1

"Crazy" layoffs

To talk about the "art" of layoffs, it has to be a big factory.

Recently, a "graduation notice" for JD.COM employees on social platforms has been hotly searched. In this graduation letter, the beginning impressively reads "Happy graduation! Congratulations on your successful graduation from JD.COM! Thanks for being with you all the way! "

Although three exclamation points are used in succession, even though the lines are happy and smooth, I believe that the person who got this letter will never be happy. Not only will they not be happy, but their hearts will be full of bitterness. Because behind every letter is a hard-working worker, his wife and children, parents waiting for him to support, and heavy mortgage and car loans ... < P > The "wave of layoffs" of Internet giants is getting worse and worse, and it is like a "pass the parcel" of layoffs. Followed by the collapse of countless people in the middle of the night! High debt will be their nightmare at night.

In the past, many people were always blindly optimistic about the future. When they bought luxury houses and luxury cars after promotion and salary increase, they always thought that the future would go on smoothly and turned a blind eye to possible risks. Nowadays, people are suddenly laid off, and life is urgently pressed to pause. What to do in the future may be a question that has never been thought of before.

people have never been used to thinking about the war and chaos in the prosperous times of singing and dancing. But it is precisely those who plan against the wind when things are going well that can be poised and strategizing in the sudden changes.

life is impermanent. Our ancestors taught us to be prepared for danger in times of peace, so that we can keep calm in times of danger. In the face of the growing tide of layoffs, it is time to think about this issue.

2

Young people in debt

Debt means instability in the eyes of the older generation. They think they are capable of doing many big things, and it is not practical to owe money to live. But today, debt has become the "normal state" of our life, such as mortgage, car loan and credit card consumption ... < P > According to the Report on the Debt Situation of Young People in China in 22, the average debt of the post-9s generation in China is about 127,, and young people with higher income, bachelor degree or above and overseas experience will generate more substantial debts. This is only the statistical data in 219. After the outbreak in 22, it is estimated that young people will have more debts. Another set of data shows that the post-9s generation accounts for half of China's lending market, and as many as 86.6% of them will choose to use credit-related products.

although only 42.1% of these young people who are in debt have the financial strength to pay off the loans they owe, we can't think that debt is bad.

Because refusing to be in debt may make us miss many opportunities to use debt to create wealth. Reasonable and moderate liabilities are conducive to the appreciation of assets to a certain extent.

then the question comes: what kind of debt is "reasonable"?

3

What kind of liabilities are "reasonable"?

Generally speaking, there are "good debts" and "bad debts". "Good debt" refers to those debts that are within their own tolerance and have sufficient repayment ability to help accumulate wealth or increase future income, such as student loans, mortgage loans or commercial loans.

"bad debt" refers to those debts that are borne purely for the enjoyment of consumption in advance, and the situation that the interest rate is too high, which leads to excessive debts. For example, credit cards or other debts that do not help much to improve one's financial situation.

In his Rich Dad, Poor Dad, Robert Toru Kiyosaki listed a detailed classification of good debts and bad debts.

but things are not always so simple.

In the rising period of my career, it is logical to buy a luxury house with a promotion and salary increase. At this time, the loan is a "good debt", but one day I suddenly lost my job and was unable to repay the loan, and then the loan became a "bad debt".

Another example is credit card debt. If you can repay in full and on time without causing too much financial pressure, it is a good debt. But if you can't repay in full, but have to use installment business, or even overdue, which leads to personal credit damage, then it is a bad debt.

So, from this perspective, there is no difference between good and bad debt itself. The key lies in how individuals make a good risk assessment and manage it reasonably.

4

Risk control of debt

Risk control of debt has two core elements, debt ratio and cash flow.

the debt ratio is the ratio of debt to total assets, which is the ratio of your debt amount divided by your total assets.

for example, if you have 1 million in hand and borrow 1 million to buy a house worth 2 million, then your debt ratio is 5%, that is, you borrow 1 million divided by the value of the house you bought.

For ordinary families, a debt ratio of less than 5% is a relatively safe debt ratio; Beyond this level, there may be risks. Of course, the situation of each family will be different, and how much debt ratio they can bear must be determined according to the actual financial situation of the family.

the second core element of debt risk control is cash flow. Needless to say, the importance of cash flow, sustainable and stable cash flow is the source of debt servicing. The COVID-19 epidemic has made people have a deeper understanding of this. Some people still sit back and relax when they don't go to work for three months, and some people burn their eyebrows after a few days of isolation. Different cash flow conditions make everyone's life ice and fire.

If a family has a stable income every month, there is no need to worry about debt with a reasonable debt ratio, because the wealth brought by debt is basically positive. If the income of the household income earners is unstable, the debt ratio should be reduced as much as possible.

so the debt ratio depends on the stability of cash flow sources, and the two are closely related. The cash flow is relatively stable, and the debt ratio is acceptable, while the cash flow is unstable, and the debt ratio must be reduced.

However, in today's ever-changing world, stability is never absolute, and the greatest certainty is uncertainty. But we still hope to find some relative certainty. And this relative certainty comes from our control over our own lives.

Only by rationally allocating assets, acting according to one's abilities to debts, taking precautions against risks in advance, and being prepared for danger in times of peace for the future, can you truly be the master of your own life, instead of being led by life.

I hope everyone is neither too pessimistic nor blindly optimistic, but works hard and lives hard with an open mind.