For ordinary people, there are actually only two ways to combat currency devaluation.
The first is to buy assets that can fight inflation.
The second is to constantly increase their ability to make money.
Of these two roads, the first one seems simple, but it is actually very difficult.
The second one may not seem easy, but it is not difficult as long as you work hard.
The so-called currency depreciation is actually caused by a large number of currency issues.
Because the goods produced in the whole market can't keep up with the amount of money, it leads to inflation, rising prices and natural devaluation of the currency.
Currency depreciation corresponds to rising prices, and in principle, it can be preserved by purchasing assets.
But for ordinary people, most of the money is spent on consumption, not on buying assets.
The devaluation of the currency directly led to the increase of consumption cost. If we catch up with the big wave of consumption upgrading, the cost of consumption expenditure alone will increase greatly.
If the quality of life cannot be guaranteed, then it is meaningless to buy more assets, even if it is to deal with currency depreciation.
For ordinary people, the first priority to fight against currency depreciation is to ensure income growth and increase earning power.
Therefore, you should know how to invest in yourself at all times, instead of just buying assets to deal with currency depreciation.
Why do the millions of households in the 1990s and those in the early 20th century gradually disappear from people's sight?
It's not that they didn't buy assets to deal with currency depreciation, but because of the changes of the times, their ability to make money has declined.
They used to be at the top of society, but now they may only be at the middle and high level.
If the investment fails, the situation may be worse.
So even if the assets are preserved, their class is gradually declining, because there are people who can make more money standing at their top.
If you look closely at the rich list, you will find that most rich people still rely on the money earned by running businesses instead of buying assets.
In essence, assets can only be preserved, and making money can make you rich.
Ordinary people can increase their competitiveness and earning power through continuous learning and knowledge. Of course, they can also make progress step by step through their growing social skills and circle influence.
These can not only cope with currency depreciation, but also increase their wealth.
Only when you become stronger first can you have funds and be qualified to talk about those issues about asset allocation.
Many people have been arguing endlessly about what assets will be the most valuable in the next decade or two.
Will it be house, stock or gold?
Yes, in the last ten years, the property market has maintained its value and even appreciated because a large amount of funds have flowed to the real estate market.
But this does not mean that the property market will remain unchanged and appreciate in the future, and there is no inevitability and relevance in logic.
China's broad money M2 is only about 200 trillion yuan, but the total market value of the property market has reached 500 trillion yuan, which means that all the money is not enough to buy all the buildings, which is problematic.
So the future property will not be kept?
What can preserve value?
In fact, this issue is not the most important, because many people have made a fatal mistake, that is, they made an asset bet on the matter of preserving value.
Even if you bet on the appreciation of assets in the short term, life will be long for decades, and who knows whether it will reverse in the next decade.
In principle, the surplus money in circulation will enter every corner of the market.
As ordinary people, we have no way to accurately predict what kind of market funds will flow into, whether it is the property market, the stock market or commodities.
But we can make a comprehensive asset allocation, covering the property market, stock market, commodities, art and other markets.
If we look back on the past few decades, in fact, rational allocation of assets, in principle, holding houses, cash, stocks, gold, foreign exchange, can preserve value.
Only in a certain period of time, some of these assets have greatly increased in value, which makes us have the wrong cognition that we can preserve the value by buying only one asset.
Everyone has his favorite assets, such as some just like buying stocks, some just like buying houses, some like gold jewelry, and some like cash management.
There is nothing wrong with these assets, but the money in the market will not just flow into these markets evenly.
Instead of betting on which assets will ride the dust, it is better to allocate some of each and take the average value, because the average value is closest to the currency depreciation rate.
This is why, if you do a good job in asset allocation, you can determine the value preservation.
However, maintaining value is not appreciation. What many people actually want is not to preserve the value, but to find ways to break through inflation and pursue appreciation, which is naturally more difficult.
If you want to know which assets will definitely appreciate, you must understand the logic of appreciation and why monetary funds will flood into these assets.
From the perspective of big logic, only one kind of assets will appreciate, and that is "quality assets".
What is a quality asset can be expressed in four words, that is, the demand exceeds the supply.
