Convert cash into assets as much as possible

Fixed assets such as real estate naturally have the property of solidifying wealth. That is, such assets will appreciate in value with inflation. Therefore, in the current era of inflation, individuals should try to keep as little cash as possible, except for the cash necessary for daily expenses.

It is better to convert large amounts of money into assets. Those with a relatively large amount of funds can purchase real estate directly, but they must also be mentally prepared that such assets will be difficult to realize in the short term. If you have a relatively small amount of funds on hand and want to participate in investment in the real estate sector, you can try investing in some real estate-related financial products. This type of investment has a low initial threshold and can be redeemed at the end of the closed period, making it relatively more liquid.

In addition to fixed assets such as real estate, you can also consider some equity investments, such as listed company stocks, index funds, etc. However, this type of investment requires relatively high professional quality from investors and requires time and effort to read. Financial reports, research reports, and market trends must be paid attention to at all times. If you don’t have the time and energy, you should leave the professional matters to professionals, make fixed investments in some low-valuation broad-based index funds, and buy them at regular intervals. Judging from historical data, as long as the time is long enough, the returns of long-term fixed investment funds are still acceptable! Moderate borrowing

Inflation will cause a transfer of social wealth, that is, the wealth of creditors will be transferred to debtors. It’s easy to understand. If you borrowed 1,000 yuan from a landlord 20 years ago, you could buy a cow with 1,000 yuan. Today, 20 years later, if you return the same 1,000 yuan to the landlord, it would probably only be enough to buy a cow leg.

That is, the borrower borrowed real money at the beginning, but will pay back worthless banknotes in the future. Even though the creditor's book wealth has increased, his actual purchasing power has decreased!

So under inflation, ordinary people who borrow moderately to purchase some assets can still have a strong effect in resisting inflation!

This article is the original work of investment consultant Wu Peng. The above content is only for learning and communication and does not constitute any investment advice. We hereby declare! If you think the content makes sense, please give it a like and follow it. Thanks in advance!