The husband was stunned and thought it was impossible. The household expenses he paid to his wife every month were 10,000 yuan, and in 10 years it was 1.2 million yuan. Even if half of it was used, there should be 600,000 yuan left. This does not include his wife's salary.
There is a couple who have a lovely child, the family has an annual income of more than 400,000 yuan, and they hold a self-occupied property that does not require repayment of the loan. The wife did not buy brand-name bags, clothes and shoes, and lived a casual life, so her husband said whether she could not dress herself like an aunt.
Regularly speaking, such a family should have a lot of savings, but after living together for 10 years, my wife found out when she took stock that the family's assets were only about 200,000 yuan.
And the wife also felt it was unfair. She said that the family expenses were very expensive, including the children's extracurricular training fees, annual travel fees, filial piety fees for parents, favors for treating guests to dinner, car maintenance fees, insurance fees, etc. After the wife told her, the husband still felt that there was something wrong.
Their family’s money is mainly invested in the stock market. Every time the wife pays her salary, she will invest her salary and household expenses into the stock market, but the money in the stock market does not rise, but instead becomes less and less. So the husband attributes the reason for the family’s savings to his wife’s loss in stock trading . Now, my wife complained about her injustice. She said that she had lost some money before, but she also made money back, and overall she had a slight surplus. But because she put all the money in her family in the stock market, her family’s expenses are basically withdrawn from the stock market, and the profits are not withdrawn quickly, so that the money in the stock market is getting less and less. The husband was skeptical about such an explanation.
Later, the husband suggested that he could not put all the money in the stock market, and that he should keep cash at home because they are all middle-aged, with old people above and young people below. If something happens, he should also have cash to help.
The wife later followed her husband's advice and divided the family's funds into 4 accounts: emergency account, expenditure account, money-making account, and guarantee account.
The first account: emergency account, dealing with various expenses after illness or unemployment, accounting for 10% of income.
Emergency account is actually cash flow account, allowing you to still be able to afford various loans when your income is out of stock during unemployment or illness, and be able to cope with your daily life.
Generally speaking, it takes almost 3 months for an individual to go from unemployment to employment, from illness to recovery, so we need to reserve at least 3 months of cash flow. If you want to deal with more serious emergencies, such as an epidemic or a financial crisis, cash flow can be appropriately reserved for 6 to 12 months.
The allocation of cash flow should be before investment and consumption, that is, cash should be reserved as soon as possible after income is available, and then investment and consumption should be carried out. Because accumulating cash flow is a long-term job, the reserved ratio is at least 10%, that is, if you have an income of 10,000 yuan per month, you should take out 1,000 yuan per month as cash flow reserve. If you want to save enough cash flow faster, you can reserve more cash every month. After the cash flow meets the needs of 3 to 6 months, you can no longer reserve it and transfer the money to the second or third account.
The second account: expenditure accounts, such as mortgages, car loans, daily consumption, etc., accounting for 36% to 50% of the income.
This account is very important, it is related to your credit. If you always postpone repaying mortgages, car loans or credit cards, then there will be bad records on your personal credit report, and it will be more difficult to borrow from the bank in the future.
In order to protect personal credit reports, one must first repay on time, and the other must borrow less micro loans.
Nowadays, more and more third-party payment platforms have some credit card-like products, but they are not credit cards, but micro loans. Once used, they will generally be displayed on personal credit reports. If you borrow and repay frequently, the bank will think that your funds are in bad condition, and when you want to apply for a mortgage, the bank may refuse to lend. Therefore, if these micro loans are not necessary, try to use them as little as possible.
The third account: money-making account, which can be used for financial management, accounting for 30% to 44% of the income.
" Aesop's Fable " The story of "The Goose Laying the Golden Egg" is most suitable for explaining what is money-making account.
Farmer Tom and his wife Elena are very poor, they make a living by selling goose eggs. One day, the goose at home actually lays a golden egg, which can be exchanged for a lot of money, and the next one every day, their family's life is getting better and better.
Later, they hoped that the goose would lay more than one egg every day, so they gave the goose the best food, but the goose would still only have one egg every day. They wondered if there would be many golden eggs in the goose's belly. So Tom and Elena killed the goose, but there was no golden egg in the goose's belly. From then on, they had no golden eggs again and their lives fell into a tight state.
This story tells us: Keep the goose that can lay golden eggs, so that your money will continue to flow. This goose is equivalent to a money-making account.
money-making account usually contains spare money, which can be used for one to two years or even longer, so that you can invest in some medium and high-risk financial products.
The fourth account: protection accounts, such as social security, commercial insurance, etc., account for 10% of the income.
Social security and medical insurance must be paid. Even if you don’t have a job, you must pay it as a freelancer. It is best not to let social security and medical insurance be cut off. After all, in the future, they are the most basic protections.
If you want to further transfer the risks of illness, accidents, etc., you must consider commercial insurance. Especially for the main economic forces of the family, it is best to fully critical illness insurance , medical insurance , life insurance, and accident insurance, and buy insurance for adults first and then for children.
A friend of mine has benefited from commercial insurance. She started buying critical illness insurance at the age of 25. As her income increased, she continued to increase her insurance to 1.64 million yuan. When she was unfortunately diagnosed with cancer in 2018, she received a one-time compensation of 1.64 million yuan, which is equivalent to living expenses and nutrition expenses for the next few years. It is precisely because of so many compensation that she can seek medical treatment all over the world without worries.
The premium of commercial insurance should not be too high, it is best not to exceed 10% of the annual income. If you pay too much premium every year and are under too much pressure, you may be overwhelmed by the premium before you even use the insurance.
A friend of mine has an annual income of 500,000 yuan, and the insurance premium for the whole family is 70,000 yuan per year. After paying the premium for two years, my friend felt very stressed and wanted to give up the insurance, but at this time he found that there was very little money he could get back, so he had to give up.
Therefore, insurance must be available, but the principle of insurance "stripping the big with small", that is, using the minimum insurance premium to leverage the high insurance amount. If it is an insurance with high premium but not high insurance, especially an insurance with premium inverted (the premium is higher than the insurance amount), there is no need to buy it. It is better to manage your finances well, and the money you saved can be used to pay various medical expenses in the future.
When the wife built these 4 accounts, the husband felt much more at ease, and the wife also learned not to put all the money in the stock market, but to put it in different accounts and try different ways of managing finances.
