Investment Reading Notes: "The Psychology of Money", a Terrifying Fact, Mostly Separate deposits will be reset to zero!! Brothers, have you ever thought that the money you have worked hard to save for a lifetime may eventually go to zero? It may sound a bit scary, but it could really become a true portrayal. I recently read Morgan Hauser's "The Psychology of Money", and at the end of the book, the author wrote this viewpoint: in this era, many people seem to be making money, but in reality, they are "resetting" their wealth. People's understanding of money often lags behind the changes of the times. When the economic environment undergoes drastic changes, if our financial management methods remain in the past, it is easy to fall into the trap of zero wealth. 01. The evaporation of savings under the heavy pressure of life A few days ago, I chatted with an old classmate. He said, "I earn 20000 yuan a month and work hard in Beijing, which makes me seem like a high-income group. But I have to pay 6000 yuan for rent and spend over 1000 yuan on commuting every day. In addition to daily necessities such as firewood, rice, oil, and salt, the amount of money I can save by the end of the month is pitifully small He is not the only one experiencing such a predicament. On Tiktok, someone calculated a "life bill": the monthly salary is 10000 yuan, the total income is about 4 million yuan after working for 30 years until retirement. It may sound like a significant amount, but upon closer calculation: -Raising children and caring for the elderly: 1.5-2 million -Buying and renovating a house: at least 1 million -If buying another car: starting at 300000 yuan -In addition, monthly necessities such as firewood, rice, oil, salt, clothing, food, housing, and transportation are provided -There may also be medical expenses .. By calculation, not to mention saving money, being able to avoid debt is already quite good. And this is still a relatively high-income group. In reality, more people's incomes are far from reaching this level. Some families are willing to take out loans to buy school district houses for their children's education; Some people grit their teeth and buy large apartments just to live together for several generations; Some people have only been working for a few years and have already taken on various consumer loans .. Why is this happening, how can we save ourselves? There is nothing new under the sun, history always repeats itself astonishingly. Our current problems have also been solved by other countries. Perhaps by looking at other people's test papers, we can find our own answers. 02. The Road Traveled by the United States: Spring River Water Warmth, Ducks Don't Know The path taken by American consumers may give us some inspiration. In the 1950s and 1960s, the United States experienced a golden age of 'everyone is middle class'. At that time, there was not much difference in lifestyle between ordinary Americans who drove Chevrolets and wealthy people who drove Cadillacs. Income growth is fast, social distribution is relatively fair, and even with mortgage and car loans, people don't feel any pressure. But since 1973, everything has changed. This is the beginning of a new economic era. The money started flowing into completely different pockets. Those who master new technologies and opportunities experience rapid income growth. However, the income of ordinary people is constantly decreasing. Data shows that over the past decade, the income of the top 1% of society has increased by 18%, while the income of the vast majority of people has decreased instead of rising. What's even more alarming is that people's consumption habits and life expectations are still stuck in the old era of 'everyone can live a middle-class life'. Seeing a few people living in big houses, driving luxury cars, and their children attending private schools, others also want to live like this. But what if there is no increase in income? We can only rely on borrowing. This leads to a terrible phenomenon: the highest income group only has debt expenditures accounting for 8% of their income, while the lower income group has this proportion exceeding 21%. The times have changed. Wealth is accelerating towards the new economy, and if ordinary people still maintain their old consumption habits and life expectations, they are likely to fall into the trap of "not making ends meet". Even worse, once heavily indebted, it becomes even harder to have the opportunity to participate in the new economy. This lesson is particularly important for us now. Look around: new energy, artificial intelligence, biotechnology ..... Wealth is rapidly concentrating in these new areas. What does this mean? Job opportunities and income growth points are quietly shifting. At this time, a large number of families are burdened with heavy mortgages, which was once the predicament of the American middle class. When the economic structure undergoes a transformation, the previously stable job income becomes unstable, but the monthly debt remains fixed. Once trapped in this "high leverage, low growth" dilemma, not only will there be no spare capacity to seize new economic opportunities, but even basic living will be stretched thin. In this era of accelerated wealth flow, we need to be more proactive: On the one hand, we should approach debt rationally and act within our means; On the other hand, we also need to be proactive and plan ahead for the opportunities brought by the new economy, otherwise we may be left further and further behind in the industrial transformation. 03. The Road Japan Walked: The Disappearance of Stable Jobs If the experience of the United States has shown us the risk of a "debt trap," then the current situation in Japan has brought us another warning: job instability may be the bigger crisis. After the 1990s, the Japanese economy continued to be sluggish, and a large number of formal jobs were replaced by temporary workers. This has brought about a series of chain reactions: without stable jobs, there can be no stable income; Without stable income, it is impossible to plan for long-term living; Unable to plan for long-term life, many choices in life will be limited. As a result, there are more and more unmarried and infertile people, and there are also more and more young people who are "dependent on their elders". What is even more unexpected is that when parents enter old age and need care, these people who rely on their parents' pension for their livelihood have to give up job opportunities to take care of their parents. A vicious cycle is thus formed. Data shows that as many as 1.03 million people in Japan's 40-50 age group choose to "squat at home". The number of such 'hidden poor' continues to increase. This is not just an isolated case. When economic growth slows down, industrial structure adjusts, job opportunities decrease, and income expectations decline, many people's lives will fall into such a predicament: Overdraft today and repay tomorrow. Overdraft tomorrow and repay the debt the day after tomorrow. Until one day, I can no longer afford it. So when we talk about the risk of "zero deposits", we should not only see the direct pressure brought by high debt, but also be wary of the uncertainty of income sources. Because once we lose a stable source of income, even a small fixed expenditure can become the last straw that overwhelms us. Think about it, are we also experiencing a similar transformation now? Big Internet factories have laid off workers, small and medium-sized enterprises have difficulties in business, and the 35 year old workplace crisis The uncertainty of work is increasing. What is even more alarming is that many people have taken on huge debts through mortgage and car loans even when their jobs are relatively stable. Once you lose your job, not to mention mortgage payments, even basic living may face problems. especially those Families that take care of both the elderly and children face greater risks. So, when we are worried about high housing prices and inflation, what we should pay more attention to is: -Can our job skills adapt to the rapidly changing economic environment? -Have we reserved sufficient funds and energy for possible career transitions? -Have you considered the risk of income interruption when taking on debt? After all, 'zero income' is a more terrifying risk than 'debt ceiling'. In this era, the biggest risk is not 'zero deposits', but' zero thinking '. If we still cling to the old mindset of 'buying a house to preserve value' and 'working nine to five', we may miss out on more opportunities. We need to remember that open source is not for debt consumption, but for having more choices in this era of change. When we have more resources in our hands, we will be more calm when facing changes. 04 written at the end When we talk about the risk of "zero deposits", we are not just talking about money, but also about the direction and choices of life. Don't just bury your head in the rush and forget the direction. Only by getting the right direction can we reach the other side of our dreams faster. As Steve Jobs once said, "Don't confine yourself to the present reality, expand your boundaries Perhaps you are currently worrying about your mortgage and the future. But what matters is not where you are now, but where you are heading. As long as the direction is correct, every small action is opening up new possibilities for oneself. In this turbulent era, may we all become the masters of life, rather than the fallen of the times. Finally, a piece of advice for young people is to invest in BTC, not for the fantasy of overnight wealth, but for long-term observation and layout of a new asset logic. Buy a 'low-cost ticket' to the future financial landscape with spare money that does not affect daily life. Give a like and wish the brothers who see here a better future.