Chapter 9: The Month-End Spender 9
Knowledge isn’t worth much. In the internet age, knowledge is everywhere and can be learned for free.
Knowledge is worth a lot. Once you learn how to apply it, with steady effort, you can easily save up a sum of money over time.
When Zhao Qianqian discovered that her money market fund balance had exceeded 50,000, she couldn’t stop smiling. She was exhilarated, mentally screaming, “I have 50,000! That’s no small amount! In my entire life, this is the first time I’ve had this much savings!”
Yun Luo: “Host, stay calm. You’re at work right now, and someone might see you.”
Money shouldn’t be flaunted. She had created a persona of someone in debt at work.
Taking several deep breaths, Zhao Qianqian forced herself to calm down, though her eyes still shone with an undeniable excitement.
The year-end bonus had arrived, and everyone was excited, gathered together to discuss how to spend it.
One person said they planned to round up their total savings and use it to buy financial products at the bank.
Another said they were burdened with decades of mortgage payments, and only with the year-end bonus did they have some breathing room. They planned to buy new clothes for their family and stock up on food for a nice holiday. Of course, they wouldn’t spend all of it—three or four thousand would be kept aside for emergencies.
Someone else said they were planning to get married next year. They intended to save the entire year-end bonus without spending a penny.
—
Laughter filled the room, and soon it was time to leave work.
Shen Nianzhi hurriedly walked off, disappearing in a flash.
Colleagues joked privately, “Is she planning to do the same thing as last year, spend all her year-end bonus in one night?”
“She’s giving money to the mall, but she’s more desperate than the mall itself.”
Some even envied Shen Nianzhi’s carefree lifestyle, “Being single is so easy. I wonder what she’ll buy for herself this year.”
Zhao Qianqian, worried about controlling her facial expressions, didn’t join in on the conversation.
Seeing that it was past the time to leave, she quietly slipped away.
—
The journey home was silent.
When Zhao Qianqian arrived, she couldn’t hold back her joy any longer and shouted, “Mom! I got my year-end bonus today! My savings have reached 50,000!”
Wang Yan, who had been preparing dinner in the kitchen, rushed out upon hearing this. “50,000?! Just you? In just one year?”
She had rushed out so quickly that she forgot to put down the spatula.
“Yes.” Zhao Qianqian was overjoyed. “I’ll show you the account balance later!”
Upon hearing this, Wang Yan was so happy she didn’t know what to do.
However, Zhao Qianqian quickly calmed down first. “Mom, go back to cooking, or the vegetables will burn.”
Only then did Wang Yan return to the kitchen, but her smile was so wide that she couldn’t calm her excitement.
Soon, dinner was ready.
Zhao Qianqian was surprised. “Why is the food so good today?”
Since deciding to save money, both mother and daughter had agreed to make efforts together, so their usual meals were very simple.
Wang Yan smiled as she replied, “After resting at home for two months, didn’t I say I’d go back to work?”
“I’ll earn a salary at work, and a pension when I retire—more than 5,000 a month after tax. After deducting expenses, I still have quite a bit left over. Plus, the savings from last year, this month I’ve finally crossed the 50,000 mark.”
“It’s almost the New Year, so I wanted to prepare some special dishes to celebrate. Who knew you’d save 50,000 too!”
Zhao Qianqian was moved. “No wonder they say the harder you work, the luckier you get.”
She’d only persisted for a year, and now good things kept happening.
—
After dinner, Zhao Qianqian wanted to help wash the dishes, but Wang Yan insisted she go back to her room.
Unable to argue, Zhao Qianqian complied.
Sitting at her desk, she opened her accounting book and began checking if she had missed any expenses for the day. After confirming everything was in order, she analyzed where she could save more.
After a year of keeping accounts, she had mostly been able to control her spending. However, sometimes she couldn’t resist certain cravings. Like today at lunch, when she couldn’t stop herself from wanting bubble tea.
She reasoned that with her year-end bonus coming soon, buying herself a cup of bubble tea wasn’t a big deal, so she bought it. But as she reviewed her spending that evening, she regretted it. The bubble tea was expensive and would make her gain weight, so she felt she shouldn’t have bought it.
Just as she was about to write in her account book, Yun Luo suddenly appeared. “Do you know what inflation is?”
