The first question is, do you think 1 million is a lot?

Some people think it is a lot. If you say 1 million, they will think you are showing off. They will think that if they don’t have 1 million, how can they have 1 million? It must be false, because they are the worst. But in fact, as long as you have a monthly salary of 8,000, you can earn 1 million in 10 years of work.

But will you have money after working for 10 years?

You still have no money, why?

You may say that there are various consumptions and expenses and so on, doesn’t that illustrate a problem?

One million is not enough!

What people call "1 million" a lot does not mean that your account balance is a lot, but that you have the ability to continue to make money, and that you have the ability to steadily and continuously earn a lot of 1 million. This ability is what is important, not how much money you have on your account.

Some time ago, Alibaba laid off high-paid employees. Some of them earned several million yuan a year. When they had jobs, they had to pay 70,000 to 80,000 yuan in mortgage payments every month. They had no pressure at all, but after being laid off, they were unwilling to do jobs that paid 20,000 yuan. Because they no longer have the ability to pay back such stressful loans. In this case, let alone 1 million yuan, 3 million yuan is not enough.

Speaking of houses, I used to read some real estate related content. I would like to mention here that I declare that the following content is what I read from other places, not my own opinion.

Many people suggest not to buy a house. If you don’t have one, it’s better to rent than to buy one.

There are three reasons not to buy a house.

First, most of the houses nowadays are high-rise.

In the past, the demolished houses in the old city were only three or four stories high, but after they were demolished, the real estate developers could build more than ten or twenty stories. They could rebuild higher, so they could sell more houses and sell them at a higher price per square meter than before.

There is profit in this, so some people will do it. But now if you buy a building with more than 10 or 20 floors, the cost of rebuilding it is too high. Who dares to demolish it? When the house is old, it will become a dangerous building that no one dares to rebuild. You must not buy a high-rise building. You may argue again, saying that I have never bought a high-rise building and I am jealous.

Let me talk about the rental-to-sale ratio. I calculated that even if I don't consider the rate of inflation, it will take at least 50 years to recover my principal. Adding currency depreciation, I estimate that I may not be able to recover my principal even if I rent for 100 years. I don't know if this rental-to-sale ratio is high or low.

The second reason not to buy a house is property tax

The property tax will be 100% enforced. How does the state make money after selling the land? Isn't it to collect taxes from the houses you build on the land? But the property tax will not be enforced immediately. No matter when the property tax is enforced, one thing is certain, that is, there will be fewer and fewer people taking over in the future.

On the one hand, those real estate speculators will sell their houses because of property taxes. On the other hand, as the birth rate decreases, there will be fewer and fewer buyers.

The third point is property rights

I remember that the property rights of houses in Japan are supposed to be permanent, and it seems to be the same in the United States, but in our country, you don’t own the house after you buy it. You only have the right to use it for 70 years, but no one knows what will happen after 70 years.

This is the most terrifying thing! Because in the contract you signed when buying a house, once you signed the contract, it means that you accepted this fact, you accepted the 70% property rights. At that time, you can only accept what they want to do, because after 70 years, the house no longer belongs to you in the legal sense.

I would like to emphasize again that the views expressed above do not represent my personal views!

I am just repeating several statements on the Internet in the first person tone. I am very opposed to the above comments, which are all nonsense.

My personal opinion is that housing is a good thing and a pillar industry of our country. Young people should buy more than one house. If they can afford it, they should buy several. Let's continue with our topic today.

The second thing we want to discuss is the difference between the nouveau riche and the rich.

Yesterday I posted a message saying that I want to buy an iPhone 13 Pro for my mother because she is currently using an Android phone. Android phones become very slow after being used for a long time. This is determined by the underlying architecture of iOS and Android. However, the performance of the new model is not much improved and various taxes have been added.

One of them is the IQ tax. In terms of comprehensive cost performance, the old model is higher. However, my mother is very proud. She refused to have it herself at first, but after repeated arguments, she told me to buy the latest model. If she wants it, I will buy her a new one. At most, I will pay the IQ tax.

Then someone said, didn't you say you were rich? Why are you still hesitating and giving me the whole package regardless of 13, 14, or 15? First of all, I never said I was rich!

When did I say I had money?

Some people may think that when someone says hundreds of thousands or a million, they cannot earn it themselves. They start to feel jealous of the rich. This is why I explained above whether one million is a lot or not!

When did I realize that the several million balance on the books was not enough?

In 2010, I just started working and my salary was only 2,000 to 3,000 yuan. Although the salary was relatively low, I was not very panicked at the time because my family gave me some pocket money every month when I was in school, which was more than my salary. My father also had some savings from his small business. There was at least 3 million yuan in the account. I had no idea about financial management. I felt that this money was enough.

