Think of ten thousand yuan households in the 80's, it can be really solid "Tuhao". However, now ten thousand yuan can be counted as "Tuhao" we all know that inflation is fierce like a tiger! Remember when I was a kid (late 90's) a Popsicle was 20 cents and a pair of sandals was only 8 bucks. Now the cheapest ice cream bar is a piece, and a pair of shoes can cost hundreds. Think carefully, ten years later our hundred thousand is not like the ten thousand Yuan households? Today we're going to do the math and see how much $100,000 is worth in 10 years.
A university professor came to the conclusion after research, that ten thousand yuan is equivalent to the current 2.55 million, and the current one hundred thousand yuan ten years later will be the lowest value of thirty-five thousand!
In recent years, the annual inflation rate has been between 1.4% and 5%, but the real rate is much higher. Based on real inflation, 100,000 yuan will shrink to 54,000 yuan in 10 years. What's even scarier is that, based on the amount of money being issued, 100,000 yuan will only be worth 35,000 yuan in 10 years.
In short, for whatever reason, it has become an indisputable fact that our money is rapidly losing value. If we hold on to our money so tightly, it will lose its value.
So we need to make money make money to fight inflation. There is no doubt that investment and financial management is the best way to prevent currency depreciation.
When it comes to investment and financing, many people will think it is unfathomable, but in fact, investment and financing is not difficult, as long as we master certain methods, seize the opportunity, let our assets value preservation and increase is relatively simple.
First of all, we should divide our money and other assets properly. According to the Standard & Poor's household Assets quadrant. Our assets should be divided into four main types. They are the money to spend, the money to survive, the money to protect the value of the money and the money to generate money. According to the proportion, it is not difficult to see that the capital appreciation and money generated accounted for 70%.
How to plan this money, according to the above quadrants, let's give a brief introduction.
What types of money can we choose to break even? Bank financing, money funds, national debt, trust and P2P. The reason for choosing these types is that in the actual investment, these types are able to break even and earn interest. For example, the return of bank finance is about 4% (the following are the annual interest rate), the return of Yu 'e Bao has also exceeded 4%, and the return of trust and P2P will be higher. For example, the annual interest rate of a one-year product is 10.5 percent.
In addition, the value of the appreciation of the capital gains, rather than earnings. In other words, compared to investments, these types of returns are not very high, but they are very stable, so they account for the highest proportion.
The money that makes the money is the yield, but there is an old saying in the investment world that high yield is always accompanied by high risk. For example, investing in stocks, funds, precious metals, futures, real estate and so on. Although sometimes the returns can be very high, even multiplied. But sometimes the yield is so low that it eats up the principal. Therefore, for the money, we should learn a certain professional basic knowledge, never reckless.
A $100,000 devaluation of 2-3 times in 10 years is shocking, but if we start now, plan our financial quadrant and allocate our assets well, it is possible to beat inflation.
