I have a strong risk awareness and have always had the habit of saving. When I graduated from college, I saved 40,000 yuan. Later, my income gradually increased from a monthly salary of 1,000 yuan in my first year of employment to an annual income ranging from 300,000 to 800,000 yuan. As my salary increased, my savings also grew. Among my 4 million yuan savings, more than 2 million were earned from profitable projects during the three years of the pandemic when high consumption was not possible, so I saved them.
My overall approach to financial management is relatively conservative. I have around 1 million yuan invested in fixed-term deposits ranging from three to five years. The second part is an annuity insurance policy from Taikang, which includes a flexible universal account that can be saved or withdrawn. I basically leave it untouched for about five years, and if I really need to withdraw, there will be some handling fees. The third part is used as working capital for my own projects. I invest in products like weekly or monthly income that offer the flexibility to deposit and withdraw funds. The interest rates on these products are lower now, around 2.6%, compared to the previous 3% to 3.5%. Additionally, I make small investments in some friends’ physical businesses, and the remaining amount is used to buy gold every year. I’m not seeking substantial appreciation, but rather to accumulate it for the long term.
These different investment methods were gradually added as my savings increased. The overall yield is around 4% to 5%, primarily for planning my retirement after the age of 50. If delaying retirement has an impact on me, it means I will have less time to enjoy life, so I prefer to retire early. If I calculate retirement at the age of 55, I still have to work for another 15 years. If I continue saving at a rate of 200,000 yuan per year, my savings should be between 7 to 9 million yuan by the age of 55. Even if I no longer save compulsorily, I would still have around 6 million yuan.
Stability is what I value the most, so the fluctuation in interest rates doesn’t have a significant impact on my mindset. Previously, friends also suggested that I try stocks and funds. At that time, my savings were not as substantial. Let’s say I had 1 million yuan, and even if there was a 6% difference in interest rates, the annual difference would only be 60,000 yuan. To earn that extra 60,000 yuan, I would have to spend the whole year closely monitoring stocks and funds. However, that extra 60,000 yuan wouldn’t significantly change my lifestyle. For me, it doesn’t hold much significance. It’s not difficult for me to achieve my target savings by the time I reach my retirement age, so there’s no need to take any risks.
The most challenging part of saving is going from zero to having a substantial amount. Once you have a relatively large sum of money, the habit of saving becomes ingrained. For example, my salary from work and small additional incomes cover my living expenses. However, if I receive a large sum of money, I make sure to save 80% of it. When it comes to expenses, if something is not necessary, I wait until the next sum of money arrives before considering whether to buy it or not.