in 20 18, the Engel coefficient of the United States itself is only 8. 1%. This reflects at least one aspect that food and means of subsistence in the United States are cheap relative to residents' income.
If we control the proportional value, we can set aside more capital in Qian Shengqian and buy something irreplaceable. For example, if you say that the monthly salary is only 5,000, what if a commodity needs four digits? So the second principle is to find ways to spend the money generated by income, although sometimes we need to delay consumption. I wonder if you have noticed the innovative bank deposits. Nowadays, many products are full-term interest return, that is, the interest generated by paying the principal every once in a while, and the principal continues to earn interest for us. Including myself, I bought a wealth management product last year, which is an income model with interest, which is equivalent to buying something with part of the interest. Interest is renewable. If you buy it at buy buy with interest income, the principal can still bring a steady stream of cash flow. Just like the old saying goes: If you stay in the green hills, you are not afraid of running out of firewood. Therefore, it is very reasonable to raise golden geese in Qian Qian. We should fatten the goose so that it can lay eggs continuously. If you kill it early, you can really drink the northwest wind after this meal.