Sort the tips into three

  • Let’s classify money according to usage
  • How to manage it concretely?
  • Let’s see the simulation

First of all, I would like to write about the money management method I recommend. There are other methods, so please read them after understanding that point.


 Before you start investing, classify your financial assets by use.

 Specifically, it is classified into the following three categories.

  1. Money to use immediately
  2. Money not to be used immediately (However, in some cases, money that may be used immediately)
  3. Money not to be used for the time being

 It is easier to understand if you explain in a specific case, so I will give an example.

For example, suppose you have a bank deposit of 3 million yen and you save 20,000 yen every month + 240,000 yen at the time of bonus.

  • The “money to use immediately” in above is money that needs to be used as cash at any time. First, consider the amount of money that you expect to spend in the next six months.
  • “Money not used immediately” (however, money that may be used immediately in some cases) is money that can be tolerated even if the principal is slightly broken after investing, but must be cashed immediately.
  • Money that will not be spent for a long period of 10 years or more. In other words, it is money that can be invested for a long period of time and can be used for investment in preparation for the future.


 From here, I will explain the specific operation method.

 The “money to be used immediately” in First is a bank deposit. Bank deposits are safe assets and are the most likely financial products that can be withdrawn freely without breaking the principal at any time.

 Next is Second “money not used immediately” (however, money that may be used immediately in some cases), but this money is a waste of money if it is managed with a bank deposit with an interest rate of almost zero. This is because it is good money that can be cashed when needed, not money that should not take the risk of losing principal.

 In any case, you should take risks and aim for higher returns than bank deposits. However, in case of emergency, it is money that is used in cash, so it is not good to make an investment that greatly reduces the principal at the beginning. Therefore, in this case, we recommend investing in a “balanced financial product” that mixes risky assets and safe assets. (* Balanced financial products will be explained from the next time onwards.)

 As a way of investing, we recommend that you invest 20,000 yen each month instead of investing a large amount in a lump sum. We will gradually shift from bank deposits to investment products.

 Finally, (3) “money that will not be spent for a long period of 10 years or more”. This money is not used for a long period of time, so it is suitable for making an investment that actively takes risks and aims for high returns. Specifically, we recommend that you invest 20,000 yen every month without hedging risky assets, especially developed country stocks.

 As I have written many times before, if you want to make a funded investment in stocks or investment trusts, you buy a lot when the price is low and a small quantity when the price is high, so the average purchase unit price is the market price. It is suppressed against the above, and the probability of getting a positive return is high. We have plenty of time, ignore any temporary price fluctuations, and continue to invest in reserves.

 If you want to make a long-term funded investment, you should invest in high-risk, high-return risky assets that take the risk. However, the prices of stocks in emerging countries have fallen tremendously in the past when a major economic crisis occurred, so even if you make a funded investment, you cannot bear it mentally and there is a risk that you will sell it on the way. Therefore, we will invest in developed country stocks. Regarding foreign exchange, if you invest in developed country stocks, you will take the risk of price fluctuations in developed country currencies centered on the US dollar and euro, but it is possible that a plunge like emerging country currencies will occur. Because it is difficult, we invest without currency hedging.

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