Monetary assets
Three ways of wealth growth
Financial quotient is the ability to solve personal financial problems, or wisdom. Financial quotient doesn't tell you how to make money. Its essence is to tell you how to control your life, family and career.
What financial business should solve is why we have money, not how. Another question is, why do you keep working when you have enough money? In other words, the mission of our generation is not to leave poverty to our next generation.
Look at the people around you, some have been buying houses, that is, increasing their assets, and some have been looking forward to maintaining their fixed income. Think about it, which is easier to achieve wealth growth, his open source or your cost reduction? When you buy a house, wealth goes up, but when you want to keep a fixed income, you go down, and as a result, you can't keep it.
From this perspective, we should regard investment and making money as a game and learn to enjoy it, rather than simply making money. In other words, when you have fun, making money is fun. Actually, life itself is fun. We shouldn't live in fear and anxiety. We should improve our financial quotient through entertainment.
When it comes to price, we naturally associate it with money or currency. Generally speaking, if a person realizes wealth freedom or wealth, he is rich. In fact, we all know the concept of currency, such as RMB or USD. In fact, have you ever thought that the main carrier of money is paper money, and paper money itself is worthless? In fact, it is just a piece of paper, a printed matter, and it has no value in itself. Everyone likes it, because the country's credit is condensed behind it, so this kind of paper money has become valuable.
In other words, money itself is not wealth, but its purchasing power. For example, you have a pile of money in your hand. If there is inflation, your wealth will evaporate overnight.
Therefore, after understanding the concept of money, all our wealth goals are no longer aimed at making money or making money. We must learn to own our own assets. Assets are things that can continuously bring cash income. If we have money in our hands, we should learn to turn it into an asset instead of saving it. It's worthless to put away, and it may depreciate. Money is a basic means of production, so try to make it flow. )
Money and money
You have money now, or a little money. What should you do if you have money? Should I put it in the bank, buy a house or invest in stocks? Or what? As we all know, people don't have a good investment channel now. Put it in the bank, the interest rate is relatively low, others don't know much about it, and it is risky. How to reasonably allocate the money you have now is also a kind of financial management knowledge.
If you have some spare money or are not short of money now, how should you distribute it? Give everyone a suggestion. This proposal is extracted from the collection of more than100000 excellent families and their asset allocation methods. If you have spare money, you should allocate assets, or money, from four aspects.
Allocation of monetary assets
First of all, look at the upper left corner, that is, you should set up a living account for yourself to meet the daily demand for saving money, accounting for about 10% of the total cash, and the second leveraged account accounts for 10% of the total assets. What is a leveraged account? In fact, it is a small and wide account.
For ordinary people, insurance is the most convenient account, but now many people have not established the concept of insurance and think that insurance is unnecessary. In fact, insurance is a very important investment for life and family. In fact, there is a great guarantee (and an important option) in the future, so you can find that many developed countries abroad attach great importance to insurance.
The third account can use the extra money for investment or wealth management, accounting for about 30%. Be sure to bring your spare money. For example, the aforementioned funds, stocks, real estate, etc. Of course, financial management is risky, and you should be prepared to take risks.
The last one is a retirement account. If there are children, there is actually an education account. In this account, a certain amount of cash is invested every month, accounting for 40%, which is the largest proportion.
Among them, special emphasis should be placed on the fourth account, namely the retirement and education account. This statement has two principles. The first principle is capital preservation, and the second principle is actually capital preservation. It is important to say it three times. Don't expect this account to appreciate or appreciate much. As long as you don't lose money, you can beat inflation.
Then you may say, how can we beat inflation without losing money? You need to choose some better financial products, such as treasury bonds, bonds or better funds. Of course, the specific situation needs specific analysis.
The above is the understanding of money and how to distribute it when you have some spare money. I hope it will inspire and help you.