Ways to manage family finances?

Generally speaking, a complete family financial management plan includes eight aspects:

1. Career plan. Choosing a career should first of all correctly evaluate one's own character, ability, hobbies and outlook on life, secondly, one should collect a lot of information about job opportunities, recruitment conditions, etc., and finally, one should determine the work goal and the plan to realize this goal.

2. Consumption and savings plan. You must decide how much of your income for the year will be spent on current consumption and how much on savings. The tasks associated with this plan are the preparation of a balance sheet, an annual income and expenditure statement and a budget statement.

3. Debt PlanWe must manage our debt so that it is kept at an appropriate level and the cost of debt is kept as low as possible.

4. Insurance plan. As your business becomes more successful and you own more and more fixed assets, you will need property insurance and personal credit insurance. For your children to live happily after you are gone, you need life insurance. More importantly, to cover illness and other unexpected injuries, you need health insurance, as hospitalization costs have the potential to wipe out your savings.

5. Investment plan. As our savings grow day by day, the most pressing need is to find an investment portfolio that offers a combination of yield, safety and liquidity.

6. Retirement planningRetirement planning mainly includes consumption and other needs after retirement and how to meet these needs without working. Social security alone is not enough, but must be supplemented by accumulating a retirement fund when you are able to work.

7. The main purpose of an estate plan is to minimize taxes when leaving property to heirs. The main elements are a proper will and a set of tax shelters, such as giving a portion of the property in advance as a gift to heirs.

8. Income tax planningIndividual income tax is the government's share of an individual's success, and on a legal basis, you can absolutely adjust your behavior to achieve legal tax avoidance