Why is it said that those who save money are poor, and the rich do not save money?

Because the poor have fewer resources, the rich save money, but the rich save money in a different way than us.

Exist. However, these two kinds of people save money in different ways, the poor people save money without interest, but the rich will only use this money to do some investment and financial management, and it is the wisest choice to use money to make money.

Because the poor generally keep their money in the bank to earn interest in order to grow steadily. And the rich will take out all their money, and even borrow money from banks to make money in their own way.

Today I would like to write a short essay in English on what is the main cause of poverty in Africa? When I saw this essay question, I was a little confused, and I felt that it was too grandiose.

I really asked myself, and I realized that it wasn't a multiple-choice question, and it wasn't caused by any single cause listed below.

geographical,climatic,social to political reasons.

I went to find a book to read and see if I could get anything out of it. I was drawn to the topic of "why don't the poor save money?" There are two main reasons, one is that the poor have their own economic sociology; The second is that when they have money, they spend it where they shouldn't.

Let's talk about the first one first, the author mentioned a man named Brother Yong, his income has increased compared to before, but the author asks him every time, "Have you saved any money?" He laughed it all off. Later, I found out that Brother Yong's second brother's two children were in school, and his brother had no money, so Brother Yong had to help.

They are mainly agricultural, and the food they produce can only be exchanged for money at the end of the year or the first day of the new year, and they borrow money to live when they have no money on weekdays, so the limited money can circulate infinitely throughout the village. Borrowing money from each other became a daily routine. Entering this circle, they can't save money if they want to, not to mention that they don't want to save yet.

It's no one's fault, who wants something else when they meet their basic survival needs. "Having fun in time" is a common phenomenon in this poor village, and how is it possible for them to save money and not move the money for a long time? Either I use it myself or borrow it from my relatives, and I have to waste oil and keep an eye on money when I go to the bank to save it, so I simply don't save it.

They use this money to buy cigarettes, smoke and drink, and persuade them to drink less, and it is useless to smoke a little, just like if you want to take a little money from the Germans to buy beer for charity, and do not buy it. Consumption outside of subsistence cannot be explained by economics alone, nor can it be persuaded by reason. If it is possible to persuade the Germans to sacrifice a bottle of beer, who can be relied upon to keep the poor who want to spare a little money from smoking and drinking?

First, the economy is recovering. As the domestic economy gradually recovers and people's incomes and employment conditions improve, some people may choose to use their savings for investment or consumption rather than keep them in the bank. At this time, the reduction of residents' deposits can also be seen as a noisy positive sign of economic recovery.

Secondly, the impact of the real estate market. The real estate market is one of the pillars of our economy, and some homebuyers may need to use their savings to make a down payment and a loan. In recent years, the state has regulated the real estate market, including purchase restrictions and loan restrictions, which may cause some home buyers to need more savings to pay for down payments and loans, resulting in fewer deposits.

Third, the impact of financial markets. With the continuous development of China's financial market, people have more choices for financial management and investment. Some may transfer their deposits to other investment channels such as **, **, etc., to get higher returns.

Fourth, the impact of bank interest rates. The bank's deposit interest rate is an important factor affecting people's saving behavior. If the bank's deposit interest rate is too low, some people may choose to transfer their deposits to other financial products instead of continuing to store them in the bank.

Therefore, the reduction of bank interest rates may also be one of the reasons for the decline in household deposits.

In summary, the reason for the decrease in household deposits may be due to a number of factors, including factors such as economic recovery, real estate market, financial markets and bank interest rates. We need to manage our assets scientifically and rationally while looking at these factors rationally to ensure that our financial situation is good.

The rich do have more investment choices than the poor, take bank wealth management as an example, some high-yield wealth management products have an investment threshold, with a minimum deposit amount of 100,000, 200,000, 500,000 or even 1 million. Not to mention that many people don't know that private banking is a wealth management service tailored for high-net-worth customers of banks. Wealthy people have a wide range of information channels and network resources, and they also have more investment channels.

Really rich people generally keep their money**?

Private Banking. Rather than saving money in a bank, rich people are more inclined to borrow money from a bank, and then use the loan for investment and use the money to make money, so rich people rarely save a large amount of fixed or current money in the bank. Even if there is a part of money that needs to be put in the bank, they will choose the bank's private banking service.

Private banks have the advantages of light capital, low consumption, high investment, high returns, low volatility and high valuation, and the rate of return is much higher than that of bank fixed deposits.

Fiduciary**. Wealthy people will invest in "trusts", and low-risk and relatively high-yield trusts** are more "cost-effective" than most financial management. It can be said that the higher the return than it is not as low as it, and the lower risk than it is not as high as the return.

But it is also difficult for ordinary people to get involved in trusts. Because the minimum investment amount of the trust ** is generally several million or even tens of millions. For ordinary wage earners, this threshold is simply not reached.

Property. Real estate has a good anti-inflation attribute, part of the assets in the hands of the rich is real estate, in the past ten years, the first-tier city ** area of the house price appreciation more than 10 times, real estate investment to make the rich people's assets grow rapidly. However, the first period of real estate has passed, and now the rich people in China have changed the direction of investment and appropriately reduced real estate investment.

Collectibles. The collection is very rich, jewelry, jade, calligraphy, painting, antiques, etc. Over time, the market price of some collectibles will increase higher and higher. Rare collectibles not only satisfy the hobbies of the wealthy, but also bring wealth appreciation.

Venture capital. Venture capital is a form of private equity investment, emerging technology and innovation projects can often be favored by the rich, many old models and old industries will always be eliminated by emerging industries, rich people can capture market information, enter the market in advance to open the gap with others.

In addition to the above ways, rich people will also choose ******* portfolio, the inside information in the market is the most valuable to cover the money, rich people in the market will always earn more than the first in the dealer's operation. It can be seen that the asset allocation of rich people is relatively dispersed, and they will put their eggs in multiple baskets. However, the richer the wealth has accumulated to a certain stage, what they pursue is often not high returns, but the steady growth of assets.

In short, the rich people's financial management concepts are more mature, and the allocation of assets is more scientific. Ordinary people may not have much money to invest at this stage, but they can learn the financial thinking of rich people and benefit from it.