Chapter 6: The Month-End Spender
“This generation of internet users is so capable!” Zhao Qianqian sighed while downloading the form to fill it out.
After carefully reviewing the form, she saw that the left side listed “Assets” and the right side listed “Liabilities.”
The assets were divided into cash assets, financial assets, and physical assets.
Cash assets were further categorized into “Cash,” “Checking deposits,” “Time deposits,” “Bank wealth management,” “Money market funds,” and “Receivables.”
Financial assets were divided into “Stocks,” “Funds,” “Bonds,” “Futures,” “Insurance,” “Public housing funds,” and “P2P.”
Physical assets were split into “Primary residence,” “Investment properties,” “Cars,” “Gold,” “Jewelry,” “Collectibles,” and “Others.”
As she looked at the form, Zhao Qianqian couldn’t help but silently shed tears for her financial poverty.
Yun Luo guided the host in filling out the form, “Fill in the cash, insurance, and public housing fund sections. That should be enough.”
Zhao Qianqian picked up the pen but hesitated. “I don’t know how much is in my medical insurance card or public housing fund.”
Yun Luo replied, “Open the Human Resources and Social Security Bureau, and the online housing fund service portal. You can check the data there.”
Following the advice, Zhao Qianqian opened the websites, entered her ID number as the username, and found that the user existed, but the password was incorrect.
She looked toward the omnipotent system with a helpless expression.
Yun Luo said, “Click on ‘Forgot password’ to reset it.”
Zhao Qianqian followed the instructions.
After struggling for more than ten minutes, she finally logged in successfully.
Checking the balance of her medical insurance card, Zhao Qianqian was surprised to find nearly three thousand RMB.
Yun Luo informed her, “The medical insurance card can be used to pay for outpatient services, as well as to purchase medicine and medical equipment at designated pharmacies.”
“Commercial insurance and accident insurance can also be paid with the card.”
“In some regions with more relaxed policies, you can even use the card at fitness centers.”
Zhao Qianqian was astonished.
She carefully filled in the numbers in the assets and liabilities table, then checked her public housing fund balance, which was 16,000 RMB.
What does it mean to have treasure but not realize it? This was it.
Thinking back to the embarrassed state she was in just a few days ago, Zhao Qianqian couldn’t help but cover her face—those past moments were too hard to bear!
Yun Luo explained, “Most people think the public housing fund can only be used for a home loan. In fact, the current policies are quite user-friendly.”
“The housing provident fund can be used for purchasing, constructing, renovating, or major repairs of a home, as well as for renting a house.”
“If the employee paying into the housing provident fund is eligible for low-income assistance or special hardship assistance, they can also withdraw the housing provident fund. If funds are needed for treating a major illness, the housing provident fund can also be withdrawn.”
As she spoke, she glanced at the host, “Your mother qualifies for withdrawal due to treatment of a major illness.”
At this point, Zhao Qianqian deeply understood the necessity of learning personal finance. If you don’t understand or know how to manage your money, even if you have it, you don’t know how to use it. You end up missing out on benefits you could be enjoying.
After recording the details for “Cash,” “Insurance,” and “Housing Provident Fund,” she hesitantly asked, “I have quite a few unused backpacks, dresses, and skincare products. Can I list them under the ‘Other’ category in physical assets?”
Yun Luo looked at the host but didn’t say a word.
“My assets are so little, it looks so pitiful…” Zhao Qianqian’s voice got lower the more she spoke.
Yun Luo replied, “I’ve never heard of those things being counted as physical assets.”
Zhao Qianqian’s face turned red, and she bit her lip, not daring to speak.
“However,” Yun Luo’s tone shifted, “You can sell them in the second-hand market, and that money could be considered part of your cash assets.”
Zhao Qianqian’s eyes lit up. “Can I sell them?!! A lot of them are new, I hardly used them!”
Yun Luo reminded her, “Skincare products have an expiration date. Are you sure they’re still within the valid period?”
Zhao Qianqian’s lips moved, but she couldn’t even manage a guarantee. In fact, she couldn’t remember when she bought most of the items.
Yun Luo said, “You don’t have any liabilities, so you don’t need to fill in the liabilities section. Just calculate your current assets, complete the form, mark the date, and save it.”
“Then…” She glanced at the host, her expression complex. “Tidy up your wardrobe and organize all the unnecessary items.”
“Got it!” Zhao Qianqian quickly agreed.
Cash, insurance, housing provident fund—her total assets amounted to 19,000 yuan at most.
