The law of 432 1 is that for families with higher income, their reasonable share of expenditure is: 40% of income is used for buying a house or P2P investment; 30% for family living expenses; 20% is used for bank deposits in emergencies; 10% is used for security.

2, Murphy's law-a correct understanding of investment and financial management

The main content of Murphy's law is: if things are likely to go bad, no matter how small the possibility is, it will always happen. This law seems to have nothing to do with financial management, but after careful study, it can be seen as a warning to novice investors.

For example, according to Murphy's law, if you are in a hurry to catch the plane, you may miss it, so you will definitely miss it in the end. So in order to have enough time to catch the plane, you can go out as soon as possible without the possibility of missing it. It is not difficult to see that this law will make people feel a sense of crisis about possible problems and take measures to avoid them.

3. Rule 72- Reasonable Calculation of Securities Investment

Interest is calculated with 1% compound interest. After 72 years, the principal doubled. This rule is called the 72 rule. This law embodies the result of compound interest. The relationship between principal doubling time and yield can be obtained by calculation. The higher the rate of return, the shorter the time for assets to double.