In this life, each stage has things to do and distances that can be calculated.
This section is the first decision: where to put the money
It's not about "buy or not buy," but "how should my money and my ability be divided."
Verification Signals (count two or more to be valid):
· All assets are invested in real estate (>80%)
· No emergency fund or <3 months
· Income depends entirely on a single source
Definition of Assets
From this stage, assets are divided into two categories and should be managed separately:
① Ability Assets——Your skills, judgment, relationships. It determines how long you can still earn
② Capital Assets——House, stock, cash. It determines whether you can live without working
Most people only do ② and ignore ①——resulting in money, but no ability, panic at 40 years old.
A healthy structure is: ability continuously generates cash flow, capital continuously accumulates, two legs walking.
Have a house and extra margin
Not afraid of unemployment
Assets can be realized
Definition
Real estate ratio · Monthly payment income ratio · Non-wage income ratio
How to calculate
Real estate ÷ Total assets; Monthly payment ÷ Monthly income; Side business ÷ Total income
Healthy range
Real estate ≤60% · Monthly payment ≤35% · Non-wage ≥10%
Putting all the money into real estate —— Looks rich, actually fragile
Only investing in yourself, not in your ability —— Ability depreciation is faster than asset depreciation
Using emergency funds to pay the down payment —— Once unemployed, it will default
Monthly payment accounts for half of income —— Quality of life collapses
Think that houses only rise —— Any asset has a cycle
Calculate three numbers: real estate ratio, monthly payment income ratio, non-wage income ratio
Real estate ≤60%, monthly payment ≤35%, emergency fund ≥6 months
Take a part of the money every year to invest in "ability" (learning/tools/relationships)
Establish a second source of income, even if it is small
Two legs walking together: ability generates money, money generates money
This page does not collect any of your asset information. All indicators are proportions and multiples, you can calculate them in your mind, no need to input, will not be uploaded.