2025 Family Financial Plan

program

  1. The cash pool is always guaranteed to have RMB 50,000-100,000 to cover temporary large expenses at home.

    • Family insurance costs
    • pay rent
    • Sick parents
  2. As you age, in addition to investing in stocks, increase the proportion of bonds in your household’s assets (10% long term, 10% short term).

  3. Fixed investment in three market ETFs to reduce portfolio volatility.

  4. Don’t buy a house. In the next few decades, the population will continue to fall, and real estate may become a consumer good rather than an asset, so don’t think about buying a house. Spread your assets evenly among other financial assets such as stocks and bonds, and dynamically adjust their proportions every five years.

  5. Unemployment is the biggest financial risk and always be prepared for a harsh economic environment.

    • Explore a second career to pave the way for a career after 40.
    • The family prepares for 1 year of expenses. This matches Plan 1.

Don’t make the mistake again.

  • Mistake #1: I invested all my cash and then had a family emergency and had to borrow money from friends and parents.

  • Mistake #2: Spending too much time reading financial news, doing financial analysis of some companies, frequently checking stock account returns, and predicting economic trends.