The path to wealth freedom for ordinary people

In recent years, financial freedom has been deeply rooted in the hearts of the people and loved by everyone. Now young people, in addition to lying flat, want to get more money. So today we come to talk about ordinary people, how much money can achieve wealth freedom.

First, we have to know what wealth freedom is. Literally, how much money covers our daily expenses. If a person with a pure heart and no desire is good enough to feed himself. The monthly expenditure of 1,000 yuan is definitely enough. If it is a person who wants to enjoy life, it is not easy to say. In general, as we ordinary people, a family of three, I think 10,000 a month, almost can cover our daily expenses. So, I will take this as an example to talk about how much money a family with a monthly expenditure of 10,000 needs to invest and can achieve wealth freedom.

Secondly, we set up three accounts to manage our money in different categories. Account 1: You need to spend 10,000 * 12 = 120,000 a year. This money is used to buy money funds, with an interest rate of about 2%, and it is used as you go.

Account 2: It takes you 120,000 yuan to spend 10 years * 10 = 1.2 million. This money is used to buy 3 different types of bond funds, this combination of annualized returns is actually not low, about 7% or so, we will calculate according to the conservative 5%, there will be tens of thousands of returns every year, the first year to take the monetary fund, the second year is 1.2 million x 1.05 = 126 thousand, was taken away 120,000, there are 1.14 million, the third year is 1.14 million x 1.05 = 119.7 million, take away 120,000, There are 1.077 million left, and by the 16th year, the account will be taken clean.

Account 3: This account is dominated by balanced assets. Invest in two partial debt funds, two index funds, and one fund with equity and debt allocation. If the cycle is more than 10 years, as long as everyone does not look at it, this combination should be able to obtain an annualized return of more than 10%. And it will be very stable. We'll just put all the rest of the money into this, about 4 times in 16 years, and when we spend the previous two accounts, it should be the 16th year. So the money in account one + account two = 120,000 + 1.2 million = 1.32 million. The money required for account three = 132/ 4 = 330,000. When the money in account one and account two of the 16th year is used up, the money in account three is withdrawn and distributed again according to the above method.

Account 1 + Account 2 + Account 3 = 120,000 + 1.2 million + 330,000 = 1.65 million. So according to this investment method, you only need 1.65 million to achieve a monthly expenditure of 10,000 to live. This premise is that you do not chase the rise and kill the fall, you just need to hold it according to the method, and when the time comes, you will withdraw money from the account to spend, and strictly follow this method.