2 Latest Investment Trends
The reason the rich don't deposit money in banks or invest in homes: These two methods are so outdated! Below are 2 latest investment trends.
According to experts, in the next 10 years, houses and cash will depreciate, instead of the "throne" of these two factors.
Currently, most people have two ways to accumulate wealth. The first is to keep it in the bank, mainly in cash; the second is to choose to buy a house and invest, so that the family\'s assets are preserved, or even profitable... For this type of method, the second method is definitely the most chosen, which is to buy house and invest to preserve value, then have a small amount of cash available to prepare for emergencies.
2 latest investment trends / ph: pexels
Currently, this approach is much more outdated than it used to be.
Storing cash is like "throwing money out the window"
First of all, cash is now inevitable the reality of less and less value.
Why does cash depreciate? The explanation for this question can be encapsulated in one sentence: "When the money supply is too much, money will increasingly depreciate". Many people may not understand why this is so. For a better understanding, a specific case can be taken as follows. For example, the total amount is only $1,000 while there are 1,000 items left, the price of these 1,000 items is $1 each. But if the total amount is now $2,000 and the goods are still 1,000, when you want to buy goods, you have to pay $2.
Compared with the past, this fact can be clearly seen. We make more money, but at the same time, the prices also go up, so even with a lot of money, life is not necessarily better.
It can be said that for cash, devaluation is a very normal thing. So keeping all the cash on hand is an unwise choice, keeping cash means waiting for your assets to slowly depreciate.
As for investing by buying a house, it was certainly a very good direction in the past, but now, the real estate market has had great fluctuations. Because in the past housing prices increased very quickly, after investing and buying a house, after two years of waiting for the price to increase, you can make a profit from it.
But right now, house prices are already very high, which can be seen from the house price-to-income ratio. The so-called house price-to-income ratio is the ratio of a family\'s total housing price to that household\'s disposable income. Currently, especially in urban areas, apartments are very expensive, not to mention to house. According to calculations, many families even take more than 20 years to have enough money to buy a house, provided that no further expenditures are made.
Therefore, currently, investing in a house is not advisable, the risk of investing in buying a house is much greater than before, and the profit earned is also reduced compared to before. A bank president also frankly said: "House and cash will depreciate in 10 years, and you will feel safe holding two things in your hand." And here they are.
Two things you should hold firmly in hand.
1. Advanced technology
In today\'s trend, in order not to be left behind, we must keep up with the development of technology. This is the first choice, because technology can be applied in all aspects of life. Many people have different levels of education, but that shouldn\'t affect their access to new things.
Today there are many ways to make money with technology. If you are proficient in a certain field, you can completely enjoy life without working anytime, anywhere, at least without having to worry about your job and precarious income as before.
2. Wise financial thinking
Currently, financial management is not only used to buy a house. In society, there are many methods of financial management, but most people only know about buying a house for investing. Because in the past, investing in buying a house was relatively simple, the profit rate was very high. But for now, if you want to invest, you can try with stocks, funds, and other investment methods.
But it is not necessary to invest all the money in a specific area, you can reasonably divide how much money you keep in your hand, how much money you invest in financial management... In this way, when you need money urgently, you may have enough cash on hand. Many people will say this type of financial management option is risky, but buying a home is also risky. When choosing an investment, it is best to choose safely and not get too caught up in seeking short-term profits, otherwise it will be very easy to lose money.
2 Latest Investment Trends
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