Eight of two financial consumer spending plan

 

The maximization of individual financial objectives the primary purpose is not the individual value, but to make personal finances sound reasonable. In real life, reduce personal spending sometimes financial goals more easily than to seek higher investment return achieved. Therefore, consumer spending plan to arrange the consumption capital, establish a correct concept of consumption, save the cost, the household income and expenditure structure balance, to maintain the family financially sound.

We first briefly look at the family consumption patterns of the three main types of:

One is the excess of income over spending, consumption patterns. This model is the most ideal, the family not only to achieve the goal of financial security, but also a certain balance of funds available for investment, such as the right investment, the future investment income can cover the entire household consumption expenditure, can gain financial freedom.

Two, balance consumption patterns. The family consumption equal to income, not many balances available for investment, from the early hypothesis have certain investment, revenue has been growing, still need very long time to achieve financial freedom. If no initial investment, so this consumption mode is almost impossible to achieve financial freedom.

Three is greater than the consumption patterns, support. This pattern is not the most desirable, is typical of the "moonlight clan" "neet". As consumer spending has been greater than income, it would have to consume the family wealth accumulation, if things go on like this, the family will fall into the financial crisis.

Through the comparison of three modes, we must broaden sources of income and reduce expenditure, make oneself or the family became the first kind of consumption mode, so you have the financial resources to accomplish some other important financial planning, such as children education planning, retirement planning.

 

According to the US consumer market characteristics of society now, consumer spending needs planning is the main housing, cars and other consumer. Purchase and rental housing consumption, we focus on the purchase of housing consumption planning.

(a) Why housing consumption planning

In recent years, with a real estate prices, influence of family housing expenditure of family life, and even become a certain period of time the heavy economic burden, some people to become "the housing slave". Tremendous pressure owing on the loan seriously affects the living quality of the people, in order to avoid this problem, we need a financial planner to according to the different situations of customers to establish effective production planning, to prevent the occurrence of debt crisis.

 

(two) the purchase of financial decision

In the house before, we must first understand their financial situation, there is no economic ability to pay. Introduced several commonly used indicators for your reference:

1Estimation of the total housing, affordable to the savings and loan repayment capacity

Affordable payment = at the net assets in the final + purchase in the future when the present to the future in this period of time the annual income in the future purchase of the final * annual revenue can limit the burden proportion Shoufu

Affordable housing to purchase in the future = annual income for pension annuity * year income affordable loans ratio limit

Affordable housing price = affordable payment + affordable housing

Affordable housing unit = affordable housing price / plan to buy housing area

2Want to buy housing prices, according to calculated Shoufu and for the

Want to buy housing price = housing unit * area

The first part = need to pay to buy housing price * (1- mortgage loans into several ratio)

The monthly amortization loan interest expenses = need loans to pay part of the month as the unit of quasi annuity value

 

Note: the first payment also include the purchase of a one-time payment of other costs, such as parking fees, taxes, stamp duty, public repair gold. In addition such as decoration, furniture appliances acquisition costs also need to be considered.

Financial planners caution: according to empirical data display, loans to purchase the best prices at 6 times the annual income of the family, the term of the loan in the years 8-15. In this range, are also on the amount decreased rapidly, the pressure owing on the loan will be smaller, more reasonable family financial status. In addition to the two most important financial index:

(1) the ratio of housing mortgages and the after tax monthly income

Housing on the contribution ratio of after tax income borrowers generally should not exceed 25% to 30%.

(2) the ratio of all loans monthly and after tax monthly income

Housing mortgages and other loans for more than 10 months of monthly total after tax income ratio of the borrower should generally be controlled at 33% to 38%.

 

(three) loans and repayment options

1, the opening of China's commercial banks individual housing consumer credit are mainly housing provident fund loans, commercial loans and loan portfolios.

Personal housing accumulation fund loans: if you paid by the housing provident fund, can apply for to the provident fund management center, loan interest rates than commercial loans to low interest rates, however, during the loan, the interest rate is not fixed. For local conditions shall not, such as Suzhou now also can be used as major support costs to receive, so how to handle specific can consult local provident fund management center.

