The world wants to abandon you and won't even say goodbye!
30 years ago, a pair of cowhide shoes cost 50 yuan, and now it is estimated that 500 yuan is still a fake; Nowadays, when you buy a movie ticket, the price has increased by at least 30 times; Eating root ice cream, the price has also increased by more than 10 times.
If you compete, save your money, save it for later, and lose even more.
More than 30 years ago, Granny Tang deposited 400 yuan in the bank that could buy a house. Now, the 400 yuan deposit can have about 438.18 yuan of interest, deducting the interest tax of 2.36 yuan that needs to be levied in the middle years, and only 835.82 yuan can be withdrawn with principal and interest. Today, the more than 800 yuan of money, let alone buying a house, is not enough to buy a bottle of Maotai. The money saved will not be able to keep up with the rise in prices after many years.
So what is it that makes our wealth shrink year by year? And is there any way to keep our money unaffected and keep its value?
Let's talk about it.
First, can we completely eliminate inflation?
The reason why the money in our hands will depreciate is "inflation".
Inflation, taken literally, "currency" refers to money in circulation; The exponential amount of "inflation" grows.
Generally speaking, the amount of money in circulation increases. The state printed too much money into the market, far exceeding the actual needs of the economy, causing paper money to depreciate and prices to rise.
So why are countries keen to print paper money?
Because we don't want to let the economic development be constrained, the economy must always roll forward, and money must be printed in large quantities to keep up with development.
For example, this year I planted 100 pounds of potatoes with my bare hands, and the transaction amount was 100 yuan. Next year, I used a machine to sow seeds, and I can grow 500 pounds of potatoes, and the transaction amount will rise to 500 yuan. So if there is only 100 yuan this year in the market, and next year's 500 yuan transaction amount cannot keep up, can it still be traded?
Of course not!
Therefore, the state has to print more money to ensure the transaction of these 500 yuan potatoes, of course, but also consider other radishes, rice, pork, steel, mobile phones, energy and a series of market transactions. If you are not careful, you will print more than these transaction needs, then inflation will follow.
Hearing this, you may understand why there is inflation.
As long as the economy develops, the quantitative demand for money will always increase, and inflation will inevitably follow.
So, the question we just mentioned, can we completely eliminate inflation?
No!
If inflation disappears, the economy is bound to decline! The recession will lead to the bankruptcy of enterprises, a large number of layoffs, people's life loss of motivation and other negative drawbacks.
So, let's not be too afraid of inflation. Benign inflation is reasonable, and what we should try to avoid is hyperinflation.
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Second, how quickly is money depreciating?
Since benign inflation is justified, can we ignore it?
In fact, as long as inflation exists, the money in our hands will be slowly diluted and devalued sooner or later, just at a fast and slow pace.
If the inflation rate is 1%, your purchasing power of 100 yuan will become 99 yuan the next year, and after 20 years, the purchasing power of this 100 yuan will only be 82.
If the inflation rate is 5%, this means that your $100 will shrink to $60 in 10 years, and only 36 after 20 years.
If you encounter higher inflation, such as hyperinflation, and the inflation rate reaches 15%, then your $100 will become $20 in 10 years, and how much will be left in the last 20 years? Only 3 pieces of 8 Mao 8!
Inflation tends to look modest, but if you compound interest over a long period of time, it's still very damaging.
Third, how can we fight inflation?
Having said all this, many people may be more confused, since inflation is inevitable, and money will depreciate sooner or later, then what should we do?
It is recommended that you still hold the "3 things" in your hand or be stable.
First, a healthy body.
The body is the capital, there is no need to say more, just say a little, having a serious illness may make a family's wealth for many years go down the drain, without a good body, no amount of wealth is useless. Today's people always like to compare with others what they don't have, what they don't have a house, no car, no money. In fact, sometimes we should be more than others than ourselves, such as having a healthy body, a complete family, and a stable sleep until dawn.
Second, survival skills.
For most ordinary people, the only thing that can dance with inflation is work. Because we know that with the economy, as long as you can keep pace with the times and provide job skills, your income will also increase with the economy, enough to resist inflation.
Someone once asked Buffett, if only one stock was chosen to fight high inflation, what should he choose?
Buffett did not answer directly, but said: "The best thing you can do is to do something particularly well, regardless of financial benefits, the best investment is to invest in yourself, do what you are good at, become a useful person to society, and don't have to worry about your money depreciating due to high inflation." The best protection against inflation is to invest in your own skills.
Third, reasonable asset allocation.
Based on a study of 100,000 households with long-term steady asset growth around the world, Standard & Poor's has summarized a quadrant chart of household asset allocation.
According to the use of funds, household assets are divided into four accounts, corresponding to four quadrants, and suggestions are provided for allocation ratios: 10% as a reserve for daily expenses, 20% for emergency leverage, 30% for high-risk investments, and 40% for long-term stable financial management.
The S&P Family Asset Quadrant chart provides us with a financial guidance and reference, allocating funds to four different accounts according to different purposes, and the allocation ratio of each account can be dynamically adjusted with changes in income and age, so as to achieve stable asset preservation and appreciation.
Silent inflation, has been implicitly expanding, but the door of wealth always quietly opens, and quickly closes, blocking people who know later, I only hope that the person who stays inside the door will be you.