0 1. According to our own actual situation, the income will be distributed in proportion. There are two ways to get our salary every month, save it or spend it. But the reality is that it is difficult for us to save all our wages and incomes, because we must have expenses to survive. These expenses are "necessary expenses", such as rent, water, electricity and coal, meals and so on. Therefore, we should distribute the income in proportion and classify the expenses in proportion according to our specific actual situation. Proportional distribution of income can follow the "63 1 principle", that is, 60% of income is used as living expenses for necessary expenses, 30% as other expenses, such as entertainment and self-improvement, and the remaining 10% is used as emergency reserve for compulsory savings. After deducting the necessary expenses from the monthly income, we can flexibly control the remaining money, which is about 30%-40%. Even if you want to save more money and reduce the necessary living expenses, your plan will be broken again and again for a long time, and eventually you will give up the whole financial planning, because unreasonable distribution ratio will make people flinch, so the sustainable distribution ratio of savings income must be tailored according to your actual situation! The amount in the chart is NT$, and the exchange rate is about 1: 5. For example, Kobayashi's monthly income is NT$ 3.5W Ideally, he will save NT$ 3 yuan and his living expenses will only be NT$ 5 yuan. If you are a student, you can barely do it, but for wage earners who have left society, it is impossible. Because in addition to living expenses, there are also expenses such as rent, water and electricity, sending money home, and loan social security. In the end, I can only save NT$ 9. You may think, "Why do you save less after adjusting your income distribution?" From the original deposit of NT$ 3 per month to NT$ 9 per month now, there is a total loss of NT$ 2.1w.. Although the efficiency of saving money every month is reduced, the actual expenses still have to be paid. If you still spend only NT$ 5 a month on living expenses, it is estimated that you have to eat steamed bread every day to survive. Therefore, we should allocate our income in proportion according to our specific actual situation, so as to be effective and sustainable. Moreover, a reasonable income distribution is to control your own consumption and let yourself find a balance point in saving money and quality of life, rather than tightening your pants. 02. Follow the consumption pyramid and classify expenses by category. After receiving the income every month, we should also classify the expenses in all aspects of life reasonably. Because wage earners basically only get paid once a month, it is necessary to classify expenses reasonably to avoid the rhythm of spending money lavishly at the beginning of the month and eating soil at the end of the month. As for the cost of living, let's first understand a "consumption pyramid" model. The key of "consumption pyramid" mode lies in "spending on what you really need first, then buying what you want". Our monthly expenditure can be roughly divided into "fixed expenditure" and "variable expenditure". "Fixed expenditure" refers to the expenses we have to pay every month whether you have money or not, such as rent, water, electricity, coal, meals, mortgage and so on. When we classify this part of "fixed expenditure", we will directly divide it into major items and separate it from other expenditures. "Variable expenses" are other expenses in daily life, such as shopping, reading and further education courses. How much this part of the "variable cost" costs depends on our own adjustment. If there are large expenses this month, such as going to travel or buying a laptop, you should first eliminate this part of the expenses and then freely control the rest. Following the example of Kobayashi mentioned above, the living expenses are divided into NT$1w. From what I have just said, we will find that consumption must be spent on survival first, and the remaining quota can meet other needs. Following the consumption pyramid and classifying expenditures by categories means that we can achieve a balance between "fixed expenditures" and "variable expenditures" and between needs and wants, and the monthly consumption quota should be kept in a dynamic balance. 03. Control of Unknown Risks Because wage earners basically only get paid once a month, we have to spend "fixed expenses" every month. If we spend all our living expenses at the beginning of the month, we must scrimp and save them until next month's payday or the remaining month in borrow money to spend. Now the global environment is depressed, the company cuts salaries and layoffs, suddenly falls ill, and accidents happen from time to time. If you are a person who has no habit of saving money, you spend your monthly income on consumption. Even if you need money badly one day, no matter how high your salary is, you won't have money until payday. At present, you still have no money to pay. In order to cope with and solve this unknown risk in the future, an "emergency reserve fund" must be deposited in advance. Take 10% of monthly income as "emergency reserve fund" for compulsory savings. The biggest purpose of saving money is not to spend more money on shopping, but to reduce those unknown risks in the future. "Emergency reserve fund" is the money you can use to turn around when you suddenly need money! Let your life continue to run without the influence of money, and this money is at least 3-6 months of living expenses, so don't use it for consumption at ordinary times.