As the end of the year approaches, this annual problem that troubles many people will repeat itself. The reason why it is troublesome is largely because “you have worked hard all year but haven’t made any money”.
However, this embarrassment has eased to some extent in the past two years. According to a report by the Federal Reserve, the new level of US dollar deposits in the United States reached a historic high in 2022, and deposits increased by 3.58 trillion US dollars in 2023.
On major social media platforms, people’s attention and discussion on saving money are also more enthusiastic than ever before. Topics related to “saving money” such as #saving up to 1 million for early retirement#, #super practical saving tips#, #saving tips# have repeatedly hit the hot search list, making it a new race track to be chased.
In the ever-changing times, a safe deposit is always the greatest source of confidence in life. Saving money can not only better cope with various uncertainties in life, but also prepare for future life such as children’s education and personal retirement.
So, how should we save money? An Xiaofu has compiled 3 efficient savings methods suitable for ordinary people, which can achieve painless savings without affecting the enjoyment of life. Let’s take a look together~
The 1234 savings method, which divides monthly income into four parts according to the internationally recognized Standard&Poor’s four quadrant household chart, namely:
This part is used for daily household expenses, usually accounting for 10%, which is the living expenses of the family for 3-6 months. This part of the money needs to be used to cover the short-term expenses and daily life of the family, such as meals, transportation, utilities, shopping, and travel expenses.
This 20% is used for security expenses, and it is generally recommended to use it for specific purposes, including purchasing medical insurance, preparing emergency funds, and being able to save lives in critical moments, so as not to immediately fall into trouble when unemployed.
This part refers to the purchase of bank deposits, stocks, funds, and houses. For example, if the fund makes a big profit and the house appreciates in value, these investment and wealth management returns are used to make money, that is, passive income.
This part of savings can be said to be the cornerstone of the family, with the largest amount, generally accounting for 40% of the family’s assets, to ensure the retirement benefits of family members, children’s education funds, and money left for children.
The 1234 savings method can help us plan our monthly income and expenses reasonably, while also ensuring a certain amount of financial accumulation.
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