“Yes,” Zhao Qianqian answered without hesitation. “It’s when the money supply exceeds demand, causing prices to rise continuously and generally.”
“For example, five years ago, the average salary in the city was 2,600, and rice was 2 yuan per kilogram. A month’s salary could buy 1,300 kilograms of rice.”
“Five years later, the average salary increased to 3,318 (a 5% annual growth), and rice costs 3.22 yuan (a 10% annual inflation rate). Now, a month’s salary can only buy 1,030 kilograms of rice.”
“The salary in hand seems to have increased, but in reality, the purchasing power has decreased.”
“That’s why some people say money doesn’t go as far as it used to.”
Yun Luo then asked, “So, how do you beat inflation?”
Zhao Qianqian answered, “Investing in stocks, funds, futures, real estate, and gold collectibles.”
After saying this, she quickly added, “But I don’t have the guts for that.”
Buying financial products that allow you to withdraw money anytime you need it—this is what most ordinary people think is ideal.
Yun Luo looked at the host. “You know you can’t beat inflation, yet you still don’t dare to take the risk?”
Zhao Qianqian confessed, “I’m afraid of losing my principal if I take a risk. I’d rather let inflation slowly erode it.”
At least the loss would be slower.
Yun Luo was momentarily speechless.
“I’m just an ordinary person. I don’t expect to make a fortune. As long as I have money for medical expenses when I’m sick and can live safely until retirement, that’s enough for me to live a happy and healthy life,” Zhao Qianqian said sincerely.
Yun Luo remarked, “How unambitious.”
Zhao Qianqian didn’t mind and smiled, “Ordinary people are happiest when they’re content. If you’re too ambitious and can’t achieve it, life will be very unhappy.”
Yun Luo pondered for a moment, then suddenly said, “This is fine too.”
Zhao Qianqian was confused. “Huh?”
She didn’t understand what the system meant.
Yun Luo explained, “I saw the news. It seems there have been some movements in the government recently. It is estimated that a new business district will be built in the northern part of the city in the next five years.”
“Your house was bought early, and although it’s old, it’s in the city center. The price is 21,000 per square meter. Currently, new properties in the north are being sold for 7,000 per square meter.”
“If you sell your current house and buy a new one, you could trade one for two. Even after considering taxes and renovation costs, it would still be a good deal.”
Zhao Qianqian fell into deep thought. After a while, she asked, “But what if the prediction is wrong? What if the north doesn’t develop as expected? Wouldn’t that be a loss?”
“That is a possibility,” Yun Luo didn’t deny, “Investing always carries risks.”
But then she added, “However, no matter if the property value goes up or down, as long as you don’t sell it, it won’t affect your life. This is a self-occupied property.”
Zhao Qianqian thought about it and found it very reasonable.
As long as she doesn’t sell it, her house, whether worth one million or ten million, cannot be turned into liquid assets. All she has is a house.
“If you switch houses, you could buy two apartments on the same floor, and then you could take care of your mother more easily,” Yun Luo analyzed.
“The house you’re living in now is old and worn out, and there are no direct buses to the company. Apart from its good location, it has no other advantages.”
“Even if you don’t consider investment and only think about the living aspect, switching houses still makes sense.”
“Give me some time. I want to think this through carefully,” Zhao Qianqian said.
Yun Luo didn’t mind, “The system only offers suggestions. Whether you accept them is up to you.”
—
A few days later, Zhao Qianqian found an opportunity to subtly bring up the topic of moving with her mother.
Wang Yan said, “With our family’s financial situation, how can we afford a new house? There’s no need to consider that.”
She spoke with a hint of envy in her eyes.
Zhao Qianqian suddenly understood, her mother would be willing deep down.
After checking the information, confirming that the new development had a practical layout, convenient public transportation, and complete living facilities, she made up her mind, “Let’s move!”
Buying and selling a house isn’t easy.
First, they had to sell their current home, and they would need to rent a place temporarily.
Then, after purchasing the new home, there would be the renovation and off-gassing period.
Once everything was prepared, moving into the new home would take a lot of effort.
Hearing how troublesome the process was, Wang Yan had second thoughts, “Maybe we shouldn’t move? We’re getting older, and I don’t feel like dealing with all this.”
