I really appreciate this saying: Investing is a practice.

In this market, countless people become rich overnight, or become penniless.

I have seen many people who started out with an investment mentality and then slowly turned to gambling, causing a good family to be broken up.

Today I will share with you what money you should invest

You can take a look at the following picture [Standard & Poor's Household Asset Allocation Quadrant Chart]

The first account is for money to be spent, which generally accounts for 10% of the family's assets. We need to keep 3-6 months of living expenses. If you live in a big city, I suggest you keep more.

The second account is for life-saving money, which accounts for 20% of the family assets. This is specifically for dealing with sudden large expenses, such as illness.

The third account is for making money, which is usually used for investment and other high-risk activities.

The fourth account is for fixed income, which is relatively stable. Keep it in the bank, don’t expect to make money, and it accounts for 40% of your assets.

But this does not apply to everyone, because everyone's situation is different and needs to be taught in accordance with their aptitude. If everyone is the same, there is no need for financial analysts. This is just a reference.

The most important thing is that everyone's risk tolerance is different.

Example 1:

Assume Xiao Ming has 1 million yuan and Xiao Li has 10 million yuan. They both lose 80% at the same time.

Xiao Ming only has 200,000 yuan, and Xiao Li has 2,000,000 yuan. Xiao Li's money is still 10 times that of Xiao Ming.

Example 2:

Assume that Xiao's annual salary is 100,000 yuan and Xiao Li's annual salary is 500,000 yuan. They both invest in a project with a risk value of about 100,000 yuan.

For Xiao Li, it is just over 2 months' salary, but for Xiao Ming, it is a year's salary.

Example 3:

Suppose Xiao Ming is 20 years old and Xiao Li is 50 years old. Xiao Ming and Xiao Li both invest at the same time and lose 100%. Xiao Ming can turn things around at any time, but what about Xiao Li?

The above three examples show that people have different investment allocation ratios from the perspectives of income, wealth, and age, because they can bear different risks.

If it is different, how should I make investment allocation?

In fact, it is very simple. There are three elements to investing.

1. Security

2. Liquidity

3. Profitability

Here I suggest that you don’t play stocks, because retail investors rarely make money. In a market with very clear rules, it is difficult for you to make big money.

Under the rules, it is the people with resources who make money, and it is the dealer who makes money. The rules are set, and the rules are set by the people above. It is difficult to find loopholes.

Finance is something that is worth learning and is also very necessary.

Good financial learning will definitely enable everyone to achieve class transition;