If the economy is down, how can ordinary people survive the winter? I believe that many people care about this topic, because after all, we are all ordinary people.
In fact, I personally feel that if you encounter an economic winter, you should abide by the following principles:
1. Eliminate bulk consumption
The first is to eliminate bulk consumption. Therefore, the economic winter, the simple understanding is that money is getting harder and harder to earn, but consumption is easy. So in this context, in principle, do not make bulk consumption: because in this context, workers in the system may face embarrassment of salary cuts, while those outside the system face unemployment at any time. Individual abilities are sometimes insignificant in the face of the torrent of the times. In this context, if you choose bulk consumption, it is likely to lead to your own economic passivity.
After all, commodities are mostly followed by loans for several years, and if they catch up with unemployment, they are prone to a crisis of loan cutoffs.
Of course, while eliminating mass consumption, it is also necessary to avoid the problem of unemployment. After all, in a cold economic winter environment, it is easy to lose your job, but it is not necessarily so easy to get back into employment.
2. Spare money disposal
Of course, for people who have a certain amount of spare money at home and have investment ideas, they may be more concerned about how to choose investment in an economic downturn.
Personally, I think:
First of all, asset-heavy entrepreneurship should be avoided. Because the risk factor of entrepreneurship is very large. For the rich group, business failure may be the difference between eating a few dishes for a meal in the short term, but for ordinary people, the failure of a heavy asset business can be bankrupt at best, and the worst is heavy debt. In the case of rapid economic development, the success rate of entrepreneurship is not high, let alone in a bad situation.
Second, eliminate futures and stocks. The bilateral nature of futures (you can go long, you can sell short) makes many people think that futures are a weapon to get rich, but the professionalism of futures is quite high. Even many hedge fund managers, aided by a team of experts, are unable to make correct judgments about the prospects of the futures market, let alone retail investors. Therefore, futures investing is not suitable for the vast majority of people. Although the risk of stocks is not as high as that of futures, there are not many retail investors who can make money in a bull market, let alone in the cold economic winter? Therefore, it is not recommended to choose to invest in stocks in the cold winter state.
Third, investment-type insurance. Many annuity insurance have an interest rate of 3.5%, which makes many people feel that the interest rate of this insurance is very suitable in the state of low bank interest rates. But if insurance wants to be realized, it needs a cycle, and it needs to go through a lot of procedures. Therefore, unless it is spare money in spare money, it is not recommended to take too much money to invest in this type of insurance.
Fourth, gold. Many people think that gold is a hard currency, so they choose to buy gold. This idea may not be correct. For example, gold has fallen very badly recently. In fact, gold only has the function of preserving value, not the function of value-added. Therefore, a small proportion of assets can be converted into gold, but most assets are not suitable for gold exchange. What's more, assuming deflation, gold may fall further.
In general, for ordinary people with investment needs, the safest way to deal with funds is to deposit time deposits or buy bonds - because both of which can contribute more or less to the flow of funds to investors. Especially bonds. Generally speaking, the interest rate of bonds is fixed, so if you buy bonds, you don't have to worry about the interest rate falling. Bank deposits, on the other hand, have lower interest rates.
In short, in a sluggish state, individuals should prevent unemployment, spend cautiously, and choose stable and safe investment projects for personal funds.