Later, I went to Shanghai to work for a few years and prepared to buy a car. Because I couldn't get a Shanghai license plate, I went back to my hometown to buy a car. What impressed me most was that when I bought the car, the salesperson told me that it was not good to buy a car, so it would be better to use the money for buying a car to pay the down payment for buying a house. He took out loans to buy several houses. Although I didn't say anything at the time, I had already despised it in my heart and said, you know nothing, I can earn tens of thousands a month. Although the house price rose a little when I left, I still wanted to buy a house. I thought to myself, you are a salesperson with this little salary, you know nothing.

A few years later, the subway was opened and the housing prices skyrocketed. I looked at my salary and found that it was not enough to cover the housing prices. I realized that the old hands who had been in the society for decades had foresight. There was a good opportunity at that time. The funds in my father's account could have bought a house in full. I rented a community when I left my hometown. It was a small alley. I used to ignore it, but now I can't afford it. Before I left, the landlord wanted to sell the house. The price was less than 8,000 yuan and the size was less than 100 square meters. It had a living room, a bedroom and a bathroom. Even if you don't live in it, it is a very suitable house for rent. The key is that less than two years after I left. There was a subway across the street. Before the subway was opened, my father asked me to help me buy the house. I didn't accept it because I wanted to go to Shanghai to make a living. Later, the subway was opened there and the housing prices skyrocketed. I regretted this for many years.

It is true that there are many opportunities for financial freedom in life, but we just didn't seize them. If you seize an opportunity, you can at least save 20 years of hard work. But even if you have money, you can't spend it recklessly. Like the guy on Twitter who said that he would buy anything if he had money, he is probably a nouveau riche.

So what is the essential difference between the nouveau riche and the rich?

Because the nouveau riche have been poor for a long time, they may have made a fortune by chance through some means of making quick money. They want to show off themselves and want to compensate for their previous poor self. They will buy things crazily and regardless of the cost. They show off their wealth just to inform their friends around them and prove that they are different from before. But they are still extremely poor in their hearts. Spending money recklessly does not represent how strong you are, but only reflects that your intelligence is somewhat problematic.

To others, this kind of nouveau riche is just a mobile ATM. Some people would definitely not accept this, thinking that as long as they have enough money, they can buy anything they want and it is not considered spending money indiscriminately.

Let me give you an example. There is a commodity on the market with a price tag of 10,000 yuan. You are a nouveau riche and you have money. You say no, 10,000 yuan is too cheap and I want to buy it for 100,000 yuan. You are Wang Duoyu, right? Do you think you are awesome in the eyes of others? No, others will only think you are stupid! The really awesome thing is not that you spend 100,000 yuan to buy it, but that he only spends 10 yuan to buy it, or even free! Even more ruthless, others give you money, this is awesome! So I often feel that some people are not normal in their brains, like to be idealistic, and always want to swell their faces and pretend to be rich.

So it is not unreasonable for these people to be poor. Even if they get rich unexpectedly one day, they will soon become penniless. It is not easy to make money, and it is even harder to keep money. I don't remember where I saw it before, but there was a person who studied the nature of poverty. He went to investigate a village. The people in that village were very strange. Some people were poor all their lives, and they were reluctant to eat and wear. They may have never had a full meal in their lives, and then they saved money for a grand funeral.

Every time I see those people who are only interested in empty talk, I think of this. I don’t know why people without money prefer to spend their money on things that have no practical use. Maybe I was also an empty talker in the past, but after so many years and so many things.

I am very pragmatic now. I don't like big houses. Instead, I like small houses like those in Japan. I want to be able to walk to the place I want in one step. I don't like cars either. I can't understand the mentality of many people buying many cars. I don't care about what I wear. I don't smoke or drink. I won't use these things to numb myself and escape from reality.

I have thought about a question: why do people smoke? If cigarettes are so difficult to smoke, why would anyone smoke?

I thought about it for a long time and I think that most people smoked for the first time just to show off. Maybe when they were children, they wanted to be recognized as adults. Seeing adults smoking, they learned to smoke or just for socializing. When you are hanging out with friends, you feel like you are not fitting in if you don’t smoke when you see your friends smoking. This is a manifestation of empty talk and the root cause of poverty. So if you find that there are friends around you who are poor and like to show off, then you have found the reason why they are poor.

But I can probably guess what the reaction of many people will be after reading this episode. People who fit the above situation refuse to accept or admit it, and will use various methods and reasons to deny it.

And those who truly understand this will understand even without me saying anything.