Wage earner financing method

For the wage earner, there are two main sources of income: income from work and financial income. Once a financial capital, you can\'t rely on income from work, should gradually increase the proportion of financial income in gross income. Start early financing, there will be opportunities for early retirement to enjoy life, here\'s a \"financial equation\" can give us some insights: financial equation =50% steady keep +25% steady attack +25% storm.

50% stable keeping

First, put half the savings in the banks on deposits or bonds, the money is not the role of increased income, but capital preservation. Other than deposits and Treasury bonds, you can also look at other low-risk financial products, such as RMB financial products, and money market funds, principal of the investment in these financial products more secure. Although the rate of return is expected to yield, there is no absolute guarantee, but in fact yield fluctuation range is very low.

25%-stable-tapping

For a steady attack part, a certain person can choose some fluctuation of the investment concept of smaller, rewards the more robust of financial products, such as hybrid funds, large blue chip, the pursuit of yield in the 5% range-. However, to do some homework before the investment and choose the good stocks and funds only; also need to be the concept of the portfolio through diversification to reduce risk.

25% storm

Storm part is the most exciting part of the finance and investment, such as growth stocks, equity funds, futures and other, existing opportunities to make people a month to get 10%, possibly a month pay out 10%. High risk high return of investment in these financial products, must have a very high threshold of knowledge and experience. Not good at working families of investment, it is best to steady manner of attack, after you get some experience in investment, then adding storm owners to pursue a higher degree of profitability.

Is to be noted that, \"financial equation\" of offensive and defensive proportion can be flexibly adjusted, which depends mainly on the personal risk tolerance and financial goals, if you can bear certain risks and without large capital expenditure plans in the short term, may increase the proportion of storm part, but suggested that part of the weight should not exceed 50%. For the conservative investor, you can increase the proportion of steady keep, reduce the proportion of storm.