What do you mean, demand exceeds supply? Can't you buy it?
Actually, it's not. Demand exceeds supply, which means that more people buy and fewer people sell.
For example, a good stock is in short supply, and many people buy it and few people sell it, so the stock price keeps rising.
For example, the supply of real estate in first-tier cities is in short supply, otherwise no purchase restriction measures will be taken, and the downtown and school districts are still rising steadily.
For example, celebrity calligraphy and painting are in short supply, and the price rises at auction.
For example, the price of anything with limited edition, from sports cars to sports shoes, is also rising.
High-quality assets that can appreciate must be scarce, followed by high added value.
As for what will be scarce in the future, people have different opinions.
At one time, people thought that oil was scarce. Later, oil exploitation was not only excessive, but also more and more clean energy sources were replaced, and oil prices continued to fall.
At one time, people thought houses were scarce. Later, more houses were built and the population became smaller and smaller. Since then, house prices in those empty cities have stopped rising.
The value of assets essentially depends on supply and demand, and the change of price is the rebalancing of supply and demand, that's all.
I don't know if you can realize which assets will be more valuable, which are consumer assets and how to deal with currency depreciation after reading them.
But these are not the key issues.
Again, for the general public, striving to improve themselves and increase their income is the main way to resist any economic risks.
There is a positive correlation between inflation and a country's economic development, which is particularly prominent in China. In the past 30 years, the economy has skyrocketed for 30 years and prices have skyrocketed for 30 years. Relatively speaking, it is also the fastest devaluation of the currency in 30 years.
According to the data, since 1986, the total national currency has increased by about 280 times in the last 30 years. In other words, the total amount of funds in 1986 is 10000 yuan (10,000 households), which is equivalent to 2.8 million yuan now. The total amount of money has maintained an annual growth rate of 2 1%, and the corresponding purchasing power.
How should we ordinary people deal with the devaluation of the currency? I think it's three o'clock.
0 1 Promoting career development and personal growth is actually the most anti-inflation currency. Depreciation is rapid, but as long as your income level can keep up, the threat of currency depreciation is small.
When it comes to inflation, many people's first impression is financial management. In fact, I think financial management is a combination of risk and income. The rapid development of work and the rise of wages are all real, but real money is sent to you every month, which is reliable!
For example,
My mother works in banking. Thirty years ago, her monthly salary was less than 100 yuan. Her work is not excellent, and she is not a mixed leader until now. But now her salary can still reach nearly 10000 yuan, which has increased by1000 times in 30 years.
And if you want to rely on financial management, you hold 100 every month to achieve the monthly financial management goal of 10000. What is the annualized rate of return? Such a high annualized rate of return will be maintained for decades, and Buffett will have to do it.
In the workplace, my mother is not a success at all, just happened to choose the right industry. In our era, with the development of the workplace, the methods to combat currency depreciation are becoming more and more perfect.
I have a classmate who graduated from 20 10 university and works in a small internet company in Xiamen with a monthly salary of less than 3000 yuan. Later, with the excellent business ability accumulated for many years, I moved to Ali with an annual salary of nearly 700,000. If converted into annualized rate of return, how high it is!
Therefore, I believe that career development is the number one weapon to deal with currency depreciation. Especially for young people, there are many possibilities in the workplace. Choosing the right industry and practicing internal strength are better than any financial management.
Learn financial management skills and use financial tools to promote wealth appreciation. The currency depreciated badly. As long as we keep the wealth growing synchronously, we can offset the impact of currency depreciation on our lives. If workplace development is fundamental, learning financial management is a "booster" for wealth appreciation and a sharp weapon for us to deal with currency depreciation.
Choosing different financial instruments is not the same as "transforming" wealth in such a long period of 30 years.
Twenty years ago, others invested in gold, and you chose bank demand deposit; Ten years ago, someone bought a house and you chose national debt; Five years ago, others bought Tencent shares, and you chose P2P platform. The difference between others and you is a unique financial choice.
How to choose the right financial instruments? This will test our financial management ability. Investment vision is actually the result of learning. No one is born good at managing money. Everyone learns and practices while growing up with mistakes and corrections.
