The current economics textbooks talk too little about finance, and the books on finance pay too much attention to technology, lacking the exploration of financial history and objects, which is inevitably depressing and boring. Finance is an intertemporal exchange of value between people. For example, if you go to the bank to deposit money, take the one-year fixed deposit of China Bank for 20 19 as an example, which means that the bank promises to return the principal and pay interest 1.75% one year later. In this way, you sacrifice today's principal to get future income, while the bank sacrifices future money and gets your principal. This is intertemporal value exchange, that is, intertemporal transaction. Similarly, the concepts of bonds, funds, stocks and insurance are not difficult to understand. These nouns are all value exchanges across time, but the application scenarios are varied and dazzling. All finance is based on credit. Because intertemporal financial exchange involves the commitment between people, and this is the most difficult problem to solve. We will find that many questions around us can be answered from the exploration of our ancestors. After all, historical issues are the touchstone for testing reality. Throughout the financial history, it is not difficult for us to understand the reasons for the emergence of financial markets, that is, to solve the credit problem. Confucian culture says that "raising children to prevent old age" is actually a kind of financial logic. Parenting is actually an investment to ensure the future, and it is naturally an intertemporal exchange of value. Because parents raise their children, children will support their parents in the future. Therefore, this is a personalized expression of financial logic. Credit is also needed as a guarantee. After all, there are some unfilial children. So, what is the credit here? What binds people's behavior is morality (such as filial piety) and law. In the same way, you will find that behind culture and even religion is the expression of financial logic, and its essence is actually to solve financial problems, such as the lack of financial markets. It is not difficult to understand the powerful influence of finance on cultural transformation. With the emergence, perfection and prosperity of the financial market, the culture will also change to meet the challenges of various intertemporal credit. Therefore, with the help of finance, you can better understand the historical evolution of customs, culture and society.
Knowing the causes of the financial market, it is not difficult for us to understand the social significance of finance, that is, morality is more important than material, "a gentleman is more important than righteousness", and "a gentleman's words are hard to catch up with", all in order to ensure the intertemporal commitment. So, what is the personal meaning of finance? Let's see how to learn and use financial knowledge well. Only when you practice (learn financial knowledge, transform human capital into financial capital, and then gain income through financial capital) can you understand the mystery of financial practice, after all, practice gives you true knowledge. Therefore, in addition to hard wage accumulation, you should also learn how to earn property income, that is, the discounted value of future income. Therefore, studying finance is conducive to the growth of personal wealth, because your wealth will be the sum of past wealth accumulation and future wealth growth. The amazing wealth of many rich people is not only the accumulation of past wealth, but also the embodiment of future income. All this is due to the financial market. It is precisely because of the existence of the capital market that your future wealth can be consumed and invested now. But the future is unknown and the risk is greater, so there is a wealth bubble and a financial crisis. Many people blindly follow the trend (watching others make money in the financial market) but have no corresponding investment and financial management skills, so it is easy to suffer heavy losses in the crisis of not making money at ordinary times. So, what do you want to study finance? One is the knowledge of investment logic, and the other is different investment arrangements (controlling risks by analyzing and evaluating various investment opportunities). I will elaborate on the following articles respectively. Everyone should understand the role of finance in society, master the mode of financial management, and let themselves have property income. Entrepreneurship is the way to get rich, but it is not the only way. Financial investment can also realize your dream of making money.
Aside from the social and personal significance of finance, finance is just a tool to get rich. Finance is a tool for intertemporal transactions, redistributing wealth and risks between present and future, buyers and sellers. It gives people development and greed. If wealth flows to the stock market, it may be used by great companies to invest in development, such as buying production equipment, introducing talents and sharing profits to get rich. It may also be squandered by companies that are not worthy of the name. Similarly, because of the audacity of speculators, even financial instruments that reduce or avoid risks will amplify risks. "Success is Xiao He, failure is Xiao He". Like other tools, finance can not only succeed, but also delay or even be a bad thing. Therefore, open and transparent information disclosure is the guarantee of financial intertemporal commitment. So it is not difficult to understand why financial development always calls for the perfection of the rule of law.
Then, let's work together, along the track of historical evolution, incite financial thinking and understand the world in the growth of wealth.