Inflation, health status, strategic spending, overconsumption, and four major problems on the road t

Mondo Finance Updated on 2024-01-30

On our way to retirement, we will encounter four obstacles. The four roadblocks are inflation, health, strategic spending, and excessive consumption. They belong to objective factors and subjective factors respectively, which are beyond the ability of individual control and can be subjectively controlled. Inflation and health are objective factors that are beyond the control of the individual; Strategic spending and overspending are subjective factors that we can control. From the point of view of social and personal factors, inflation and strategic spending are social factors and are common problems faced by the majority of the inhabitants of society, while health and overconsumption are personal factors and are related to each person's own situation.

Inflation leads to a decrease in prices** and the purchasing power of money. While it may mean economic growth, it is not friendly to retirees. It is difficult for retirees to enjoy salary benefits, and inflation will directly raise prices, reduce the purchasing power of money, and dilute the savings in the hands of the elderly.

As we age, good health becomes a luxury. If you have a physical problem, you will inevitably have to go to the hospital. Medical expenses are expensive, and basic medical insurance coverage is limited. A serious illness is likely to quickly drain pensions.

Too much large strategic spending can affect pension savings. Buying a house, buying a car, getting married, giving birth, and educating children all require a lot of money. These strategic plans are both important and urgent goals, but although pensions are important, they are not so urgent. If you don't manage your strategic expenses well, you won't be able to save your retirement money, and you may not even have the emergency money to deal with emergencies or illnesses before you retire.

Excessive spending can undermine financial health and create bad spending Xi. There is nothing wrong with being kind to yourself, but if you develop the Xi of excessive consumption, it is actually the elderly self who pays for it - being kind to the current self may be harsh on the elderly self.

There are so many obstacles on the road to retirement staring at our money bags, which makes people feel anxious and uneasy. But in fact, there is no need to panic, as long as you master the coping methods, you can break them one by one. Reasonable pension investment can outperform inflation; The correct use of insurance and other tools can hedge against the uncertainty of health status; Do a good job in planning large amounts of funds in advance and carry out pension account management, and can calmly cope with strategic expenses; Adjusting consumption concepts and developing reasonable consumption Xi can avoid excessive consumption. For more information on how to do this, please refer to the later chapters of this book.

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