1. Be cautious about consumption and treat inflation rationally For many people, there is currently structural inflation in China, and commodities continue to exist. Vegetables, fruits, edible oil and other daily necessities are at a high level. In this case, many people may feel that it is a reasonable choice to take out their money for consumption, especially given the low interest rate on bank deposits. However, in an environment of high inflation, household consumption spending will also increase significantly. Therefore, by controlling excessive consumption, saving this money, and spending it when inflation levels fall, you can get more goods and more material comforts.
2. Prudent investment in real estate to avoid the risk of taking over the marketIn the past, it was generally believed that the real estate market would be differentiated, and the housing prices in the first and second-tier cities would be the first, and the housing prices in most cities would be the first. However, since entering 2023, we have found that housing prices in first-tier cities are also **. Taking Shanghai as an example, the housing prices in the central city were originally more than 100,000 square meters at the peak, but now they have fallen to 60,000-70,000 square meters, and some even to 50,000 square meters. This means that housing prices in the central areas of first-tier cities will also be sharply**, and the real estate bubble will also burst. Therefore, those who intend to invest in property should exercise caution and refrain from buying any more properties, otherwise it is easy to become a "pick-up man" and fall into historical highs and find it difficult to get out.
3. Avoid excessive debt accumulationMany families are now burdened with a large amount of debt, mainly housing loans, car loans and consumer loans. However, in the current economic environment, we recommend trying to avoid excessive debt accumulation. Due to the overall economic situation, life will become more difficult if you owe too much debt and experience difficulties such as business failure or job loss, let alone paying off your debts. Therefore, we urgently need to pay off our arrears as soon as possible to achieve the goal of being debt-free and lightweight.
Fourth, be cautious about starting a business and avoid poverty due to entrepreneurshipAt present, many young people decide to use their family savings for many years to start a business because it is difficult to find a job. They believe that by starting a successful business, they can become their own boss. However, in reality, the probability of entrepreneurial success is very low. There are two main reasons why most people fail to start a business: on the one hand, in today's traditional industries with severe overcapacity and fierce peer competition, the probability of success for those who have just entered these industries is very low. On the other hand, after the pandemic, many people's incomes have decreased and consumer demand has also declined. Therefore, the ease of starting a business can lead to poverty as a result of starting a business.
Fifth, prudent financial investment, to avoid lossesNow many people feel that the interest rate on bank deposits is declining, and financial investment is more appropriate. However, most people have encountered losses when making financial investments, mainly due to two reasons: first, the current investment environment is not good, and there are also large-scale losses, and even bank wealth management products are no longer guaranteed principal and returns. Secondly, many people lack financial knowledge and experience, and the possibility of losing money naturally increases when blindly investing in high-risk products. Therefore, although the interest rate on bank deposits is constantly falling, at least there is a guarantee that the principal and interest will not be lost.
2023 is full of challenges and difficulties for many people, facing problems such as reduced income, difficulty finding jobs, housing prices**, etc. Therefore, entering 2024, we must be prepared for "asset depreciation". Next year, we should avoid excessive consumption and treat inflation reasonably. Be cautious about investing in real estate to avoid becoming a "pick-up man". Avoid excessive debt accumulation and strive to be debt-free. Be cautious about starting a business and avoid poverty due to entrepreneurship. Be cautious about your financial investments and avoid losses. Through the above examples, everyone can fully understand the seriousness of the problem. Of course, this is only a few possible solutions based on the current environment and conditions, and it cannot be said that it will happen in the future. But either way, it's always right to be mindful of everything. Finally, I hope that everyone can do a good job in asset management and reasonable financial planning in the new year to meet a better tomorrow!