The poor are poor, the rich are rich

Chapter 54 3 How to Fight Inflation
Chapter 113 How to Fight Inflation
Common people know a simple truth: money can only maintain its value if it is invested in social and economic activities and runs together.For example: start a small business selling tea and eggs.In the past, it was 3 cents in and 5 cents out, inflation.The price of eggs has risen, so 5 cents in and 8 cents out will transfer the pressure of inflation, so that the value of our labor can be preserved.

Otherwise, if you don't participate in economic operations, it will definitely be difficult.There is a person who was demobilized from the Air Force Aviation School for 20 years and paid 3000 yuan for demobilization.It was a huge sum of money at the time.He excitedly deposited it in the bank and used it as tuition fees for his children.But 20 years have passed, and the 3000 yuan has quadrupled in the bank. At that time, it was enough for three children to go to college from elementary school, but in the end it was only enough for one child to spend one semester of senior year.

We may not be able to beat the world champion Liu Xiang anyway, but we have to work hard to beat inflation.Here's what we might do if we want to outperform inflation:
First of all, we must work hard, earn more money, and live a life of open source and budget.

Secondly, learn more financial management knowledge, so that the value of the money in our hands can be maintained and increased, and money can be used to make money.Here are a few practical financial management methods.

1. Buy bonds
With the increase of interest rates and the repeated increase of the deposit reserve ratio of financial institutions, bonds have gradually become the object of enthusiasm of the people and institutions.Many ordinary people have long been familiar with government bonds. Recently, there has been a rare scene of queuing up to buy government bonds since the bull market. Many corporate bonds have also been issued one after another, with interest rates ranging from 4% to 7%.Short-term financing bills are relatively active, and the maturities are mainly concentrated in 3-month and 1-year varieties, mainly because the maturities are relatively short, and under the current expectations of high inflation and deflation, they have an advantage in resisting the risk of rising interest rates.

2. Investment funds
Funds are the first choice for ordinary people to invest in financial management. According to the investment allocation ratio, funds are mainly divided into stock funds, hybrid funds, bond funds, currency funds, etc. Investors should combine and allocate some funds according to their own risk tolerance. Grasp the allocation ratio of various types of funds, strive to achieve the best combination effect, diversify risks, and pursue maximum returns.Fund fixed investment is a fixed fixed investment, which has the characteristics of diversifying risks and accumulating less to make more. Through the compound interest effect of long-term investment, the average return of the market can be obtained, which has become one of the effective means to resist the shrinking of wealth and maintain the purchasing power of money.

3. Financial products of banks and securities firms
Generally speaking, the wealth management products launched by banks and securities companies are relatively stable, and the income is relatively fixed. The current expected income is generally 5% to 15%.When designing wealth management products, two data are mainly used as reference standards, one is the one-year time deposit rate, and the other is the CPI.The rate of return on deposits is fixed, but the rate of return on wealth management products can be designed to reach different levels. Therefore, it is not a problem to outperform the CPI.

4. Stock
The stock market has entered a bear market stage after experiencing a vigorous bull market. It can be said that some companies are happy and others are sad.Stocks are also a very good investment and financial management tool, but they require relatively high professional knowledge and investment discipline from investors. If you don’t know anything about stocks or know a thing or two, then blindly follow the trend and enter the market, it is very dangerous. , What is waiting for you may be "pay tuition to buy lessons", the more money you manage, the less money you manage.Stock investment is more suitable for investors who have time, energy and ability, and the returns are still considerable when the market conditions are good.

5. Gold
In the United States, gold is a financial product for the middle class.Compared with real estate, gold is characterized by high liquidity.A house that sells for 100 million yuan in the center of Xiamen is only worth 50 yuan in the suburbs. Real estate investment depends on the location, and gold investment is not affected by the location.A standard gold bar can be circulated in the world, and the price is the same all over the world.Compared with real estate, high liquidity is a unique feature of gold.

Compared with stocks and foreign exchange investments, the investment risk of gold is relatively low.In the stock market, stockholders compare dealers to evil wolves. In the gold market, there is no need to worry about someone being the dealer. When the current British Prime Minister Brown was the Chancellor of the Exchequer, he was bearish on gold and sold 50% of the UK’s gold reserves. Unexpectedly, the situation suddenly changed. The price of gold rose from $250/oz to $350/oz, and the British government lost billions of pounds.The government's selling can hardly stop the rising trend of gold prices, therefore, the risk of gold investment is relatively low.

(End of this chapter)