Today, the economy is sluggish, and people are more or less confused about the future.
Even many families are facing the disaster of losing their jobs and being laid off.
In this case, the money saved by the family becomes extremely important.
In this regard, experts have also begun to remind everyone that if you have a deposit of 300,000 or more at home, you must pay attention, because you are likely to face these three major troubles!
The sources of information in this article have been repeated at the end of the article, and in order to improve the readability of the article, the details may be polished, and are for reference only
The great stress of life
In the current economic downturn, we have to face the dual pressure of inflation and bank interest rate cuts.
Prices and rents continue to rise, purchasing power plummets, and bank deposit rates continue to fall, and the meager interest on deposits is unable to hedge against the depreciation caused by inflation.
For families with a certain amount of savings, this is undoubtedly a battle to defend their funds.
Nowadays, the claws of inflation are pervasive, from daily life to investment and financial management, it is impossible to escape its interference.
Even now, even instant noodles or cola have begun to rise.
Back then, this was just the tip of the iceberg, from food and beverages to clothing and appliances, to transportation and housing, inflation was constantly eroding our wallets.
According to official data, the consumer price index in mainland China will rise by 2.5% year-on-year in 2023, but this is only statistics, and the rising real cost of living will be felt more strongly.
The hassle of saving money
At the same time, in order to stimulate economic development and release funds in the hands of residents, banks have lowered deposit rates.
The latest deposit rates announced by a large commercial bank are as follows: the one-year time deposit rate has been lowered from 2.75% to 2.25%, and the three-year deposit rate has been reduced from 3.05% to 2.85%.
This has undoubtedly exacerbated the impact of inflation on savings. In the past, even a small interest rate on deposits was enough to hedge against the depreciation caused by rising prices.
But now, interest on deposits may even struggle to cover inflation, deposits are depreciating at a rate visible to the naked eye, and purchasing power continues to decline.
Some research institutions estimate that under an annualized inflation rate of 2.5%, the renminbi will depreciate by about 22% every 10 years. Those who keep their money in the bank and eat interest will probably have a harder time.
So is it possible to invest money in financial management and seek higher yields to hedge against inflation?
Don't invest blindly
In this period of high inflation and fluctuating interest rates, the risks of investment and financial management are indeed increasing day by day.
Whether it is the traditional stock market, bond market, real estate, or bank wealth management products, risks and hidden dangers are everywhere. We must always keep a clear head, look at investment risks rationally, do what we can, and make prudent decisions.
High inflation is continuing to erode our purchasing power and investment returns.
In this environment, any fixed income investment is at risk of being eaten up by inflation.
At present, the mainland's economic recovery is limited.
The weak development of traditional pillar industries such as manufacturing and real estate, as well as the decline in corporate profits, will have a huge impact on stocks, bonds, trusts and other related investment fields.
In addition, uncertainties such as geopolitical conflicts and rising trade protectionism have also exacerbated the downward pressure on the economy and dealt a heavy blow to the investment environment.
In the context of the economic downturn, the volatility of financial markets will undoubtedly become more intense. For example, the Shanghai Composite Index has experienced several violent fluctuations since October last year, with great ups and downs. Similar volatility will continue, and market risks should not be underestimated.
At the same time, financial chaos such as credit bond defaults and private lending occur from time to time, bringing potential risks to bank wealth management and equity investment.
The developed financial market has also given rise to various illegal and criminal activities. In recent years, cases of false securities and futures, illegal fund-raising, and pyramid schemes have been repeatedly prohibited, exposing the stubborn disease of financial crimes.
Criminals often take advantage of investors' desire for high yields to confuse the public and mislead investors into taking the bait. Some of the victims have lost all their money, and most have gone into debt, which has dealt a heavy blow to their families.
In the face of many investment risks, the key to our trade-off lies in four words: do what we can.
First of all, we must rationally understand the risks and returns of investment, and take a seat with the right number. Investment and financial management is not a one-shot deal, it is necessary to choose the right target species according to your own risk appetite, investment period and financial strength.
For example, for risk-averse conservative investors, low-risk investments such as bank deposits or treasury bonds may be more suitable.
Secondly, we must learn to rationally analyze investment information and improve our ability to discern. For any high-yield temptation, remember the old saying, "There is no such thing as a free lunch." When encountering a profiteering project or being pulled by others to buy an irrational product, you must verify it more and do not blindly follow it.
Finally, family investment and financial management must focus on decentralized allocation, and do not put all eggs in one basket. Funds can be appropriately diversified into stocks, bonds, bank wealth management and other varieties to diversify risks.
In the face of this high-risk investment environment, it is necessary for us to be vigilant at all times. Maintain a cautious and rational attitude and do what you can in order to manage your finances prudently and get through this period of risk. Only in this way can we minimize investment risks and protect family wealth.
Some unqualified wealth managers may even take risks to mislead investors into high-risk areas, deceive and deceive, and cause investors to lose all their money.
So, how do families with savings weigh up?
Decentralized management
Blindly depositing money in banks and letting it depreciate no longer works, but blindly investing in wealth management products and being keen on the pursuit of high returns is also extremely risky.
Therefore, it is important for families to make prudent decisions when managing their finances. It is necessary to weigh the risk-return ratio, rationally evaluate the investment target, and choose products that match your own risk appetite.
At the same time, families should also learn to diversify and diversify risks. You can invest a portion of your money in lower-risk fixed income products to prevent them from being consumed by inflation, and you can also keep some of your emergency funds in case you need them.
For other idle funds, choose the opportunity to invest in the operation, but the investment ratio should not be too high to control the risk.
Only in this way will we be able to overcome the current economic downturn and tide over the difficulties. For the majority of families, proper financial management is very important, let us learn professional knowledge together, master scientific methods, and escort family wealth.
I believe that as long as you maintain your concentration and calmness, you will be able to win this battle to defend funds!
Resources
(Beijing Business Daily) is about stocks, high-risk investment! New regulations have been added to the long-term assessment of state-owned commercial insurance companies