Individual commercial housing loans: also called the housing mortgage loans, commonly known as "mortgage". Not paid housing provident fund can apply for individual housing secured loan of commercial bank, conditions are relatively easy, relatively high interest rates, the longest period not exceeding 30 years. The banks are lending, but specific rules, including interest rate are also different. Handling, need to apply for bank details.

Individual housing loan portfolio: Provident Fund loans are the highest limit, if the purchase of more than this limit, the insufficient part to commercial loans to banks for housing. These two kinds of loans together called the loan portfolio.

 

2, the choice of repayment methods. Banks now offer repayment, a matching service law, matching incremental method, matching reduced method, matching the principal law etc..

Matching principal repayment law refers to the loan period, monthly repayment of the loan principal and interest, the monthly repayment of principal of equal, unequal. This method is suitable for the higher income but expected future income will reduce populations, such as pre retirees, or early repayment repayment capability, and hope in the repayment period to reduce interest payments are large sums of money to the borrower.

Matching interest repayment law refers to the monthly repayment method in the loan period equal to the amount of the average repayment of principal and interest of the loan. This is a most common way of repayment, the repayment of the operation is relatively simple, matching the monthly mortgage payment is also convenient to arrange monthly payments lender. For a stable income families, such as civil servants, teachers, etc..

Matching incremental repayment law refers to the repayment period is divided into a number of times, each time periods also on the same amount, the next time the amount was increased by a fixed amount. Currently applicable to the general income, repayment ability, but the expected future income will gradually increase in population. As a graduate student, the income is not high, young people can consider this method.

Matching reduced repayment method refers to the repayment period is divided into a number of times, each time periods also on the same amount, the next time the amount was reduced by a fixed amount. Currently applicable to the repayment ability, but the expected revenue, or the economy very well-off people, such as middle-aged or single white-collar workers.

 

People ask what kind of interest at least it often? Financial planners answer is from the bank's point of view "the same", because no matter which way you are borrowing, bank funds and take time to decide. The reason that "what interest problem" because of how much you the monthly repayment of the remaining principal of the remaining period of the same happened in the interest of "more" and "little". Monthly principal has more, interest will be less, the monthly principal had little interest, there will be more. So we should not rigidly adhere to the interest of many problems, first of all is to choose their own conditions of repayment, then in the repayment period, according to their family financial condition, strive for early owing on the loan, multi owing on the loan, as long as you use bank funds to shorten the time, reduce the amount of the interest, you will naturally reduce. To advance repayment, as is the loan portfolio, first proposed has higher interest rates of commercial loans, has low interest loan fund. As long as the financial health, if there is more than a sound investment varieties of loan interest rates, there is no need to rush to owing on the loan.

 

(four) other consumer spending plan

Personal auto loan is the bank to buy a car for the borrower RMB loans secured. The loan can only be used to purchase by the lender recognised dealers selling brands designated domestic automobile. The lender, the borrower, car dealers, insurance and the guarantor should be in the same city, loans may not be remote release. General loan period of 3 years, interest rate of loans in accordance with the provisions of the people's Bank of China period rates.

In addition, some bank credit cards and designated distributors, can adopt installment payment buy, according to stage duration, has zero interest zero fee, zero interest rates but also need to pay fees. But the car insurance is generally bound and designated insurance sales. When you buy a car can look at the detailed information of each bank.

Personal consumer loans, consumer loans activities is resistant to the bank to the borrower for designated consumption use RMB loans secured. Applications such as, study abroad, housing decoration, large consumer durable goods etc..

 

Financial planners caution: everyone in the program the largest consumer spending, must assess your financial situation, as already have the economic strength and with the consumption of funds, according to the expected consumption time to do financing arrangements, such as one year will happen, so this part of the funds can not be to invest in long-term investment tools, such as funds, stocks, long-term deposits, only short-term deposits or buy monetary fund, such as 3-5 years plans to use, it can buy some bonds or bond funds, 3 years, 5 year time deposit, such as the purchase of their children to study abroad, some rigid spending money, never suggested that investment stock type or stock funds; if still do not have the economic strength or the gap there, it would have to leave after the balance delay plans or in spending, according to the plan to use the time to choose suitable investment tools corresponding to cumulative capital. In short, for consumer spending plan must be careful not to make their own family debt ratio is too high, so as not to cause serious debt crisis, the accumulation is to choose the appropriate investment tool for short-term investment.