When the profit reaches 10%, some people are eager to move; when the profit reaches 50%, some people dare to take risks; when the profit reaches 100%, they dare to trample all the laws of the world...
The above paragraph is more appropriate as a setting phrase.
I personally think that among all industries, the two industries that can penetrate the human nature the most are the game and finance industries.
The game industry has created a completely illusory world. This world has extreme good and extreme evil. In this world, you can be any character and do anything; you can use no disguise, and you can squander your truth without concealment.
The financial industry has created a completely real world, and economic laws are the fundamental laws of social operation, and the value of everything is measured by price. In this world, 90% of the wealth is in the hands of 10% of people, and low cognition is ruthlessly harvested by high cognition.
Through the research on Internet financial credit business, I will share two thoughts for investors and users, as well as some suggestions for product managers on the financial end, for your reference only.
The vast majority of junior investors are more concerned with the amount of yield than the yield.
The most effective way for wealth management platforms to improve transaction efficiency is to increase the yield.
1. The sign of investors getting started is from focusing on "absolute value of income amount" to focusing on "income ratio"
As we mentioned in the previous article, most financial management users are buying financial products with the mindset of buying commodities, which is very dangerous; because when buying commodities, what is bought is the present, and what is buying financial products is what is expected to be in the future.
This in turn causes investors to focus on "certain" earnings amounts rather than future growth rates; this will have two effects, which may seem small, but can cause investors to form a bad investment habits.
1. It is easy to be contemptuous of the small and greedy for the big, and make decisions that exceed your risk tolerance.
If you look at the absolute value of the amount, two or three hundred is not a lot of money for most people, and the cost of having a meal with friends and shopping for a second time may be larger than this; therefore, the brain will define it. for "little money".
Suppose you have 5,000 yuan for financial management, and you can earn 200 yuan in half a year, the brain will unconsciously pay attention to these points:
"5,000 yuan (a lot of money), 200 yuan (small money), half a year (very long time).
Through the splicing of consciousness and perceptual splicing, the concept is formed: "It takes half a year to invest a sum of money to make a little money." Then we pursue higher investment returns, but higher investment returns mean higher risks; blind country email list pursuit of exceeding Financial products with your own risk tolerance are tantamount to walking a tightrope.
But from the perspective of yield, the annualized rate of return on investment is 8%, which is already much higher than that of bank wealth management and low-risk stock-bond mixed funds on the market. When you have a certain amount of capital, a compound annual rate of return of 8% is quite acceptable.
The stock god Buffett's cumulative 45-year compound annual return is about 21%. Is it still delusional to invest in Xiaobai to surpass the god of stocks?
2. It is easy to give up halfway, "no money to manage money" will become the best excuse for not knowing how to manage money and not learning how to manage money
Financial management and investment ability, like other abilities, can be learned and exercised, and it fully conforms to the principle of “use it or lose it”.
But there is a strange phenomenon: the vast majority of people are lucky enough to make money, save money to live frugally, go to work on time, and work hard. But they don't want to spend time learning financial knowledge. When I see people around me make money, I feel itchy, so I go into the financial market with my savings. As a result, it is conceivable that the "generous" money "donates" to the financial market and flows into other people's pockets. In the end, there are only excuses such as "can't manage money, don't understand".
There are two main reasons for the reluctance to learn financial literacy:
The first is that financial-related knowledge has a certain threshold and is boring; it requires long-term learning, exploration and accumulation, and most people are unwilling to persevere. The reason is that most people just want to make quick money, can’t accept the process of gradual accumulation, and are keen to pursue short-term interests. , which is human nature.
The second point is a cognitive misunderstanding. It is believed that there must be sufficient principal for investment and financial management. However, because it is human nature to "borrow and spend money", it is trapped by "lack of money" and will never start.
Connecting with the "absolute value of the amount" thinking we mentioned above, since the focus is on the "absolute value of the amount" rather than the "revenue ratio", small gains are disliked, and if you want to obtain greater benefits, it will inevitably require a larger cost. But because people who lack financial thinking often don’t pay attention to saving, a vicious circle is formed, making excuses for themselves and never starting.