Zhao Qianqian’s eyes filled with tears. “Thank you to the company for paying the social insurance, helping employees save money!”
Yun Luo turned away, clearly unable to watch.
She marked the date, saved the form, and then Zhao Qianqian stood up, rummaging through cabinets and drawers to find unused items.
She was shocked when she started organizing.
Zhao Qianqian suddenly realized how many things she had bought and hardly used!
Every time Shen Nianzhi said, “This cream has great reviews,” “This dress is so beautiful,” or “This bag is the latest trend,” she would obsessively join in on the group buy.
In the end, she didn’t really use most of the things she bought, they mostly sat idle.
Some skincare products were casually placed on shelves, and she would forget about them, only to realize later that they had expired.
Looking at the pile of scattered items she had dug up, Zhao Qianqian felt a sharp pang in her heart—this was all money!
Yun Luo spoke up at the right moment, “Let this be a lesson. Don’t make the same mistake twice.”
Zhao Qianqian gave a bitter smile. “One lesson is enough.”
She categorized and organized the items, throwing away the expired ones, keeping the frequently used ones, and putting the rest on the second-hand market for sale at 20% or 30% of the original price.
By the time she finished, it was already 22:45.
It was nearly bedtime, but Zhao Qianqian didn’t rush to bed. Instead, she took out her notebook, her eyes filled with anticipation. “I’ve read several articles and have some questions I want to ask you.”
Yun Luo knew that the host was genuinely eager to improve.
At lunch today, while eating, she had been browsing the web on her phone, trying to make the most of every minute to read.
Since the host was eager to learn, she was willing to answer. “Go ahead and ask.”
Zhao Qianqian’s eyes lit up as she flipped open her notebook and found the notes she had made earlier. “The first question: why do some financial rules suggest that 40% of family income should go to the mortgage and other investments, while others recommend that mortgage payments not exceed one-third of the income?”
Yun Luo replied, “First, you need to understand one principle: the less debt you have, the easier life becomes.”
Zhao Qianqian thought for a moment and nodded. “That makes sense.”
Seeing that the host understood, Yun Luo continued, “Secondly, everyone’s income is different. The rules give general percentages, but they don’t apply to everyone.”
Zhao Qianqian’s eyes showed a flash of realization. “For example, if my monthly salary is 4,000-5,000, then 30% would be 1,200-1,500. My mom’s pension is 2,000-3,000, so 40% is 800-1,200. The percentage is higher, but the actual amount is lower.”
Yun Luo nodded. “So, general financial advice can be used as a reference, but for individuals, it needs to be adjusted according to their specific situation.”
“No wonder!” Zhao Qianqian suddenly understood. “Even with the same three-part budget method, some people divide their salary into three parts: one for rent, one for living expenses, and one for savings. Others divide it into one for living expenses, one for savings, and one for a dream fund to fulfill their goals by the end of the year.”
Yun Luo said, “Living at home without rent is already a way of saving money compared to others.”
“I get it now,” Zhao Qianqian checked off the first question, then moved on to the second. “There’s a saving technique called ’12-month fixed deposit savings.’“
“The method is to set aside 20% or 30% of your monthly salary into a fixed deposit. After twelve months, each month you will have a fixed deposit maturing.”
“What I want to know is, isn’t it more convenient to put the money into a money market fund? Why specifically choose a fixed deposit?”
Yun Luo explained, “Money market funds have only become popular in recent years. People didn’t know about them before.”
Zhao Qianqian was speechless.
The answer was so simple? It was beyond her expectations.
Yun Luo continued, “A money market fund offers the liquidity of a regular savings account and the high returns of a fixed deposit.”
“Under normal circumstances, it’s safe, flexible, and offers stable returns.”
“Although the fund agreement does not guarantee the safety of the principal, in reality, due to the nature of the fund, money market funds rarely experience principal loss and are generally considered cash equivalents.”
Zhao Qianqian confirmed with the system, “So, using a money market fund as a substitute for cash is perfectly fine?”
Yun Luo: “Yes.”
“Then let’s keep up with the times and forget about the 12-month fixed deposit savings,” Zhao Qianqian muttered as she considered crossing it out in her notes.
“12-month fixed deposit savings still has its merits,” Yun Luo suddenly spoke up.
Zhao Qianqian: “For example?”
Yun Luo: “Some people can’t control their spending habits and are eager to consume. If they put their money into a money market fund, they still can’t resist spending it. But if they save it in a fixed deposit, few will take the money out.”
“Because early withdrawal from a fixed deposit will result in interest calculated at the regular savings rate.”
