Do you have to be happy if you have money? Not necessarily!

Smart people all know that money is only the basis for improving the quality of life, and true happiness comes from a harmonious and balanced life, which is the direction of our efforts.

So is financial management.

The profit of a single investment tool or product only represents the record in a certain period of time in the past, which only shows that a successful transaction has been realized.

Remember, this is a transaction, from the initial purchase to the completion of the sale.

What we mean by financial management is to do a good job in the planning and distribution of "financial" things, that is, asset allocation, on the basis of "managing" and clearing risks.

In more popular terms, it is to arrange and invest assets and configurable funds reasonably according to your personal or family's life goals for a period of time and the rigid needs of your life stage.

When it comes to asset allocation, many people may have the following two mentalities.

A diaosi who thinks that asset allocation is for the rich and has just met the basic needs of life without any savings is far from being done.

In contrast, another person feels that no matter how much money is used for financial management, it should be strictly implemented in accordance with the standard proportion of asset allocation recommended by families of different ages. For example, in the quadrant chart of S&P family assets, which we are most familiar with, many people almost rigidly adhere to the allocation ratio of "1234" in actual operation. As we all know, asset allocation only provides direction and ideas.

This is why many young people with low incomes and limited deposits always feel that their assets cannot be allocated at all. For example, the company's new employees have a monthly salary of 3,000 yuan. If strictly in accordance with the distribution ratio, 10% of the "money to be spent" is equivalent to 300 yuan, but this is not enough for a week's rent. Obviously, for these young people, it is urgent to establish the awareness of asset allocation and effectively open source.

Atlas tells you the train of thought.

Many people around me are saying: My goal is to achieve financial freedom.

So many of them are desperate, even desperate, just to make more money. In the minds of these people, "earning enough money = financial freedom", but in fact, once they stop working, they will face a rapid decline in income. Obviously, the key to financial freedom is to increase the weight of "passive income" in addition to actively opening up sources, so as to achieve the state of not trying to make money for living expenses. To put it bluntly, the "passive income" generated by all kinds of assets you own must at least equal or exceed your daily expenses.

For example, suppose a person spends 6,000 yuan a month, and his "passive income" of monthly wealth management income plus royalties is 7,000 yuan, then this state is financial freedom.

Obviously, "passive income" has played a vital role in realizing financial freedom.

So what does "passive income" include? Personally, I think it can be divided into two categories, one is wealth management income, and the other is value-added income or extra income generated by long-term labor or accumulation.

For an inappropriate example, if you put your money in the bank, the monthly deposit interest actually belongs to the category of "passive income", but it is too meager to even resist the erosion of the principal by inflation. In fact, the "passive income" of financial management is the result of comprehensive allocation, such as the rent of rental housing+long-term holding of blue chips through dividends or long-term appreciation+holding of index funds+equity investment income and so on.

In contrast, your hard-working novels, scripts and even self-media are also "passive income" after being widely recognized by the market and target readers.

In addition, there may be "unearned" income such as inheritance and lottery winning, which depends entirely on luck. Because the probability of occurrence is not universal, it is temporarily not included in the category of "passive income".

In other words, the premise of any "passive income" is to create "active income" first. The process of creating "active income" is also a process of continuous effort and accumulation, that is, paying labor, time and youth at a young age and accumulating experience, skills and original funds.

Yes, Zhang Ailing has a famous saying-Be famous before it is too late! However, for more young people who have just entered the workplace, it is still too early to improve their earning ability and establish the awareness of asset allocation. In this regard, the following suggestions are for reference:

First of all, it can be said that it is a shortcut to improve the ability to make money by clarifying one's own advantages and strengths and finding ways to obtain "active income" from the good side.

For example, if you have painting skills and are good at originality, you can consider finding an open source in illustration. It doesn't matter even if your job has nothing to do with it, because no one can be sure that you can keep your job until you are old. What's more, those who are already in a state of financial freedom have almost zero "active income" accumulated only by wages in the early stage.

Secondly, no matter how low your income is, don't make excuses to be a "moonlight family" who is not responsible for yourself.

To some extent, moderate consumption can stimulate a person to work harder to make money. But if you spend too much, you will only fall into a vicious circle of "making money-spending-overdraft". Once this cycle becomes normal, it means that you are getting farther and farther away from the goal of financial freedom.

Third, please look at idle funds from a "cake perspective".

Forcing yourself to save every month is equivalent to dividing your income into two parts: "money to spend" and "spare money" The latter can be summarized as the object of asset allocation, which can be regarded as a cake. How to cut, how much to cut and how to allocate are the core issues involved in asset allocation.

Usually, it is suggested that money funds with strong liquidity and index funds with high risk-return ratio should be used as the starting point for initial idle fund allocation.

In short, from the age of 30, your "passive income" should be in a state of benign growth. Even if your "asset cake" has not been completely divided, it will at least allow you to obtain relatively stable value-added income on the basis of avoiding the risks of accidents and diseases.

Wen Gongqun, say what you want to hear and write what you want to see. WeChat official account: Wen Gongqun.