What do ordinary people do when the currency depreciates?

When it comes to the reasons for currency depreciation, we must first know what the reasons are.

The most intuitive explanation of currency depreciation is the decline in purchasing power, which is commonly known as "money is hairy" and "money is worthless" in the mouth of ordinary people. Why is this happening? There are two main reasons:

The first is currency overshoot. Generally speaking, you can refer to the indicator "M2/GDP". For example, all the goods in the whole market are worth 100 yuan, but many people buy goods with 1000 yuan, which will lead to "more money and less goods" and "demand exceeds supply", and the currency has exceeded the value of goods by ten times.

The second is the scarcity of goods. For example, there used to be 10 items worth 100 yuan in the whole market, but now there are only five items, so people who want to buy goods will definitely pay 100 yuan more, which will also lead to "more money and less goods" and "demand exceeds supply".

Ways to deal with currency depreciation Knowing that the reasons for currency depreciation generally come down to "more money and less goods" and "demand exceeds supply", then we can generally find some ways to deal with it. Some people often say "open source and reduce expenditure". Personally, I think if we have the ability and consciousness to do so, why wait until the currency depreciates?

During the period of currency devaluation, the first thing is not to be stingy with your money and spend it immediately. You can buy some relatively expensive goods that you are reluctant to use and often use. Because money reflects the present value, one month's salary will be consumed immediately, so that the value of money will be brought into play and will not depreciate. Of course, this is not to encourage excessive consumption.

Secondly, cash will be converted into risk-free and extremely low-risk fixed products, such as government bonds and large bank deposit certificates. These do not need professional financial management knowledge, nor can they outperform the broader market, but they have a certain anti-inflation effect.

Finally, by studying more at ordinary times, accumulating some financial knowledge and managing funds, we can not only cope with currency depreciation for a long time, but also preserve and increase the value of funds in our hands, thus forming habits and further moving towards the road of wealth freedom.

Conclusion Both currency depreciation and inflation are normal social phenomena with the continuous development and progress of society. Therefore, there is no need to treat these normal phenomena as fierce as the economic crisis. Only by accumulating more knowledge and arming yourself at ordinary times can we calmly deal with all kinds of unexpected situations.

* * * If you have any questions about financial management, funds and stocks, you can always pay attention to me or trust me privately, share your little knowledge every day, and * * * grow and progress together * * *

Currency devaluation is an indisputable fact. The previous 30 yuan can support a family. Thirty dollars can't even afford a pack of good cigarettes now. In the past 30 years, the economy has developed the fastest, but the currency has depreciated quickly! Real currency depreciation is beneficial to economic development, while uncontrolled currency depreciation is a disaster. For example, Venezuela's money has become waste paper. In recent years, prices have risen, pork has skyrocketed, and house prices have gone against the sky. The money in the pockets of ordinary people is getting less and less valuable. In fact, to be honest, ordinary people really have no good way to deal with currency depreciation! In fact, the only wish of "leek" is to slowly cut the sickle and gently cut the knife, and never cut on the same root!

Anyway, let's first look at why the currency depreciates. What can the bottom people do to deal with currency depreciation?

The reason for currency devaluation is simple. Generally speaking, there are only two reasons for currency depreciation, that is, money is worthless. For example, Venezuela's money has become waste paper, and it is useless to go to the toilet because the "quality" is too good.

Two main reasons for currency devaluation:

The first reason: more money, the total amount of money in the market greatly exceeds the value of the total amount of goods in the market. For example, the value of goods in the market is 100 yuan, and as a result, you issued 1000 yuan, so the currency depreciated by 10 times.

By the way, I want to tell you something. Our currency has exploded in recent years, and the total amount of m2 (broad money) has exceeded the sum of Europe and America.

Second, there are fewer goods on the market, but the demand is still strong, so according to the supply and demand principle of economics, the price of goods will automatically increase!

This is probably the case with pork prices. Free-range farms in rural areas have been cancelled, and external imports are facing epidemic pressure. But people in China are big consumers of pork, so the price of pork has soared!

To extend: some people will question why house prices have risen so much.

1, someone stopped him from falling because the income from land sales was too large.

Most of the money is in real estate. If house prices fall, this part of the funds will flow into the market and prices will soar.

People who have no permanent property will have no perseverance, so people who need to repay their mortgage every month are safer and more stable than society.

In a word, the two main culprits of currency devaluation are: printing too much money and the shortage of goods.

How do ordinary people deal with currency depreciation? To tell the truth, people at the bottom like you and me really don't have any good ways to deal with currency depreciation. Some people say that money will depreciate if you don't save money, but what if you suddenly get sick, what if your child goes to school, and what if there is something urgent? This move is obviously not reliable.

There are still many "experts" talking about investing, speculating in stocks, using Qian Shengqian and so on. I just want to say, if we can all operate these things to make money, are we still at the bottom? Don't we become financial experts? This is obviously a sign that it is easy to stand and talk.

Let me tell you two most practical ways to resist currency depreciation for Chinese chives:

The first and most important one is to constantly learn and accumulate knowledge and practical skills to make yourself more valuable.

Everyone should understand this! It means that you can earn more money whether you do part-time jobs or small businesses. To put it bluntly, it is to make a cylindrical "leek", so that there is something left after the sickle is cut.

Second, if you have spare money, you can invest part of it in fixed assets. I have also seen through these years, saying that house prices have fallen. In fact, house prices have not fallen at all.

At present, buying a house can still effectively fight against currency depreciation, not to mention the pressure of mortgage will gradually become smaller in the case of currency depreciation. For example, your monthly salary is 5000 and your mortgage is 2500. But a few years later, your salary became 10000 yuan, and your mortgage was still 2500 yuan. Actually, you deserve it.

Finally, I want to say that as an ordinary person, there is no good way to make money in the face of currency depreciation! Strive to be a wildfire that has never exhausted them, and they are tall again in the "leek" of the spring breeze! 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.

The above is my opinion, I hope it will be helpful to you. Welcome to discuss it together in the message area.