subject: 4321 Personal Financial Plan [print this page] 4321 Personal Financial Plan
In this modern society, everyone bears great pressure and earn money with great efforts. May I know whether you have such experience juts after one week the whole salary of your month has been used up. In the article, I will introduce some method for you to manage your money effectively, if you insist on this, you will become richer and richer.
The method of 4321 Personal Financial Plan:
After you have got the new salary, at first you should use 40% for investment such as stock, foreign exchange, fund etc. You can choose open-end funds at fixed investment. Every month you can pay for the fund through bank or Fund Inc. automatically with easy procedures, conveniently and time-savingly. After you have spent the money, it has been taken out, which will achieve the effect of forced saving. Open-end fund at fixed investment is rather a good investment behavior.
Every month, you should just use 30% of your whole salary for the basic living expenses such as eating, clothes, mobile fee, fitness, beauty saloon etc. Of course there should be gasoline fee if you have cars, premium fee if you have houses, in one word, this should be your necessary fee every month.
What's more you should leave 20% of your total salary, if some day, you feel happy and want to have a taste of some new food in the world, and then have a SPA, the fund of disbursement will be useful. Then you can have a nice day with your friends.
The last 10% of your salary should be used for insurance, which is a long-time arrangement, and the guarantee for your later life. As an office lady, if you have no plans for insurance, viewing at the point of financial plans, it is unsuitable and dangerous. Usually it is suitable for insurance fee to take up 10% of your whole salary, and insurance company will compensate you at lest 10 times for your payment of insurance.
From the view of financial point, at first you should reserve emergency cash. Usually it is suitable for you to save the living expenses of about 6 months and use your other money for purchasing money market funds, which is usually used for Central Bank bills, short-term bonds and some other kinds of inter-bank bond market, with higher security and higher annual rate than that of demand deposits. When you are in need of money, what you should do is just to sell the money market funds two business days before to ensure its high liquidity.
As for investment, as an office lady, you should broaden the way of investment, setting stable and steady as the basic principle of investment portfolio. When keeping the safety moderately, you should improve service efficiency of capital and profitability of assets.
The above is just some simple suggestion for financial plans. I get the information by chance when search on my laptop(http://www.dinodirect.com/laptops/ ), in my personal opinion, it is useful and helpful. As a graduate who have just gone in for work for several months, I think it is important for us to develop the idea of financial planning and try to use our money in a reasonable way.
With the intention to help others with the idea, I just wrote the above words as suggestion. If you have any other useful advice, would you please leave a comment and then we can have a further communication about the topic, helping more and more people process. Thanks for your kindness in advance. Looking forward to your comment.
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