Zhao Qianqian was resolute, “No matter how troublesome, it’ll only take about half a year. We can endure it and it’ll be over.”
Wang Yan wanted to say something but was interrupted. Zhao Qianqian spoke firmly, “Mom, you’re getting older, and I want you to live in a better home.”
“Once we buy the new house, forget everything else, my commute will be much easier than before.”
“And when you’re older, I’ll be in the same building. You can come visit me anytime you want.”
As people get older, they fear being far from their children. Hearing this, Wang Yan’s heart softened.
After thinking for a moment, she gritted her teeth and agreed, “It’s only for a year, let’s go ahead and move!”
After the house was listed for sale, it was quickly taken over because the asking price was slightly lower than the market value.
By the end of April, the transaction was complete, and Zhao Qianqian and Wang Yan moved out of the old house.
In May of the same year, Zhao Qianqian bought two adjacent apartments in a new development in the northern area. One was registered under her mother Wang Yan’s name, and the other was registered under her own name.
In mid-May, the renovation of the new house began.
By the end of August, the renovations were completed and the house had aired out.
On December 31st, just before New Year’s Day, Zhao Qianqian and Wang Yan moved into their new home.
During the year they rented a place, Zhao Qianqian felt that her savings rate had slowed down significantly. After a whole year of frugality, she had only saved 20,000 yuan.
Fortunately, such days finally came to an end.
On the night they moved into the new house, filled with anticipation for the future, she slept soundly and peacefully.
—
The following weekend, Zhao Qianqian enjoyed a rare lie-in. She didn’t wake up until the sun was high in the sky.
As soon as she opened her eyes, she saw Yun Luo sitting by her pillow, staring into space.
“What’s wrong?” Zhao Qianqian was no longer afraid of this little suited figure. To her, Yun Luo was a friend and a benefactor.
Yun Luo said, “I just received a notice. I have to leave.”
Zhao Qianqian froze for a moment, her sleepiness instantly gone.
“Where are you going?” The question slipped out before she could think.
“To the next host,” Yun Luo replied. “There are too many financial novices, too many people on the brink of bankruptcy, waiting to be saved.”
Zhao Qianqian fell silent.
The system’s appearance was always sudden, and its departure was always hurried, leaving people unprepared.
“When are you leaving?” Zhao Qianqian asked. As soon as the question left her mouth, she realized how strained her voice sounded.
Yun Luo answered, “In 20 minutes.”
“So soon?!” Zhao Qianqian was frustrated, realizing there was no time to even hold a farewell party.
Yun Luo said, “Time is limited. Get up quickly, and I’ll give you your final lesson.”
—
The author has something to say:
Due to the nature of the genre, the time span of the same side story will be very long.
—
Reader’s Finance Knowledge:
I’ve tried keeping track of my expenses before, but I keep repeating the same mistakes and can’t stick to it.
I’ve also bought cosmetics before, thinking they were a good deal when I added them to my cart, but once I bought them, I used them once and then they expired, making them more expensive in the long run.
Author’s Educational Note:
Advantages of Electronic Savings Treasury Bonds
1.Highest credit rating and the best safety: Since Treasury Bonds are issued by the Ministry of Finance on behalf of the central government, they are backed by the country’s credit, and when they mature, the Ministry of Finance repays both principal and interest. Their credit rating is the highest, which is incomparable to investment tools that are backed by commercial credit.
2.Tax-exempt interest, stable returns: The interest rate for Treasury Bonds is fixed, and the income from interest is exempt from personal income tax. The issued interest rate is higher than the after-tax returns of bank savings deposits of the same term.
3.Convenient to purchase, scientifically managed: These bonds can be easily purchased, and their management is systematic and organized.
4.Flexible liquidity, easy to cash out: If you need money, you can redeem the bonds early.
[Electronic Treasury Bonds can be purchased either at bank branches or online through internet banking.]
[Electronic Treasury Bonds pay interest annually, with the principal paid in the final year.]
[Because they are very safe and offer high interest, they are highly sought after. Every time they are issued publicly, all the available amounts are usually sold out within about 20 minutes.]
[The issuance date is not fixed every year. Search for “x year electronic Treasury Bond issuance date” at the end of February to find the exact date.]