We've discussed investment and financial management for many sessions, and from the feedback and comments, it's clear that many friends are still very interested in financial management. So today, to help everyone better grasp and understand, I've summarized a session of practical knowledge, which is the "Five Major Laws" of investment and financial management.

These five major laws are really practical and widely circulated online. It is said that they were summarized by an expert. Today, I will simply sort out and summarize these 5 major laws and share them with you, hoping they will be helpful to everyone.

The First Law: The 4321 Law

This sounds like the formation in a football match, but it has nothing to do with football. What it talks about is the allocation of assets in family financial management. The specific allocation ratio is to use 40% of the family's income for mortgages, car loans, and other investments; 30% for normal family expenses; 20% for bank deposits, financial management, etc., to prepare for family emergencies; and 10% for purchasing insurance to ensure protection against future uncertainties.

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Of course, this ratio is not necessarily fixed and can be reasonably adjusted according to one's actual situation.

The Second Law: The 72 Law

This is even more interesting. It involves dividing 72 by the annual return rate of your investment product to find out how long it will take for your principal to double. For example, if you have 1 million yuan and purchase a large-denomination deposit certificate with an annual return rate of 4%, with interest compounding annually, then 72/4=18. According to this law, in 18 years, you can get 2 million yuan. Isn't that interesting?

This rule tells us that investment should be persistent. As long as the time is long enough, it is possible for the principal to double.The Third Law: The 80 Rule

This one is related to stocks, so friends who don't trade stocks can skip ahead to the fourth law now.

The rule states that the appropriate proportion of stocks in your total assets is equal to 80 minus your current age, followed by a percentage sign.

What does this mean?

If you are 40 years old, for example, 80 minus 40 equals 40, and with the percentage sign, it's 40%.

This 40% is the maximum proportion of your assets that should be allocated to stock trading, which means as you age, the proportion of stock trading should gradually decrease.

I personally believe that this law has no basis in real life, so take it as a bit of fun.

The Fourth Law: The Mortgage Rule of Three

(The rest of the text is not provided, so the translation ends here.)This is the most straightforward one: the monthly mortgage payment should not exceed one-third of your family's monthly total income. If it does, it will affect your normal life.

The Fifth Major Law: The Family Insurance Double Ten Law

This is also quite important. It means that the payout amount of the insurance you purchase should be more than 10 times your family's income to better protect our family. The other "10" refers to the fact that the funds for purchasing insurance should not exceed 10% of the family's annual income.

The above are the 5 major laws we discussed today. For many years, these 5 laws have been widely circulated in the field of investment and finance and have been recognized by many people. It is said that they are the result of in-depth research by many experts and scholars.

However, I personally believe that when learning about investment and finance, it is necessary to learn these laws, plans, principles, and other knowledge. Mastering the necessary knowledge will be of some help to our future investment and finance.

But also, do not blindly imitate and copy. Everyone's asset situation is different, family income, liabilities, future plans, etc., are all different. When actually implementing, it is still better to combine one's own actual situation and flexibly grasp it.

So, what do you think of these 5 financial laws? Are they suitable for your actual situation?

Welcome everyone to leave a message and interact.Alright, that concludes the content of this episode. If you feel that what I've said makes a bit of sense, please give a long press on the like button to strongly recommend it. Thank you for your support and recognition.