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Because of the pandemic, more and more people are starting to save money in case something unexpected happens. In response to the situation of ordinary people's deposits, on a forum, Alibaba founder Jack Ma issued a latest remark, which is more like a thought-provoking prophecy.
He pointed out that ordinary people with savings in their hands will face three harsh realities in the next two years. What are these three realities? Let's dive in.
Inflation puts pressure on us
In recent years, changes in the global economic environment have made inflation a problem that cannot be ignored. Inflation, in simple terms, is the increase in prices caused by an increase in the money supply. This means that fewer goods and services are now purchased with the same amount of money than in the past. This is a huge threat to ordinary people who have savings on hand.
First, inflation causes people's real purchasing power to decline. For example, in the past 100 yuan you might be able to buy a basket of fruit, but now you may only be able to buy half a basket. This means that although your deposit number has not changed, its real value has decreased.
Second, inflation also affects people's cost of living. As prices rise, various expenses in daily life, such as rent, transportation, food, etc., will increase. For many families, it could mean they have to work harder or cut back on other expenses to cope with the increased cost of living.
In addition, inflation can trigger fluctuations in the value of assets. In the case of real estate, stocks, and other investments, their prices can be affected by inflation, causing their value to rise or fall rapidly. This poses a significant challenge for individuals seeking to preserve and increase the value of their assets through their investments. They must be more cautious when choosing investment projects to avoid potential risks.
In addition, inflation may also lead to a decline in the interest rate on bank deposits. When prices rise, banks may raise deposit rates in order to attract deposits. But as inflation continues, banks may not be able to maintain high interest rates, resulting in fewer real returns on deposits. This means that even if you earn a certain amount of interest on your deposit in the bank, due to inflation, these interest may not offset the loss caused by rising prices.
Finally, inflation can also affect a country's economic policy. In order to control inflation, the government may take a series of measures, such as raising interest rates and reducing the money supply. These measures may have an impact on economic growth, employment and other aspects, further exacerbating the stress of ordinary people's lives.
Don't rely solely on bank deposits or start a business blindly
Against this backdrop of inflation, bank deposits are no longer a safe and stable investment option. Although bank deposits appear to be safe, their real earnings have been eroded by inflation. Simply put, your deposit in the bank may depreciate due to rising prices.
Ma has raised this issue in public on several occasions. He believes that for ordinary people, relying solely on bank deposits is not enough. He suggested that people should be more active in looking for other investment channels, such as stocks, real estate or other financial products, to preserve and increase the value of wealth.
In addition, as the interest rate on deposits in state-owned banks has decreased, the attractiveness of deposits has further diminished. Low interest rates mean that real returns on deposits will be more limited and may even be lower than inflation. This situation not only prevents deposits from providing a stable income, but may also lead to a decline in wealth.
In the current economic environment, entrepreneurship and investment have become more challenging. While there are still many opportunities in the Chinese market, entrepreneurs and investors are at greater risk due to inflation and other macroeconomic factors.
Ma Yun once pointed out that the goal of entrepreneurship is not only to chase wealth, but more importantly, to realize personal dreams and values. However, in the current economic environment, entrepreneurs need to be more cautious to ensure that their business model is viable enough to stand out in a competitive market.
Investors must now pay more attention to choosing the appropriate investment path. Traditional investment methods, such as real estate or stocks, may no longer be as attractive as they once were. Ma suggested that investors should focus more on industries and companies with long-term growth potential rather than pursuing short-term profits. In addition, Ma Yun also stressed the importance of education. He believes that only by constantly learning and improving themselves can people meet the current economic challenges and find new opportunities and possibilities.
Secondly, we should constantly learn and improve ourselves. In a rapidly changing world, only those who are constantly improving can remain competitive. Jack Ma once said that education is the key to solving future challenges. We should invest in ourselves and make sure we can find new opportunities in any situation.
Finally, we should remain optimistic and positive. While the future may be uncertain, if we are prepared, we can rise to any challenge and create a better future.
Epilogue:
In Ma's prediction, the economic environment in the next two years is indeed full of challenges for ordinary people with savings in hand. But that doesn't mean we should feel hopeless or fearful about the future. Instead, we should be more proactive in preparing and responding.
First, we need to re-examine our finances to ensure that our funds are being allocated appropriately. This may mean that we need to reduce unnecessary overhead or look for new investment opportunities.
- Author: Wynne
- Editor: Canghai