Ninety-nine percent of us may not understand why we work so hard and are often stretched thin.

Why is it that our wages are rising, but we can never keep up with the rate of price increases? If you feel the same way, try to think about it, what is wealth?

If, you think it's money, then sorry, you're very wrong.

Money is just a currency, it is used to buy things, that is essentially money is a medium of exchange with materials, and its value depends on its purchasing power.

If you're in Zimbabwe and you have a hundred trillions, doesn't that sound like a lot of money? But when converted into RMB, it is only 20 yuan, so money is not wealth, so what is wealth?

If you don't understand it, you'll be poor for the rest of your life.

When I was a child, we had a relative who was particularly rich, because he worked in a state-owned enterprise and could earn 3,000 yuan a month, which was a high-income family at that time, but to this day, this relative's family still has this income, so he has become a poor household.

Why? Because income and money have not changed, they have become poorer and poorer as a result. Many historical stories will tell you that you are poor because you don't work hard, or you are not motivated, but I don't think that's the case.

It's because they don't understand economics, I'm sure you've seen migrant workers who get up early every day and stay up late, don't you think they don't work hard? The real reason behind each of them carrying a heavy burden and struggling to move forward is because the speed of making money cannot keep up with the speed of rising prices.

I remember that when I graduated from college, a classmate wanted to take his girlfriend to live outside, so he bought a house, and the down payment in the Binhai Development Zone at that time was 100,000, because it was still a little short, he thought about waiting to buy again, but the house price rose much faster than his own promotion and salary increase, so he didn't buy a house for three years after graduation, and even his girlfriend who dated in college broke up with him. He has finally scraped together enough for a down payment of hundreds of thousands to buy a house, but he is 108,000 miles away from the one he saw after graduating from college.

So inflation not only makes prices rise, but it also accelerates the redistribution of wealth, making the gap between the rich and the poor wider, but the poor getting poorer and poorer, why?

Because, the money in the hands of the poor is becoming less and less valuable, and naturally they cannot keep up with the development laws of this era.

So why do the rich get richer and richer? It's because the rich have assets in their hands, and the money printed out drives up the price of the assets, so they get richer and richer.

For us ordinary people, try to make money, work hard to save money, and become rich, just like a bucket, we just try to fill it with water, and the bucket will be full, but the actual situation is that due to the existence of inflation, there is a hole under this bucket, and every time you pour water into it, it will lose along this hole, so this bucket will never be filled.

However, the rich man does not do this, he works hard to make money, he converts the money into assets, and then uses this assets to compound interest. In the same case of a hole in a bucket, they don't pour water into the bucket with a hole, but use water to exchange for hens, and then play a cycle of chicken-and-egg and egg-and-chicken games, and in the end they naturally become rich.

Money is not wealth, so what is wealth? Asset.

As long as you have assets, you can become richer and richer, because assets increase in value as money is printed. Therefore, when I got my first salary when I started my business, I went to the gold store to buy a large amount of gold, and now it is proved that my vision is right, a gold has risen to six or seven hundred, and it is not a brag that a gold will rise to millions in the future. Since then I have become a cashless person, because as long as I have money, I will think about turning it into gold, a house, a car, or all kinds of jade. In this way, I realized the continuous accumulation of wealth little by little.

Therefore, stop being poor because you are lazy and because you don't work hard, but because you don't know the basics of economics.