The purpose of working is nothing for the money. Everything in life is closely associated with money. However, everyone has different money management. For me, my salary is usually divided into three parts. One is for taking of my parents, one is for savings and investment, and the other one is for the necessities of my life.
I contribute partial salary to take care of my parents. They don't have enough money to pay for living when they are in retirement. As their child, surely I should have to burden the responsibility of attending on them. That is not only for the filial piety but also thanks for the good upbringing. I do my best to meet their requirements and provide them with the best life quality. For example, we often go the restaurant for dinner after my work. In addition, I often buy some gift for celebrating festivals, such Chinese New Year, their birthday, Mother's Day and Father's Day. Then I have two accounts whose setting goals are for savings and investment. I think I might do asset allocation before retiring. It is divided into two parts, non-risky savings and risky investment. My savings account consists of my annuity, life insurance, and deposit. My insurance company takes away the money to pay my insurance policy from this account. I have paid on insurance for two years. In case, I encounter a sudden unexpected accident and cause death, my beneficiary would take the death benefit payments. Fortunately, if I am still alive after retirement, not only my labor insurance but also personal annuity will pay pensions to me regularly. In addition to risk avoidance, I have the other account for investing in stocks, fund and bonds. I often read business magazines to study stock trend and realize the financial market in my free time. I believe deeply that "Never put eggs in one basket." One I spread investment risk by constructing a portfolio that contains many different whose returns a relatively uncorrelated, risk levels can be reduced without a corresponding reduction in returns.
