The website Health Network (http://www.jiankangxinxi.com/) focuses on the health issues around the citizens. Not only can the body experience "sub-health," but wealth can also fall into a state of "sub-health." Recently, China Merchants Bank released a report on the sub-health of urban residents' wealth in 2009. The report shows that many residents in the country have personal and family finances in a "sub-health" condition, and many people still do not know how to consume with debt.
Reporters found that many citizens in Nanchang are also trapped in "wealth sub-health." In response to this situation, the reporter invited Xiong Yongchun, the supervisor of the wealth management team at the Jiangxi Branch of Bank of China and an international financial planner, to diagnose the problem and offer solutions.
Case ①
Monthly loan repayment and always in debt on credit cards
Mr. Yang's family is a typical "moonlight clan." They are paying off loans for their house and car, yet they are still avid consumers of high-end electronic products. They have changed their high-spec laptops twice, own four or five MP4 players of different brands, and almost replace their phones every six months. As a result, they are constantly swiping their credit cards. Although their monthly income is about 6,000 yuan, their credit card balance is always negative, and they are continuously repaying loans.
"The consumption loan for the Apple MP4 has just been paid off, and last month each of us bought a phone online, spending nearly 8,000 yuan, which we paid in six installments," Mr. Yang said. Monthly expenses have increased by more than 1,000 yuan, and now they even try to drive less.
■ Symptoms
Burdened with multiple loans such as mortgages and car loans, and having a relatively advanced consumption mindset, living today on tomorrow's money. The proportion of monthly surplus is below 10%, basically making them part of the "moonlight clan."
■ Prescription
It is suggested to first review historical expenditures and determine necessary household expenses. Develop a habit of keeping accounts and reduce unnecessary expenses beyond necessary expenditures. Appropriately control consumption and force oneself to save. It is recommended that these individuals set aside 10% of their monthly salary for fixed-term savings or regular investment in funds.
Case ②
No awareness of wealth management, all money is kept as current deposits
"I've been working for six years, and my colleagues are all buying stocks and funds, but I never consider it," said Ms. Huang, who works in the media. The newspaper deposits her salary into her bank card, while bonuses are given in cash. She uses the bonus for daily consumption, and this has been her routine for years.
"At the beginning of this year, I started regularly withdrawing my salary based on a colleague's suggestion and opened a zero-coupon whole savings account," Ms. Huang said. Purchasing stocks and funds carries investment risks, and since she is not good at managing them, she feels it is safer to deposit money in the bank. However, she hasn't thought about how to make her money grow.
■ Symptoms
Income from a single source group, with the main income coming from wages. When work is stable, it won't be affected, but once a special situation arises, if the income is interrupted, the family might fall into a state of financial paralysis.
■ Prescription
It is suggested to learn more about wealth management knowledge. Besides saving, one can also invest in wealth management products. The investment portfolio should be diversified to deal with various unexpected expenses.