Your Savings Are Less Than You Think: Facing Inflation, Your Assets Are Constantly Depreciating

People with higher salaries are wealthier (X)

With wrong spending habits, a manager can be poorer than an entry-level employee (O)

Measuring expenses decades later by today's prices (X)

Due to inflation, past savings are constantly depreciating (O)

As raw materials rise, prices soar all the way.

The money that bought a piece of fried chicken when you were a kid can't even buy a pearl milk tea now!

Not to mention a life where income and expenditure barely break even, you still have to consider the costs of buying a house, a car, marriage, raising children, insurance, and medical treatment...

Can you imagine yourself 30 or 40 years from now, with only expenses and no income?

If you don't understand financial management, financial freedom is not guaranteed, but a bankruptcy crisis is certain!

◤What should you do when budgeting in advance goes against your wishes?◢

【Mental Accounting Method】

Only allow yourself to withdraw for consumption from a dedicated income account, and treat savings accounts, stock accounts, fund accounts, and retirement accounts as "forbidden zones" for spending.

【"Self-Enjoyment First" Strategy】

Withdraw 10%–15% from your income for savings first, and then force yourself to live on the remaining income. Since savings have been made, the remaining income can naturally be spent freely according to your own wishes.

◤There are tricks to investment and financial management; don't blindly follow the crowd!◢

【Buying Real Estate】

Determine the rationality of housing prices from the "rental return rate" and the "ten-year house price chart."

Cheap when no one buys, expensive when many buy.

Only buy property in big cities: in areas with slower economic development, there are no tenants to support the market.

Pay a 50% down payment, and the repayment period should not exceed 7 years.

【International Funds and Stocks】

▍When the stock market crashes by more than 50%, start accumulating monthly.

All international stock markets generally follow a 7-year cycle, namely peak—trough—peak.

Don't be anxious at the trough; invest a fixed amount regularly every month for 3 to 5 years, and you can generally earn 1 to 2 times the return.

▍When the market is booming, it is already close to the peak; you can follow in, but it is a short-term move—sell within three months to half a year.

Once the market crashes, it can drop 30% on the first day and 50% a few days later. If you don't seize the opportunity to sell at the peak, you may be trapped.

【Bonds and Bank Deposit Interest】

When bank interest reaches more than 5%, customers can do nothing, because interest above 5% is already a reasonable rental return rate for real estate.

When interest rates have a long-term downward trend, buying bonds that can reach 5%–7% interest is also a stable and risk-free way.

◤Don't use "no money" as an excuse; everyone has their own exclusive financial plan!◢

【Even with a monthly salary of only 30,000 TWD, finances can be properly allocated】

Salary-earner financial formula = 50% steady defense + 25% steady attack (low-risk investment) + 25% strong attack (high-risk investment)

【How to gauge investment proportions? Use the "80 Rule"!】

Subtract your current age from 80 and multiply by 100%; this is the proportion to invest in risky assets.

[Book Features]

Some people squander money when they are young without considering their economic situation decades later, leading to a helpless life after retirement; some people work hard and live frugally but can never save money; some people intend to buy a house or a car but don't know how to take the first step. This book formulates a set of the most perfect financial management methods for office workers at different salary levels and age groups, enabling readers to handle various economic problems and crises with ease.