Economic Wisdom to Apply in Your Twenties

Chapter 2 Prologue
Prologue In your twenties, learn economics well to be better than others

Before you were 20 years old, your money was earned by your parents, and your so-called financial management was at most a choice between spending your pocket money on snacks or buying comics.However, when you leave the campus, you start to make money and spend it yourself. You will have a family with children, and you will have to pay for the car, house, daily necessities, oil and salt, and your aging parents will need you to support them... Various expenses, large and small, will come one after another. You need more and better funds, you need financial management and investment-and these are inseparable from economics.

Section 1 From youth to maturity, you must study economics

In universities, economics majors are the most popular, and those who do not have high scores cannot enter.If you don’t have the opportunity to study economics during college, you can’t miss it at the postgraduate level, so cross-professional economics postgraduate entrance examinations have become popular.

Turn on the TV, open the newspaper, and you will be full of financial news and stock quotes; economists are often invited to be the guests of the government, giving advice on national economic policies and giving advice.In the book building, economics books are placed in a prominent position, including "Economics in a Small School Bag" for children, "Economics in the Eyes of Women" and "Love Economics" specially prepared for female readers. Interesting "Milk and Coke Economics", "Chocolate Economics", of course, there are more "Everyone Loves Economics", "Read Some Economics Everyday"... Living in the present, if you don't know a little economics , If you don’t know demand, supply, GDP, CPI, stock index, personal income tax, you will feel as if you are outside the world and unable to connect with the world.

Young people in their twenties may still habitually think that economics is an old professor with a gray beard who calculates jerky production and cost models between curves and formulas full of blackboards, and studies some things that have nothing to do with us. Economic issues.

So, the first question we need to figure out is: what exactly is economics?
The history of economics is very short, just over 200 years. In 1776, an Englishman named Adam Smith wrote a book called "A Study of the Nature and Causes of the Wealth of Nations", commonly known as "The Wealth of Nations". Economics works in the sense. "The Wealth of Nations" is the pioneering work of modern political economics, and Adam Smith is also known as the "father of economics".

Prior to this, unformed economics originated from a certain economic thought formed by Western thinkers expressing their opinions on some economic phenomena and problems at that time.Since there was no systematic economic thought at that time, the subject was often mixed with the political, legal, ethical, religious and other thoughts of these thinkers.

It can be said that at the beginning of the birth of economics, it is inseparable from social and economic life, providing people with a way to understand, analyze and transform the world.As the famous economist Marshall commented: "This is economics, which is the study of general human affairs."

Young people in their twenties are in a critical stage from youth to maturity.We who have just stepped out of the ivory tower still lack a deep understanding of this society, and we need to think more rationally about life. Even more specifically, we wonder why we are always unable to make ends meet with the money in our pockets... Need economics to answer for us one by one.We in our twenties should begin to understand that knowledge of economics is in the middle of our lives.

1.The world is governed by economic principles
It is no exaggeration to say that economic principles are the most important cornerstone of supporting the entire society.The history of mankind is an economic history, a history of challenges and challenges to maintain and obtain more material conditions.Economic issues may manifest themselves as political and diplomatic issues, but historical events that appear to be political on the surface ultimately stem from economic interests at their core.It can be said that the economy is the driving force behind the domination of the world. It was so in the past, it is so now, and it will be so in the future.

2.Economics ties our wallets
Even people who have never studied economics will naturally associate "economy" with terms such as "bank", "investment" and "financial management".Indeed, economics is a discipline where every penny matters.

Before you were 20 years old, your parents earned money from your parents, and your so-called financial management was at best a choice between spending your pocket money on snacks or comics.However, when you leave the campus, you start to make money and spend it yourself. You will have a family with children, and you will have to pay for the car, house, firewood, rice, oil and salt, and your aging parents will need you to support them... various expenses, large and small, will come one after another.You need more and better funds, you need financial management and investment-and these are inseparable from economics.

Maybe you have figured out your own financial management method without knowing economics, maybe you can still make a small profit investing in stocks under the guidance of colleagues and friends... It seems that even if you don’t study economics, you still have a good life, However, what if learning economics well can make your life more scientific and better?Thinking a little further, you may be doing well now, but what about 30, 40 and beyond?If you learn economics well in your twenties, you will have a worry-free future after your twenties.

3.Learn economics well, let us live smarter
You may still think that only professors or business people need economic knowledge, then you are wrong.

Have you ever encountered such a situation in your life:

Bringing a close friend to go on a blind date, which resulted in a marriage of the close friend.

In the helpless choice of postgraduate entrance examination and employment, I don't know where to go.

Regret on the good times that were wasted, and can't extricate myself.

Forgot to bring money, the hawker downstairs does not allow you to take away the watermelon and then bring the money.

……

Why were you replaced by a close friend?Why are you confused?Does regret work?Why do peddlers distrust you so much?Economics can reveal these mysteries for you: you don’t understand the respective comparative advantages of you and your close friends; you haven’t calculated the opportunity cost of postgraduate entrance examination and employment; You are playing a one shot game.

Economics is that simple and fun.As long as you are willing to look at the economy from the perspective of life, you will be able to enjoy the gift of life brought to you by the magic of economics.We should realize that the younger you are when you learn economic knowledge, the faster you can acquire and use the wisdom of life.

(End of this chapter)