Today, if you put down your work, will you have other income?
2024-05-07
163 CommentsRecently, a term has become quite popular, called "side hustle necessity." Some people jokingly say that you never know how many times your colleague's side hustle income is compared to their salary. Of course, this does not mean that everyone needs to engage in a side hustle, but having a Plan B will at least prevent us from being caught off guard in difficult times.
Just like the "soul three questions" that have gone viral in social circles:
1. If you let go of your current job, do you have any other sources of income?
2. If you or a family member falls seriously ill, do you have extra money on hand for emergencies?
3. If the product you invested in plummets in value, can you afford the loss?
As the pillar of a family with elderly above and children below, do you have a Plan B for your sources of income?
The director remembers a news story on Weibo about a mother from Nanchang who physically punished her child in public for losing a 5-yuan subway ticket. Initially, some people sympathized with the child, but when the mother tearfully revealed that she only earned 900 yuan per month, everyone fell silent.
Advertisement
The collapse of adults often occurs over seemingly trivial matters.
For this mother, a 900-yuan income might barely cover three meals a day; what she needs more is to seek additional sources of income, rather than just feeling heartbroken and silently enduring it.I also have another friend who took out a loan early to buy a house, hoping to rely on the house for retirement. However, a serious illness in the family forced him to sell the house that he hadn't even had time to get used to. One person's income is just enough to support the family and has no way to bear any risks; the other person has all their funds tied up in the house, and a serious illness has brought them back to square one.
We always say that the root of all problems is the lack of money, but how can we have more income?
There are many sources of income, such as taking on an additional job or starting one's own Taobao store, but these all require us to invest a considerable amount of time and energy.
In reality, those who can truly be free from the burden of money are those who have a Plan B, understand investment and financial management, and can make "money beget money."
Making "money beget money" is not just about investing all our money in the stock market and buying stocks.
True investment is about asset allocation. The father of global asset allocation, Gary Brinson, once said, "90% of investment returns come from successful asset allocation."
What is asset allocation?
To put it simply, it is the act of allocating the money in hand for different goals with different investment products, which is also known as an investment strategy.
For example, you could allocate 40% of your income to investment and wealth growth, such as buying a house, stocks, funds, bonds, etc.;
30% of the money could be used for family living expenses to ensure basic living needs;20% of income is allocated to money market funds or bank deposits for emergency fund reserves;
10% of income is used for insurance planning to transfer family risks.
This investment strategy is known as the 4321 rule. Of course, there are many other common investment strategies, such as the Standard & Poor's family asset allocation strategy, the Merrill Lynch investment clock strategy, as well as asset allocation rules like the 72 rule, the 80 rule, and the double 10 rule.
Risk warning: Investing involves risks, fund investments should be approached with caution, this document does not constitute investment advice, and investors are responsible for the risks associated with their actions based on this information.