“In order to avoid losing interest, holders are forced to resist, curbing their desire to shop.”
“I see,” Zhao Qianqian immediately understood.
Yun Luo asked, “Any other questions?”
Zhao Qianqian held up her notebook, “Not for now.”
Yun Luo: “Turn off the lights, go to sleep. Get up early tomorrow and continue to maintain a good routine.”
“Understood!” Zhao Qianqian obediently replied. She climbed into bed and quickly fell asleep.
—
After deciding to learn about finance, her life visibly improved.
Her mother, after the surgery, didn’t rush to discharge herself to save money but instead took her time to rest and recover.
Every day after work, Zhao Qianqian would visit her mother at the hospital, then go home to read and study finance.
Since she wasn’t going out or shopping, her expenses had noticeably decreased. Apart from food and transportation costs, there were no other expenditures.
What surprised her most was that the skincare products, dresses, and bags she had sold had brought in enough money to add 10,000 yuan to her bank account!
She couldn’t help but think, “How much money did I waste in the past…?”
But she was also relieved, glad that she had sold the items in time to recoup some of the costs.
After the money from the sales came through, Zhao Qianqian deposited it into a money market fund. Every morning, the first thing she did was check her account balance.
Seeing the small gains in interest, she felt overjoyed—she was getting up faster in the mornings than before!
In addition—
At lunch, Zhao Qianqian held a piece of bread in her left hand and her phone in her right, eating while looking at her screen.
Her colleague was surprised and asked, “Aren’t you ordering takeout?”
Zhao Qianqian replied seriously, “Takeout is too expensive. Bread is more cost-effective. I bought this on the way home from work last night—buy one, get one free. Such a great deal!”
Her colleague looked at her several times, almost as if she didn’t recognize her, and said, “Aren’t you always the type to spend money freely? Now you’re saying takeout is too expensive, and bread is cheaper, so you’re switching to bread?”
Zhao Qianqian sighed and answered with a quote she had recently learned from the world of finance, “I was young then, not knowing that every gift fate gives us has already been priced in secret.”
Her colleague felt strangely reassured.
In the past, Zhao Qianqian had spent money like flowing water, almost prideful of living paycheck to paycheck. Now, seeing that this young woman genuinely wanted to change, her colleague gave a few words of advice: “After graduation, the first two years are easier. But after that, with dating, marriage, raising kids, and supporting your parents, there are too many places to spend money! If you don’t save, where will the money come from? We’re ordinary people, no rich relatives, we can only rely on ourselves.”
“Exactly!” Zhao Qianqian thought deeply, regretting that she had woken up too late.
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Reader’s Finance Knowledge A:
For out-of-province medical treatments, you can directly claim reimbursement at the local hospital after handling the procedures for out-of-area medical care. For major illnesses like leukemia, even without commercial insurance but with basic medical insurance, after paying at a hospital in another province, you can take the payment receipt back to your local medical insurance office and claim a certain proportion.
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Reader’s Finance Knowledge B:
Medical insurance generally has a deductible (this means that expenses within this range are not covered, for example, if the deductible is 10,000 yuan, and you spend 9,000, it won’t be covered, but expenses over 10,000 yuan will start to be covered). However, if you don’t need to make a claim because you’re healthy, the money you paid will not be refunded. Additionally, it’s cheaper when you’re younger, but the cost increases as you get older.
Commercial insurance is supplementary to basic medical insurance, so basic medical insurance is a must, and commercial insurance should be appropriately configured within your affordability.
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Reader’s Finance Knowledge C:
Reimbursement for medical insurance depends on where you are insured, and the final reimbursement ratio is determined by various factors such as whether it is within the jurisdiction, whether it’s within the city or province, and whether there is a referral involved.
For example, if you are reimbursing at a primary health center in a community or township, the reimbursement ratio will be the highest. If you are outside the city or province without a referral, the reimbursement ratio will be the lowest.
At the same time, employee medical insurance differs from urban-rural medical insurance. However, there is no need to worry, as families in difficulty who pay for urban-rural medical insurance can still use the remaining portion after reimbursement for major illness insurance and medical assistance.
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Reader’s Finance Knowledge D:
According to China’s insurance law, if you continuously buy life insurance, and commit suicide after 2 years, it is eligible for compensation. (Only applicable to long-term life insurance)
Legal scholars say that on one hand, suicide after two years shows that life has become unbearable, so compensation is provided.
On the other hand, after two years, most people’s difficulties are not as urgent, and most people will not contemplate suicide.