Cash and houses will both lose value, but these three things will make you more valuable Today, many people consider real estate and deposits as two channels to manage their finances. Figures in China show that houses account for 77% of total household assets, the remaining 23% are financial assets. Although considered safe investment channels, some people still believe that real estate and deposits will lose stability in the next 10 years. One of the reasons that real estate is at risk of losing value is that housing prices are increasingly distant from people's incomes.
According to experts, the average house price in Vietnam is currently 23.7 times the average annual household income. A similar issue is also happening in many major cities around the world, where the adjustment may be that real estate prices will enter a period of deflation in the coming years, gradually returning closer to actual income. On the other hand, after many years of epidemics, many families have lost income or jobs, the ability to buy a house is weakened and cannot keep up with high house prices as now, at the same time, families today are more rational in buying houses no longer following trends as before.
Therefore, in the next 10 years, real estate may increasingly lose value and eventually return to a reasonable price level. Regarding savings investment channels in Vietnam, mobilized interest rates have decreased in recent years. Meanwhile, living costs continue to rise, clearly, deposit interest rates cannot beat the actual inflation rate. So, considering the possibility that both real estate and deposits will lose value in 10 years, how should we respond? On this issue, a chairman shared that if you hold three things, you will not have to panic about financial difficulties and always be stable.
1. Knowledge and education are eternal assets
Investor Warren Buffet once said the smartest investment is investing in yourself, not everyone understands that Warren Buffet still spends 80% of his time reading and learning even though he has become a world-famous billionaire. At the age of 16, he realized that only when equipped with full knowledge could he understand the market, control his finances. So instead of chasing the youthful desire for showmanship, he made efforts to study and enrich his knowledge, under the guidance of Professor Benjamin. That solid foundation allowed Warren Buffet to gradually conquer the market and become a wizard in the investment world.
Warren Buffet's success is strong evidence for the truth that investing in oneself never loses, especially in terms of professional knowledge, because this investment for the future can enhance and develop intelligence, paving the way for you to achieve many successes in your career and life. When you have a long road ahead and are confused, not knowing where the future will lead, the best thing to do is not to rush, stay calm, and invest in yourself, because the knowledge you gain cannot be taken away by others. Of course, being paid what you deserve is not wrong.
However, our career and professional skills can only be accumulated by ourselves, the boss is not responsible for this. If you always work with this mindset, you will only be an average worker throughout the rest of your life. Working in the shadows as a supporting character in someone else's story, do you really want to live like that for the rest of your life? In the era of AI technology, learning can be said to be both easy and very difficult. Why?
The easy part is that you can search for anything you want to learn just by typing on the keyboard and most of us have free resources. The difficult part is that you have to resist temptation and focus your limited attention on things that truly matter. It's not difficult to come across investment experts giving advice to netizens on social media, whether it's a fresh graduate or a middle-aged person struggling with livelihood, the advice is always to invest in your own capabilities. After all, without capabilities, all opportunities will leave you. In this world, money will be spent and assets will lose value, only capabilities will not be taken away and will always maintain their value.
A journalist once recounted his past, after dropping out of school while in the 8th grade, he was bullied and even scolded as useless for not having any skills. To earn respect, he was determined to work hard. He attended cultural classes in the evening, went to the office to do odd jobs and learn more professional skills. Following sales staff to meet customers to learn communication skills, while doing odd jobs at the editorial office, he also learned about writing skills and communication business.
He said before the age of 30, he was like a perpetual motion machine constantly learning and investing in this skill brought him all the profits after 30. He became the editor-in-chief and also took on the role of investment advisor and product development, his career and life skyrocketed to a new level. Warren Buffet once said no one can take away what you have learned, everyone has this investment potential. Learning a new skill, practicing more, reading more books, seeking advice from others humbly, no matter how, they will all reward you with super high returns. Investing in the stock market can be profitable or loss-making, investing in business can be profitable or loss-making, but investing in yourself is a form that always yields profits.
2. Social relationships and communication skills are invaluable resources
The relationships around family, friends, and colleagues are important connections that help us maintain balance in the face of world changes, and the circle of relationships has a great influence on each person's life, including valuable individuals such as close friends and family who are solid support to help you create many meaningful values in life. However, there are also those who hinder you, times of stumbling, and many unforgettable lessons. Therefore, choosing good relationships will limit unwanted risks. Beautiful relationships between individuals are invaluable resources and also require high emotional intelligence communication skills.
People who know how to communicate are often able to grasp the relationships between individuals and often seize opportunities at critical moments. The most effective way to communicate is not to argue but to put yourself in the other person's shoes. When you think about a problem from someone else's perspective, you often get sincerity and make things smoother. When you give others more opportunities to express their opinions, you can quickly close the gap between two people.
Therefore, only when you master the art of speaking, listening, and learning how to communicate can you succeed and turn one into 100. Building and maintaining social and business relationships can help you create new opportunities, support in work and life, perhaps these relationships may not have an immediate effect, but who knows, later on, they will help you a lot. However, you need to distinguish between necessary and unnecessary relationships. Only nurture and build necessary relationships, while passing relationships do not need too much investment.
3. Health and well-being are intangible assets
The ancients used to say "having health is having everything, without health is nothing". To become rich, you must have a healthy body, a body that is not healthy, how can you bear family responsibilities. Ultimately, there are countless cases where a middle-class family falls into poverty overnight due to a serious illness. As the population declines, more and more people are starting to pay attention to health and physical fitness, and investing in health will become a new form of wealth creation.
In this challenging and opportunistic era, the importance of enhancing self-worth will never be outdated, whether it is through learning advanced knowledge, improving communication skills, or paying attention to health and physical fitness. These are all keys to help us become more valuable in life. Warren Buffet once said start saving money and investing early, this is the best habit worth developing for the future. Money comes from exchanging value and each of us creates our own wealth. So, never stop investing in yourself, cherish time, courageously move forward, and constantly increase your self-worth.