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Understanding inflation is very important for investment and financial management, but inflation has little effect on your life


Let's talk about the importance of inflation in investment, here is what you can learn from it:

1. From a long-term perspective, the annual inflation is about 3%, which means that purchasing power will depreciate by half every 24 years.

2. Inflation will affect our assets for a long time

3. The more cash, the greater the impact

4. Divide assets into anti-inflation and non-inflation

5. Remuneration is affected by inflation, but it does not mean that you have to accept low remuneration in order to fight inflation

6. Theoretically, 貸款計算機,the salary will increase with inflation, but in Taiwan, the salary has not actually increased.

Why does inflation have little effect on your life?

The reason is simple: because it will happen, it’s useless to worry

Just like you have to grow old, not just you, but others, whether modern or ancient.

And inflation is like getting old, it will happen,

You just need to be prepared to allocate your assets as best as possible. As long as we don't want a large proportion of people to be cash assets, there is no need for companies at all, so they are afraid of it.

Simply use numbers to prove that you don’t need to be afraid of inflation

If I tell you:

"In 24 years, your salary will be twice what it is now."

You will definitely say: "It's only twice! It's too little, right?"

same:

"In 24 years, prices will be twice as high as they are now."

It also doubled in 24 years, not too much, right?

Mr. Market believes that the reason why many people reacted violently is that, besides media rendering,

Because human beings have the characteristic of avoiding loss,

We hate losing money more than losing money,

So every time the price rises, people will naturally react fiercely, nothing more.

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