Financial health means that the financial situation of an individual or family meets the general financial indicators.
1, liquidity ratio
Current ratio = current assets/monthly expenditure. Among them, liquid assets refer to assets that can be realized quickly and without loss when in urgent need, such as cash, demand deposits and money funds (all kinds of babies in the market, the most famous one is Yu 'ebao). This indicator mainly reflects the ability of finance to cope with daily expenses and emergencies. The answer is "How much money do you want to keep for backup". Generally speaking, the liquidity ratio is 3-6, that is, the expenses from March to June are fully prepared as working capital. If the monthly expenditure is 1000 yuan, then the reasonable monthly current assets should be 3000-6000 yuan. If the ratio is greater than 6, it means that there are too many idle funds, which is not conducive to the preservation and appreciation of funds. On the other hand, it also shows that the ability to manage idle funds needs to be improved. On the other hand, if the ratio is less than 3, it will easily lead to capital fracture and financial crisis. You know, once you encounter an emergency such as illness and hospitalization, too little spare money will have an immeasurable impact.
2. Consumption ratio
Consumption proportion = consumption expenditure/total monthly income after tax * 100%. This indicator mainly reflects whether the financial revenue and expenditure situation is reasonable, and the answer is "how much should I spend every month".
If the consumption ratio is too high, it shows that the saving ability is very poor, which is not conducive to long-term financial security. If the ratio reaches 1, it means that it has reached the status of "moonlight clan". In the case of high consumption ratio, by increasing income and saving expenses, the saved funds can be doubled. If it has been very economical, the consumption ratio is still high, perhaps the Engel coefficient is too high. In this case, it is urgent to expand wage income through efforts, and more energy should be put into the cause. If the ratio is too low, it means it is used for daily expenses. In one case, the proportion is low, but the absolute amount is not low. Life is often very rich and Engel's coefficient is very low. After all, people can't eat five bowls of rice at a time and change several clothes a day. Another situation is that the proportion is low and the absolute quantity is low, which will affect the quality of life and quality. However, in the initial stage of accumulating funds and increasing savings, it is also allowed to moderately reduce consumption and reduce the quality of life, but the ultimate goal of making money is to improve life, so it cannot last long. How much the specific proportion is appropriate depends on everyone's age and life stage. Generally speaking, young people are in the stage of getting married, buying a house and having children, so it is necessary to reduce the consumption ratio appropriately.
3. Debt service ratio
Debt service rate = total monthly loan repayment/total monthly after-tax income * 100%. This indicator mainly reflects whether the debt level is reasonable, and the question answered is "how much is the monthly repayment". This indicator is mainly aimed at investors who are ready to lend or have already lent. Of course, debt-free is light, and if the debt repayment ratio is 0, it means that financial freedom is relatively high. If the debt service ratio is close to or higher than 35%, plus the consumption ratio of 40%-60%, it is easy to face financial crisis. Now that house prices are high, the amount of loans is also rising. In the past,100000 and 200000 were too much, but now one or two million is too little, which leads to a high monthly repayment amount for many people, but the debt repayment ratio cannot exceed 50%, otherwise consumption will be extremely reduced, and once there is any trouble, finance will collapse.
4. Investment ratio
Investment ratio = net investment assets/net assets * 100%. Among them, net investment assets refer to assets that can directly generate interest except houses, such as government bonds, funds and stocks. Net assets refer to the balance of total assets (including real estate and deposits) minus total debts. This indicator reflects the level of investment ratio and answers the question of "how much to invest every month". Investment is a long-term behavior and habit aimed at improving the quality of life. Therefore, investment must first be based on rich investment. If the investment ratio is too low, it means that the saving capacity is insufficient, which is related to the previous three ratios. If the ratio is too high, the risk will increase. If there are too many high-risk investments in the investment sector, such as stocks, once problems occur, the impact on daily life will be greater. Therefore, we have always advocated that stock investment must be idle money, which can not be used up in three to five years.