Preface
With the changes of the times, people's lifestyles are constantly changing. In the financial sector, as the one-year deposit rate enters the "1 era", more and more people are beginning to realize that the traditional way of managing money may no longer be applicable. The FIRE movement, or the idea of "financial independence, early retirement", has also waned in this context, and the decline in financial returns has also made people more conservative about investing. In this environment, people have also generated various speculations about the future trend of financial management, the most concerned of which is whether banks will enter the era of "zero" interest rates.
1. The one-year deposit interest rate has entered the "1 era"
Since 2015, the one-year deposit interest rate in the eastern countries has been maintained at a low level, and even lowered in 2019, which directly caused the one-year deposit rate to fall below "1%". In 2020, due to the impact of the new crown epidemic, the central bank also lowered the benchmark deposit interest rate many times in order to stabilize economic growth, which eventually directly caused the one-year deposit interest rate to fall below the "1 era" and came to the level of 0.35%.
Such a low interest rate environment is undoubtedly a huge blow to ordinary savers, because in this case, the traditional savings and financial management methods have been unable to meet their needs for wealth appreciation, and in such an environment, more and more people have begun to look for new financial management methods, and they also hope to be able to obtain stable income in such an environment.
Second, the FIRE movement has weakened in China
In such an environment, more and more people are beginning to realize that traditional financial management methods can no longer meet their needs, and they are also beginning to look for new financial management methods. In the process, the FIRE movement has gradually become well-known, and the core of this concept is the hope that through rational consumption and scientific investment, financial freedom can be achieved, and finally the goal of early retirement will be achieved.
In the past, the FIRE movement has also set off a craze in China, and more and more people have begun to pay attention to this concept and try to apply it to their own lives. However, with the continuous decline of one-year deposit interest rates, it has also directly led to the gradual weakening of the FIRE movement in China, because in such a low interest rate environment, it is undoubtedly very difficult to achieve financial freedom through simple savings and investment, and this has also made more and more people begin to maintain a relatively conservative attitude towards investment.
Third, the income of wealth management has declined, and investment has become conservative
In such an environment, more and more people are beginning to realize that traditional financial management methods can no longer meet their needs, and they are also beginning to look for new financial management methods. In this process, many people have also begun to try some new investment methods, such as stocks, funds, gold, etc., hoping to obtain higher returns through this way.
However, these investment methods are also accompanied by certain risks, and in such an environment, many people have begun to become relatively conservative about investment, pay more attention to the safety and stability of investment varieties, and hold a certain wait-and-see attitude towards high-risk investment varieties.
Fourth, the future may move towards "financial wealth"
In such an environment, more and more people are beginning to realize that traditional financial management methods can no longer meet their needs, and they are also beginning to look for new financial management methods. In this process, many people have also begun to try some new investment methods, such as stocks, funds, gold, etc., hoping to obtain higher returns through this way.
In this process, some people have begun to try the concept of "financial wealth", they believe that in such an environment, in order to obtain stable returns, they must take the initiative to find investment opportunities, rather than simply waiting for the income to come by itself. The so-called "financial wealth" does not refer to simple speculation, but hopes to find real potential investment targets through in-depth financial knowledge learning and deep insight into the market, so as to obtain stable returns.
V. Challenges
Although "financial wealth" may seem like a good choice, in real life, it is not easy to obtain stable income through investment, and it also comes with considerable risks.
With the continuous decline of one-year deposit rates, more and more people have begun to try to invest, and in such an environment, it is easy to have a certain market bubble, once the market bubble bursts, it may directly lead to huge losses for investors.
With the continuous decline of interest rates, it may also directly lead to inflation, and in this case, the purchasing power of the RMB will also be affected to a certain extent, which is undoubtedly a very big test for ordinary people.
6. Whether banks will enter the era of "zero" interest rates
In such an environment, more and more people have begun to speculate about the future trend of financial management, and the most concerned is whether banks will enter the era of "zero" interest rates.
If banks really enter the era of "zero" interest rates, it will undoubtedly be a very big blow to ordinary depositors, because in such a situation, they will not be able to get any income from the cash they keep in the bank, and on the contrary, there may be a shrinkage of wealth due to inflation.
In such an environment, more and more people are beginning to look for new ways to manage their finances, such as virtual currency, overseas investment, etc., and this will undoubtedly have a certain impact on the bank's deposit business, because in such an environment, people may be more inclined to keep cash at home rather than banks.
epilogue
Whether from an individual point of view, or from the perspective of the whole society, the one-year deposit interest rate into the "1 era" is undoubtedly a very big challenge, because in such an environment, people's financial management concepts may undergo earth-shaking changes, and they are also beginning to look for new ways to manage money.
In this process, both financial institutions and ordinary investors need to maintain a high degree of attention to the economic situation and policy changes at home and abroad, and adjust their financial strategies in a timely manner, so as to be able to find a truly suitable investment target for themselves and obtain stable income in such an environment.