Many people around me talk about the most after tea and dinner is that there is not enough money to spend, there is not enough money to buy a house, there is not enough money to change the car, there is not enough money to buy a bag, and even if you want to buy a dress, you will feel that there is not enough money. If a few people feel this way, but many people feel this way, it is a question worth exploring.
By exchanging ideas with different people about not spending enough money, I slowly found three wealth traps that ordinary people are most likely to fall into in their conversations, and many people will fall into these traps unconsciously, and the wealth will disappear and they can't afford to accumulate wealth that is enough to change their destiny.
The article is longer, first write the outline:
Poverty Trap One: Ordinary people work for money instead of letting money work for themselves
Poverty trap two: ordinary people save money, not assets
Poverty trap three: ordinary people consume in debt and overdraft the future
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Cognition determines the level, choice is greater than effort, independent thinking makes us not blindly follow or submit.
"Not only the top, only the truth" is the basic value of self-media people such as me.
Safeguarding the interests of ordinary people is the conscience of self-media people such as me.
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Chinese have been ashamed to talk about money in the past few thousand years, and many literati and inkers have used "treating money as dung" as a symbol of high moral integrity in their articles and poems. But in fact, only those who have enough wealth are qualified to regard money as dung, and those who worry about three meals a day are not qualified.
It is this cultural atmosphere that has led many ordinary people to know that they need money to change their fate, but they are not willing to put down their faces and bend down to earn money. Until after the reform and opening up, more and more people realized the importance of wealth and began to make money desperately, and in today's society, few people regard making money as a moral defect.
Most of the lower-middle-class families in society do not actually have the knowledge of making money in a systematic way, and our school education rarely mentions the method of making money, obviously we all know that making money is very important, but it is not allowed to enter. This situation is described in a line in the movie "1942" (see picture below)
At the time of fleeing the wilderness, the rich man and the long-term worker were penniless, but the rich man could become a rich man again in ten years with his own knowledge, but the long-term worker was still a long-term worker. Beyond wealth, cognitive abilities are the biggest gap between classes.
The more people in the lower strata of society, the more they are afraid of making money, so from the bottom of consciousness, they hope to get a long-term, stable income security, then the preferred goal of these people after entering society is to sell their time and labor in exchange for a stable income, and then spend their whole lives desperately working for money to obtain long-term stable security. As everyone knows, such a guarantee is an illusory illusion, look at the former laid-off workers in state-owned enterprises, the iron rice bowl has also been broken; and then look at this year's real estate layoffs, education and training closures, and the Internet industry's layoffs, these industries that were once extremely popular have become the industries with the largest number of unemployed people this year. In a market economy, uncertainty is the most certain thing.
In addition, the way to make money by selling time and labor (physical strength, mental power) must be transformed through layers, after all, individual time and labor itself is not a commodity, but a resource for the production of commodities, and each conversion means loss and loss of wealth, and the more times the conversion, the less the individual gains. Then even if you want to work, you must choose those positions that are close to the market and customers in order to get more benefits.
The advantage of part-time work is that you can get a relatively stable income, but the biggest problem is that once you stop working, you no longer have a source of income. This is the most common dilemma faced by most ordinary people, we work for money anytime, anywhere, but the money we earn does not bring us sustainable benefits. From this point of view, "unemployment" is the biggest crisis for ordinary families, and it is even more worrying than illness.
Advice: If your family is in the middle and lower classes of society, it is best not to listen too much to your parents, because their cognition of society and wealth is most likely wrong, and you need to find a correct path to wealth by yourself.
As mentioned earlier, once ordinary people stop working, their income is also cut off. So how can we achieve the financial freedom we dream of? No longer running for three meals a day, even if you don't work, you will have a steady stream of wealth? The mystery lies in the two words of assets.
My parents thought that whether a person has an interest rate or not is to see how much he has savings, but as everyone knows, savings do not give a person financial freedom, and this deposit is lost all the time.
Readers who can read my article know that inflation exists, but there is no intuitive sense of the ferocity of inflation, most people think that inflation = CPI, but I think that the real inflation rate = M2 growth rate - GDP growth rate.
