1, status summary table

This was designed by American financial master Laura Langemeyer. The answers to the above seven questions can be filled in the following table 1, which is clear at a glance.

In the process of implementing the financial management target plan in the future, you can take it out from time to time to see if you are moving towards this goal, whether the assets and liabilities have changed, whether the original liquidation skills have really played a role, whether the income has increased or decreased, and so on.

2. Balance sheet

It is about the assets, liabilities and net assets of a family or individual at the moment of making the form. Assets are divided into current assets, financial assets and fixed assets.

Current assets refer to currencies that can be used to pay uncertain expenses at any time, such as cash, demand deposits, balance treasure, money funds, etc.

Financial assets are the money you use to invest, such as buying stocks, funds, bonds, etc. In addition, the cash value of insurance is also a financial asset.

Fixed assets, that is, your house, car, jewelry, gold and other assets that are difficult to realize immediately or will be greatly discounted immediately. It is suggested to separate investment fixed assets from self-occupied fixed assets, which is beneficial to distinguish income.

Liabilities are the money you owe others, such as credit cards, mortgages, car loans, consumer loans, etc. Liabilities are sorted by interest rate from high to low.

Net assets are assets minus liabilities.

3, household income and expenditure statement

It shows income, expenditure and surplus over a period of time, such as a month or a year. It is suggested that the time interval should be marked when tabulating, and monthly or annual household income and expenditure statements can be established.

The principle of balance sheet is also very simple, that is, income-expenditure = surplus.

Income can be divided into active income, passive income, investment income and other income. See table 3 for details.

If you spend money, it is still recommended to keep an account, so that you can know how much your family spends every month or year.

Let's look at how to evaluate our financial situation from these three forms.

1, asset liquidity ratio = current assets/monthly expenditure

This data evaluates the amount of assets that can be quickly realized without loss when you need money urgently. In fact, it is what we usually call emergency money.

It is suggested in the book that the reference value of this value is 3, that is, each family should reserve at least 3 times the amount of expenditure as a daily reserve fund for investing in investment products that can be quickly cashed out, such as demand, balance treasure or money fund. Although the rate of return is not high, it is highly liquid.

However, after the epidemic, everyone knows the importance of cash flow, and it is suggested that it is best to reserve 6- 12 months of expenditure as an emergency fund. Therefore, if the liquidity ratio of your personal or family assets is less than 6, it is recommended to reserve more liquid assets.

2 debt-to-income ratio = monthly debt expenditure/monthly income

Debt-to-income ratio mainly evaluates whether the family can bear the current debt level, and the reference value is 40%.

If the value is less than 40%, it means that the family can cope with the debt at present; If the value exceeds 40%, it means that the debt is too high, which has exceeded the affordability of the family. It is necessary to further control consumption, increase income and clear some debts as soon as possible.

3. Reasonable investment ratio = investment assets/net assets

Reasonable investment ratio mainly evaluates the ability of families to maintain and increase their assets through investment, in which investment assets include the sum of financial assets and investment fixed assets.

It is suggested that the reference value for young people is 20% and that for families is 50%. If it far exceeds the reference value, the investment should be appropriately reduced to reduce the risk; If it is far below the reference value, we should think about how to revitalize some funds for investment in order to increase the scale of net assets.

Of course, you can also adjust the reasonable investment ratio up or down according to your risk tolerance.