For us ordinary people, only by cultivating financial awareness, learning financial management skills and choosing appropriate investment targets can we better cope with currency depreciation.
Judging from the current economic environment, I think there will be two opportunities.
First, China's stock market. Judging from historical data, the stock market is one of the investment targets with the highest rate of return. Moreover, China's overall economic development is stable and it is gradually entering the center of the world stage. Such a good momentum of economic development will certainly be reflected in the stock market. For us ordinary people, choosing an index fund and investing in the stock market has a high probability of having a good report.
The other is the real estate in the core area of the core city. Although the recent news information says that house prices are falling and the state's regulatory policies are very tight, I think the urbanization process of the country is still going on, and the role of core cities in absorbing population is becoming more and more obvious. In addition, with the development of economy, people will have greater demand for improving their living environment. As long as there is demand, the property in a good location can still maintain and increase its value.
Understand financial risks and learn to control the preservation and appreciation of your instinctive wealth. What are you most afraid of? Most afraid of principal damage!
Ordinary people should pay special attention to preventing and controlling risks when dealing with currency depreciation. Many times, we blindly pursue high returns, but it is easy to fall into the investment trap. Imagine that the principal is gone and the currency in your hand is gone. What should we talk about in dealing with currency devaluation?
Investment and financial management, risks and benefits will always coexist, and our human nature is often that when making money, we are more and more courageous. When the stock market is at 5000 points, some people dare to shout the slogan of 10000 points, and some people will start margin financing and securities lending.
This is human instinct, and it is used too much, but investment and financial management are against instinct, and many investment decisions are against instinct, so Buffett said that when others are crazy, they are afraid, and when others are afraid, they are crazy.
In fact, the erosion of wealth by inflation and currency depreciation is still slow, and those investments that ignore risks and yield to instinct are "immediate" and directly ruin your life.
To sum up, there is a strong positive correlation between currency depreciation and economic development. How should we ordinary people face this situation? To accelerate personal growth and promote workplace upgrading, this is the fundamental path; We should learn how to manage money and choose the right financial instruments to keep our wealth; We should control risks and learn to fight against instinct.
We can recall that from the 1990s to the present, due to the existence of inflation, prices are rising rapidly, and our currency is in the process of depreciation. So in the process of currency devaluation, how do ordinary people deal with it?
0 1 normal currency depreciation We can find from the data published every year that inflation exists every year, so the currency naturally depreciates. However, this devaluation is not large, and the impact on our lives is not obvious.
In this case, we can live a normal life without worrying too much about something. If you have achievements, you can choose treasury bonds, bank deposits, regular financial management and other ways to fight inflation and increase your capital.
We don't need to worry too much about currency depreciation, just live a normal life and manage our finances reasonably.
02 Abnormal currency depreciation ① The currency depreciated sharply.
There are some abnormal currency devaluations at all times and in all countries, such as Germany after World War I, China and Venezuela during the Republic of China. It is very likely that the money in our hands will become worthless in a short time.
For this abnormal currency depreciation, what we can do is to turn all the money on hand into value-added goods and food. Value-added commodities include some investment varieties such as gold. Changing food is to avoid the situation that we have money but can't buy food.
② Moderate currency depreciation.
The outbreak of the epidemic, the United States printed a large number of dollars, will certainly cause a certain degree of inflation around the world, and the currency will depreciate to a certain extent.
For us ordinary people, the reasonable way to deal with this situation is:
(1) If you invest in yourself, your core competitiveness will be stronger and you can get more labor remuneration.
In fact, we can also avoid risks by investing in financial instruments, such as funds, stocks and option futures. However, these investments require relatively strong professional skills. If you are not a professional, there is no need to "take a chestnut from the fire" in order to preserve and increase value, which may be more worthwhile. But you can learn relevant knowledge and use relevant tools to avoid risks.
To sum up: the depreciation of commodities and currencies has always existed. For us ordinary people, the best choice is to improve ourselves so that the increase or decrease of our labor remuneration can exceed the depreciation of the currency; Secondly, through investment tools, realize the preservation and appreciation of assets in hand (pay attention to prevent risks).