In life, people always neglect and calculate the small money and small wealth in daily life, but the small amount of money can make a lot of money. It is said that food is not poor, clothing is not poor, and that if you do not calculate, you will be poor. These all warn us that we need to be diligent and thrifty in life. So what financial formulas are there in life that are worth learning from? How do these financial formulas help investors manage their money?

1. Expenditure = Income – Savings
Many salarymen with strong financial awareness will deposit the surplus money from daily consumption into the bank after receiving their salary every month. This method often results in different amounts of money saved each month due to unplanned consumption, sometimes even “moonlight”.
If you can change the concept of “savings = income – expenditure” into the concept of “expense = income – savings”, first deposit 30% of your income in the bank every month, and use the remaining money for consumption funds in the month, then your small There will be more and more money in the vault.

2. Steady financial management = 50% stable defense + 25% strong attack + 25% stable attack
After accumulating a sum of funds, 50% of the funds can be used for fixed deposits, money funds or the purchase of bank capital-guaranteed wealth management products; the remaining 25% of the funds are invested in high-risk, high-yield investment products, such as stocks or stock-type products. Funds; the remaining 25% can buy relatively stable high-yield financial products. For example, Internet current financial products such as Carp Wealth Management, the annual income of more than 6.2%, can be deposited and withdrawn at any time, ensuring income and safety.

3. The proportion of risk that can be taken = (100-current age)*100%
For example, if you are 30 years old this year, the proportion of risk you can take is (100-30) * 100% = 70%. That is to say, 70% of the idle funds can be invested in high-risk and high-yield investments, such as stocks; the remaining 30% can be used for stable investments. Allocating assets at this ratio and diversifying investments can reduce risks and increase returns.

4. Monthly income of loan repayment amount * 35%
In order to make daily life and monthly investment not affected by too much debt, the monthly repayment of loan principal and interest should not exceed 35% of income, and generally 20% is appropriate.

5. Pension expenses = current annual expenses * 20
After the income and consumption are basically stable, you can start to prepare a deposit equivalent to 20 times of your annual expenditure (annual income minus annual savings), and save it for your daily living expenses after retirement.

6. The perfect plan for family finance: 4-3-2-1
The reasonable allocation ratio of household assets is: 40% of household income is used for housing and other investments, 30% is used for household living expenses, 20% is used for savings for emergency needs, and 10% is used for insurance. Such a distribution ratio can effectively diversify risks and help household assets maintain and increase in value.