How to manage money?

Zhang Ping is a production manager of a construction company with a monthly income of 3,000 yuan. The wife is an ordinary company employee with a monthly income of 2,000 yuan. The two have a lively and lovely child who is not yet one year old. The monthly basic living expenses for a family of three are 1,500 yuan. Another big expense is the transportation cost. Since Zhang Ping's work place is often in the suburbs and there is no shuttle to take, his transportation cost is nearly 800 yuan per month. Both of them are 28 years old. They are young and strong and rarely get sick. They have no medical expenses, but the baby needs an average of about 200 yuan per month for medical care. In this way, they can balance 2,500 yuan per month.

In addition, the total year-end bonus for the two is about 8,000 yuan, the interest on deposits and bonds is 5,000 yuan, the dividends and dividends are about 1,000 yuan, and the annual income is about 14,000 yuan. In terms of annual expenditure, there are mainly some personal exchanges, which are about 1,000 yuan. In addition, filial piety to parents about 1,000 yuan.

Most household assets are deposits

A closer look at their household assets shows that the "biggest" proportion is deposits. Among them, cash and demand deposits are about 5,000 yuan, time deposits are as much as 200,000 yuan, 25,000 yuan have been invested in stocks, and 10,000 yuan of funds have been bought last year. Plus 350,000 yuan of self-housing, the house area of 48 square meters. At present, their total family assets are about 590,000 yuan. Since they bought the after-sale public house from their parents at the "cost price" of 35,000 yuan before they got married, they have no debt at present.

Buy a big house after 5 years

Zhang Ping and his wife have no big plans in the short term, but they hope to buy another house within 5 years, or exchange the existing property for a larger house. Because as the children grow up, the living space required by a family of three will definitely increase, and the requirements for the living environment may become higher and higher.

Prepare for a rainy day to accumulate education funds

This year, Zhang Ping and his wife were most happy because the two had a crystallization of love last year. The child is not yet one year old, and it takes a lot of money to train the child to graduate from university. As the so-called "poor hearts of parents in the world", Zhang Ping and his wife even hoped to give their children at least 200,000 yuan when they got married. These "education funds" and "child marriage funds" are not small expenses and need to be accumulated.

Consider adding a certain amount of protection

Zhang Ping and his wife have social insurance and medical insurance in their units. Both parents are alive and also have social insurance. But parents are healthy now does not mean that they will be fine in the future. Considering that the social security protection is not enough, they are still worried about their pension and medical expenses in the future. The health care and pension reserves of the young couple are also a key issue for Zhang Ping. Zhang Ping's current thinking is that he hopes that he and his wife can have a living cost equivalent to 20,000-30,000 yuan a year after retirement.

Looking forward to the expert's analysis and advice

In addition, Zhang Ping believes that his family's financial management is too loose. Can help him give certain analysis and suggestions, so that they can more easily complete the family's various financial plans.

Expert Suggestion 1: Asset Allocation Analysis

1. Financial Status Analysis

1. Income and Expenditure Analysis: Zhang Ping and his wife currently have a total annual family income of 74,000 yuan. The total household expenditure is 32,000 yuan. The balance ratio was 57%. It can be seen that the family is quite economical. Moreover, the family's income is relatively stable, with active income (68,000 yuan) accounting for 92% of the total income. But it should be seen that with the arrival and growth of new members of the family (there is currently no educational expenditure), the daily expenses of the family will gradually increase. And the family is currently not arranging for any commercial insurance, which obviously needs to be done in this regard. So the family's future spending is expected to rise.

2. Asset analysis: Zhang Ping and his wife currently have a net worth of 590,000 yuan. Among them, financial assets are 240,000 yuan, real estate assets are 350,000 yuan, and the proportion of financial assets is 40.7%, which is basically appropriate. The family has no debt and is financially sound. The main problem with household asset allocation is that the cash deposit component is too high, accounting for 83.3% of all financial assets, and needs to be adjusted.

3. Security analysis: Although the Zhang Ping couple and their parents have social security. However, the level of protection is obviously insufficient and needs to be supplemented by commercial insurance. Especially after their child is born, this young couple needs more protection.

Second, financial management stage, financial management focus and financial management target analysis

Zhang Ping and his wife are only 28 years old, and their child has just been born. This is an important stage of family building and career development. At this stage, the focus of financial management should be arranging family life, and at the same time, it should concentrate on the development of their respective careers. Therefore, the investment arrangement should not be too complicated, and the main consideration should be simple and easy to operate.

Zhang Ping and his wife have many ideas and arrangements for the future. The main financial goals they put forward are:

1. After five years, buy a real estate or exchange for a big house to improve living conditions.

2. The child's future education costs until college graduation.

3. The child's future marriage fund: 200,000 yuan.

4. After the couple retire, they can have living expenses equivalent to 20,000 to 30,000 yuan each year.

Actually, Zhang Ping and his wife have just been born, and they are very young. It is too early to talk about the marriage of their children or their retirement in 30 years. The goal of financial management at the current stage should be to arrange the family's existing finances and family security after the child is born.

III. Suggestions on current financial arrangements

1. Increase real estate investment: After the child is born, a larger living space is indeed needed, and the current 48 square meters for three people is too crowded. At the same time, taking into account their actual asset status and future monthly payment capacity, we suggest that at present, by selling the existing house, then spending about 100,000 yuan in the existing deposit, and then 150,000 yuan in debt to buy a property of about 700,000 yuan. The total living area is more than 75 square meters. And there is absolutely no need to wait 5 years before buying. The house prices then and now are by no means the same concept. Moreover, the family currently has sufficient funds and no debts, and there is no problem with the financial arrangement for the exchange of a property.

