Puppy Money Lesson 4: How to Solve Debt? Leave enough cash flow

After learning to earn money, Gia began to formally embark on her third and most important dream - to help her parents solve the debt crisis. Puppy Money Money says that solving the debt so easy, only need four steps, which four steps?

In addition, the basement of the neighbor's Wife Tao Mu's house is hidden with a lot of cash and jewelry, and cousin Marcel said that rich people love to put money in their homes. What is the reason for this?

Well, for this lesson, we'll start with these four pieces of advice for solving liabilities.

(1) Four words of advice for resolving liabilities

First, Money says to stop all credit cards. Because swiping a card will cost more money than you would with cash.

This is very understandable, the swipe is the future of the money, a careless overdraft, and the cash said no is gone. If you have this problem, you may wish to exchange your credit card for cash or debit card. In addition, like Gia, you can divide the money into 10 parts, 5 parts for investment, 4 parts for the dream piggy bank, and 1 part for pocket money.

Everyone can decide this distribution ratio according to their actual situation, especially those who are easy to swipe the card, spend money within their own income, and do what they need.

The second point is to repay the loan as little as possible, that is, to repay the money within the permitted range at the lowest number of installments.

According to Chinese's idea, it is natural to pay off debts. If we owe anyone money, we must have been carrying this matter in our hearts, and we would not be able to sleep well or eat, and we would like to use every penny we earn to pay off our debts. But qian qian said, why bother! The reason it gives is that the higher the installment amount, the less living expenses will be saved each month.

Let me explain first, if you don't have a lot of debt, then it's best to hurry up and pay it back, right? However, if you owe a lot of money and can't pay it off in the short term, you may want to refer to this advice. Suppose you earn 8,000 yuan a month, you need to repay 6,000 yuan, after paying off only 2,000 yuan, which can include your month's food, clothing, housing and transportation, in case you want to buy a large piece or have to spend money, you can only borrow money.

Sometimes people don't realize that the cost of living can be that high, and it all leads to the result that new loans are used to repay old loans.

The third point is for consumer loans. Save half of the money that is not used for life, and the other half for consumer loan repayment. It is best not to apply for a consumer loan at all.

Here, money means that half of the balance of the monthly income after removing living expenses is used to repay the money, and the other half is saved and built dreams. There is an advertising slogan that people are different because of their dreams. Yes, people have dreams to have goals to strive for, will have the motivation to make money, even if there is no goal for the time being, they can save this part of the money first and use it.

Also, it is recommended that you do not have to wait until the debt is paid off before you start saving money, but start immediately so that you will not apply for a new loan.

The fourth point is about establishing a correct view of consumption. When spending money, you must ask yourself: Is this really necessary?

No one's money comes from the wind, but some people spend money faster than the wind. Now there are many public accounts and marketing number articles that are advocating consumption, happy, buying, angry, buying, holidays, buying, bored, or buying. Whenever the night is quiet, it happens that people's willpower is the weakest, as soon as everyone sees the advertising copy of what "be nice to yourself" and "don't wronged yourself", they immediately think, I work so hard during the day to do cattle and horses for a better life! Don't hesitate, buy it, it's right! This is actually a bit misleading to the public.

I know some people, men and women, a lot of things to buy and use once or twice on the idle, especially wasteful, dim sum also know to put the second-hand platform to sell, the trouble is put at home ash. I hope that everyone will go back and see what things in the house are only used once or twice, which are impulse consumption, and how much these things add up to their value. After paying, you can also ask yourself, do I really need this thing? Is it possible to rent or borrow someone else's?

The will is particularly unsteady, and it is even possible to paste this sentence in the wallet. But then again, there are not many people using wallets now, and everyone can set the lock screen of the mobile phone and see it every time you make a payment.

Also, now many parents save money themselves, but as soon as they hear that this thing is good for their children, they immediately accept it all according to the order, and they can't be bitter about their children. Not to mention that the child's ability to absorb and learn can not keep up, parents are also very hard. I have seen a data, some families in China, the expenditure of children accounts for more than 50% of the total expenditure of the whole family, which is very high. Children spend this piece, or to consider the actual situation, do not follow the trend.

After the four points of advice are finished, is there any inspiration for you? In any case, Qian Qian's words reminded Gia to start saving early and never get into the same predicament as her parents.

(ii) Cash in Mrs. Taomu's house

Now, let's talk about one thing that rich people have in their homes: yes, cash.

While the neighbor, Mrs. Taomu, was on vacation, the home was subjected to burglary. Fortunately, Gia and her friends used their cleverness and bravery to successfully resolve and successfully call the police to catch the thief and avoid property damage. In Mrs. Taomu's basement, they found a large amount of gold, jewelry, and cash. Why risk putting so much money at home instead of putting it in the bank?

Mrs. Tao mu explained that the money was no more than 10% of her assets, that it was reserved for emergency use, and that whatever happened would be enough to prop up her for a few years. In addition, she invested a lot of money in stocks, so keeping a part of the cash also helps to protect against investment risks.

Mrs. Tao Mu's cash at home is the second point of knowledge that will be introduced in this lesson - cash flow.

With people who "never manage money and spend everything in the moon" to the other extreme, some people immediately throw out as soon as they have money in their hands.

I have a relative who has a habit of buying money. If you have 8,000 yuan in your hand, you will definitely move another 2,000 yuan from the living expenses and make up 10,000 yuan to buy a regular period. The regular risk is relatively small, the return is also very stable, and on the surface it does look like it is careful and improves the utilization rate of funds. But then encountered such a situation, once his daughter wanted to sign up for the school's summer vacation study tour, it needed more than 10,000 yuan, and it had to be paid within 3 days. He poured well, the money was taken to buy financial management, only left 1 month of living expenses, seeing that the deadline was coming, had to find someone else to borrow 5,000 yuan to "transition". After that, he learned to be obedient and left more money on hand, otherwise he would really encounter some sudden incident, and he would not have the ability to resist risks at all.

However, how much money is more appropriate? I recommend that you keep living expenses for at least 3-6 months. Let's say you spend an average of $5,000 a month, it's best to keep $15,000 to $30,000 in your hand. You can put this money into some platform baby products, you can take it at any time, how much there is still a little income, in case of emergencies such as unemployment, major diseases, and moving, this money can be used immediately, and it will not panic to find someone to borrow.

In addition, our fixed investment course also mentioned that 1/2 of the money left in the monthly balance is used to make a fixed investment (investment), then the reverse is that the remaining 1/2 is your cash flow.

Summary of this lesson

Well, the third focus is how to solve the debt here, we said four principles, (1) with cash or debit card instead of credit card consumption; (2) (3) is for people who already owe money, it is best to keep some cash in hand; (4) is to ask yourself before buying things, to achieve rational consumption. Then we told Mrs. Tao Mu's story and distilled the keyword "cash flow". Finally, we recommend that you keep a full 3-6 months of living expenses in case you need it.