In today's society, many people are unaware that the so-called "well-off families" are actually in a rather vulnerable situation. Many individuals have amassed wealth in their youth by taking advantage of the dividends of the times. This is no different in essence from winning a lottery jackpot; it is essentially just a matter of luck. However, most people in the well-off or middle-class strata mistake this luck for their own strength and are completely oblivious to the impending crisis. Take Li Ming, a senior executive in a foreign company in Shanghai, as an example. Behind his seemingly decent life, he is actually walking on thin ice. He has to bear the mortgage for two houses every month, the high tuition fees for his child's international school, and the expenses for his parents' chronic illnesses. Once he encounters layoffs or a serious illness in his family, the family's finances will collapse instantly. In reality, there are many such cases. Many well-off families suddenly fall back into poverty in middle age, which is truly lamentable. So, what exactly causes this situation?
Firstly, many people are blindly optimistic and over-borrow for consumption. They believe that the longer they work, the higher their income will definitely be, and the company should give them higher pay. As a result, they borrow money without hesitation and increase their leverage. When buying a house, they choose a large one, thinking they will surely be able to afford the mortgage in the future. They send their children to international schools, cultivating them in the direction of elites. They invest in high-risk areas such as stock trading, opening stores, franchising, and even P2P. In terms of consumption, they pursue famous brand bags, luxury goods, and overseas trips are also essential. They spend money freely, whether it is necessary or not, but completely ignore the possible risks and do not take any safety precautions. When they reach middle age, diseases strike, and the crisis of layoffs also arrives. The hospital bills for treatment continuously erode the balance in their accounts, and their income either decreases or even drops to zero. However, the family expenses have not decreased at all. Their parents are waiting for pension support, and their children are waiting for tuition fees. In this way, falling back into poverty becomes an inevitable outcome.
Secondly, there is excessive and irrational investment in education. Nowadays, the education arms race is becoming more and more intense. Many parents firmly believe that their children must receive top-notch education; otherwise, it means a decline in social status. In order to send their children to prestigious schools, they spare no expense in buying school district houses, sending their children to various expensive extracurricular tutoring classes. The annual tuition fee for an international school can be as high as 300,000 yuan, and studying abroad can cost more than 2 million yuan. However, the reality is harsh. 90% of overseas students earn a monthly salary of less than 10,000 yuan after returning to China. Such a high investment in education has not brought the corresponding return but has instead drained the family's savings and plunged the family's finances into trouble.
Furthermore, unemployment in middle age is also a crucial factor. In this era of rapid technological development and quick industry reshuffling, it is not uncommon to see people in their 35s being "optimized" by big companies and those in the real estate industry in their 40s switching to driving Didi. Once they lose their jobs and have no passive income to support them, middle-aged people are like lambs waiting to be slaughtered, and the family's finances will fall into a crisis instantly.
At the same time, investment mistakes are also an important reason for well-off families to fall back into poverty in middle age. After accumulating a certain amount of wealth, some people are eager to achieve wealth appreciation through investment. However, due to a lack of professional knowledge and rational judgment, they blindly follow the trend and engage in stock trading, invest in P2P, or franchise unreliable projects, ultimately losing all their money. For example, some people invest all their savings in the high-risk stock market, hoping to get rich overnight, but suffer heavy losses during the stock market crash. Others trust others easily and participate in so-called "high-yield" investment projects, only to be scammed and lose all their savings accumulated over the years.
In addition, health issues cannot be ignored. In middle age, physical functions gradually decline, and the risk of diseases increases. Once suffering from a serious illness, the treatment costs are often extremely high. Even with medical insurance, the self-paid part may still be a heavy burden for a family. For instance, a middle-aged business owner who was originally successful in his career unfortunately got cancer. To treat the illness, he not only spent all his savings but also borrowed money everywhere, and eventually, his family fell into a difficult situation.
Moreover, unreasonable family financial planning is also a potential hidden danger. Many families do not plan their income and expenditure rationally, lack the awareness of saving, and rely too much on credit cards and consumer loans, resulting in being burdened with debts. Once their income fluctuates, they cannot repay the debts on time, thus triggering a financial crisis.
Facing these factors that may lead to falling back into poverty in middle age, we are not helpless. Firstly, we should establish a correct consumption concept, consume rationally, and avoid blindly following the trend and excessive borrowing. In major expenditures such as buying a house and children's education, we should formulate a reasonable plan according to the actual situation of the family to avoid putting too much economic pressure on ourselves. Secondly, we should pay attention to learning investment knowledge, improve our investment ability, choose investment projects carefully, and avoid blind investment and speculative behavior. We can diversify our investment funds into different fields to reduce investment risks. Thirdly, we should make a career plan in advance, enhance our core competitiveness, expand our income channels, and increase the sources of passive income. For example, we can start a side business in our spare time or achieve asset appreciation through investment and financial management. At the same time, we should attach importance to health management, have regular physical examinations, and purchase appropriate commercial insurance to establish a health protection line for the family. In addition, we should plan our family finances reasonably, formulate a scientific financial plan, increase savings, and improve the financial resilience of the family.
In the final analysis, being well-off or middle-class is just a stage identity in life and not a lifelong guarantee. We must deeply understand this from the cognitive level, abandon unrealistic fantasies, and down-to-earth make every step of the plan. In the future life journey, no matter what kind of life plan we make, we should always follow the basic principle of opening up multiple cash flow channels and building an anti-risk barrier in advance. Only in this way can we ensure that we have money coming in throughout our lives, always have some savings, effectively avoid the dilemma of falling back into poverty in middle age, and lead a stable and prosperous life. If you are currently confused about your family's financial planning, worried about falling into the crisis of returning to poverty in middle age, want to purchase "financial real estate" for your children, or build a full-life-cycle security for yourself and your family, you are welcome to add WeChat Raven999HK. I will customize an exclusive plan for you to help you safeguard your family's wealth and embrace a bright future.
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