2. Arrange appropriate insurance: After the child is born, family security becomes particularly important, and adequate security should be arranged. Specifically, Zhang Ping and his wife need life insurance, serious illness and accident insurance. Children also need to arrange certain medical insurance. The amount of insurance expenditure should be arranged in about one month's family income. Insurance for family protection should be arranged mainly, and insurance for savings and wealth management should be postponed.

3. Build a fund portfolio: Because Zhang Ping and his wife are still very young, they should strive to improve their careers. So investing should be as simple as possible. Therefore, we suggest that the financial assets of Zhang Ping and his wife should be mainly arranged through the purchase of funds, apart from retaining part of the deposits, to build a fund portfolio for long-term investment, and let experts help with financial management, saving worry and effort. The current stock market investment can be temporarily retained, but in the future, it should also be withdrawn at an opportunity, and all investments should be made through funds. Moreover, the balance of monthly income in the future should also be put into the family's fund portfolio in a regular and quantitative manner.

_Our chief financial advisor Xu Jianming

Expert Suggestion 2: Investment Advice

For Mr. Zhang Ping's financial needs, we put forward the following suggestions, hoping to help him.

1. For children's "education and marriage funds"

We recommend a "fool-type" plan. That is, after communicating with financial experts, make a "basket" plan of funds, that is, monetary funds, bond funds, and stock funds make regular and fixed investments at a ratio of 1:2:7. Since Zhang Ping and his wife are young and have a strong ability to take risks, we appropriately increase the investment ratio of stock funds in our proposal. At the same time, we also remind Mr. Zhang Ping to make timely adjustments to the investment ratio when the family situation changes dramatically. Long-term regular investment will better increase returns, and control risk does not require too much effort.

2. For the couple's house purchase needs

The house purchase of Zhang Ping and his wife is for self-occupation needs, so we suggest that a certain percentage of funds can be invested into the capital preservation and appreciation market every year to accumulate house purchase funds. Such as capital-guaranteed funds, money market funds, book-entry treasury bonds, and newly issued savings treasury bonds. In this way, it can maintain its flexibility and find the right time to buy a new house in the form of a mortgage loan within 5 years.

As for whether to sell the existing property to buy a new one in the future, or increase the debt ratio to buy a new one and keep the existing one, it depends on the total amount of household assets and monthly income in the future. If the future capacity is sufficient, of course, the existing old house can also be reserved for rent, and the rent can be used to alleviate part of the monthly supply capacity. If the amount of funds accumulated by the family in the future is not enough, they can choose to sell and buy a big house. The amount of debt can be calculated from the monthly income capacity at that time.

Although it is theoretically considered that the monthly payment amount is safe as long as it does not exceed 50% of the monthly income, we recommend that the monthly payment should not exceed 1/3 of the monthly income, otherwise the basic life of a family of three will be affected. Small pressure, and even become a "house slave" family.

3. In Mr. Zhang Ping's family situation, we noticed that he is a production manager of a construction enterprise, and the construction industry is an industry that is greatly affected by economic fluctuations. This has a detrimental factor on the long-term stability of his family income. Because both husband and wife are only 28 years old, we suggest that Zhang Ping and his wife also prepare an "education fund" for themselves every year. Further "charge", learn some new knowledge and skills to improve yourself. In our opinion, financial management is not only investment planning for money, but also investment planning for oneself, and perhaps the return on income will be higher, and the family financial planning can be realized better and faster.

_CCB Shanghai Branch Luwan Sub-branch Ma Junjie

Expert Suggestion 3: Insurance Advice

The risks faced by families are nothing more than the risk of personal loss, property loss and liability loss. On the surface, the financial situation of Zhang Ping's family is basically stable, and there is no debt to be "negative". However, once there are uncertain factors such as serious illness or accident, it will not only seriously affect the psychological state of the family, but also affect the family's health. The financial situation causes different degrees of impact, so it is absolutely not to be said, but it cannot be ignored. Moreover, they plan to buy a large-scale house in the future, and it is estimated that they will need to increase their debt burden.

The analysis of risk should start from two perspectives: the possibility of the loss and the severity of the loss. The probability of death of Zhang Ping and his wife is very low, but the risk of accident cannot be ignored, especially Zhang Ping himself is engaged in the production management of construction enterprises. In the event of an unforeseen event, household income will be cut by more than half.

One of the best ways to solve this problem is personal accident insurance. Its biggest advantage is that it provides an income in the event of an accident causing the loss, which can make up for the loss and relieve the financial pressure on the living.

After buying a new house in the future and having debts, you should also add a certain amount of life insurance protection.

According to Zhang Ping's needs, he wants to buy pension and medical insurance for himself and his wife, as well as choose insurance such as education allowance for his son. However, according to his family's income ability, we suggest that he suspend the old-age insurance plan for the couple and wait until ten years later, that is, after the age of 37 and 38, before considering the old-age insurance.

The medical insurance for the husband and wife should start now. After all, they are also "running three" people. Although they are young and strong, they don't even have any medical expenses to point out, but they will definitely feel it in two or three years. The sub-health state of the body is coming. Moreover, with the excess physical strength and energy expended in raising young children, Mrs. Zhang's physical condition may face a downward trend. To this end, Zhang Ping can first choose certain medical subsidy insurance and serious illness insurance for himself and his wife. In terms of children, if the physique is weak and the units of both spouses cannot afford any medical expenses, then you can also choose a children's medical insurance for the child, transferring the family's medical burden risk to the insurance company.