M2: The broad money supply (M2) refers to cash circulating outside the banking system plus corporate deposits, resident savings deposits, and other deposits, which includes all forms of money that may become real purchasing power, usually reflecting changes in aggregate social demand and future inflationary pressures. In recent years, many countries have adopted M2 as a regulatory target for the money supply. [1]
——Baidu Encyclopedia
The gap between M2 and GDP in 1990-2020 is widening
Looking closely at the picture I inserted, the gap between M2 and GDP in our country is getting wider and wider, with M2 in 2020 being 210 trillion, while the total GDP is 101 trillion, which is twice the GDP. In 2020, the growth rate of M2 is 10.1%, the GDP growth rate is 2.3%, and the difference between the two is 7.8%, while the CPI in 2020 is only 2.5%, and there is a 3-fold difference between the two. This is the real reason why the CPI announced by the Statistics Bureau is not high, but we feel that prices are rising rapidly. (I don't know if this text can be reviewed)
If you have an average annual inflation rate of 7%, if you have a deposit of 100,000 yuan in your hand, it only takes seven years, and the real purchasing power of the deposit in your hand is only 60,000 yuan. You save desperately, but your savings lose 7% of every year, and after seven years you have only 60% of your wealth left. This is also why someone on the Internet asks the answer to whether the million can retire, I can definitely say that if your million is simply a deposit, retire at the age of 45, there is a high probability that your old age will be very miserable.
Advice: Instead of desperately saving money, turn that money into assets, and those that bring you more than inflation each year are quality assets. Whether there is an asset or not is a sign of a person's class leap. If you earn a salary, there is no difference between an annual income of one million and an annual income of one hundred thousand.
As mentioned earlier, inflation occurs at any time, and many people will listen to the words of experts that "debt is the best weapon to fight inflation", and many young people still use this as the theoretical basis for their advanced consumption and overdraft credit.
In the article "The biggest gap between the rich and the poor is not the amount of money, but the cognitive gap", I talked about a set of data:
More than 70% of luxury goods are bought by the working class, 20% of luxury goods are bought as gifts, and less than 10% of luxury goods consumed by the truly wealthy. So now all kinds of advertisements tell you that "you need noble products" is completely an IQ tax on the poor!
Most ordinary people do not have the opportunity and ability to invest in assets that can continue to increase in value, and in the time of financial expansion, many ordinary people take out loans to buy cars and buy bags. Most ordinary people have difficulty escaping the dilemma of low cognitive level of comparison and face, overdrafting their income, and even debt consumption to pull themselves and their entire families into the abyss of poverty. This is also the reason why many demolition households will not have the same standard of living as before the demolition ten years later, because they do not have the ability to continue to create wealth, and they are still poor in essence!
The money you get from the loan is not lent to you by the bank or Huabei, but the money you yourself borrow from your future. When we take the money we exchange for our future, just in exchange for those bags and cars that are depreciating when we go out, have you ever thought that your future will be so easily consumed.
We overdraw our future, but also have to pay high interest to the bank, Huabei, etc., but only those luxury goods that do not produce a penny of income, life is wasted in just a few decades.
Advice: Really effective liabilities, liabilities that can fight inflation, are financial liabilities to invest in assets that can continue to generate value-added returns. As the saying goes, "the poor are spending, the rich are investing," if you can insist on investing in assets with returns instead of blind consumption, financial freedom is not so difficult.
epilogue:
The financial expansion in recent years has spawned too many consumer loan platforms, loan companies, such as the white strip of a certain east and the X of a treasure, which is essentially the harvest of capital for the future of young people. It seems that they have lent money to these young people who have no self-control ability, but in fact, these young people are exchanging their beautiful future for a package and a mobile phone at present, how cheap!
Especially in an economic environment like 2021, if there are still people borrowing and spending, it is simply irresponsible for the whole family!
Another of my long articles, "Meet 2022 - Exploring the Stars in the Darkness", was restricted for review reasons, and after the analysis of the original 7,000 words was cut by 3,000 words, it could only be recommended to fans, which really hurt me. China is facing double pressure at home and abroad, and as a self-media person, it has the responsibility and obligation to tell the public the cruel truth, rather than whitewashing taiping.
In every economic crisis, it is often those of us who suffer the most from the lack of power, resources, and backgrounds. The meaning of our writing is to inform more people about the dangers we have seen, so that more people don't fall into the trap again and again.
2022, I wish you all the best!