Current location - Health Preservation Learning Network - Health preserving recipes - What do you mean by maintaining and increasing value?
What do you mean by maintaining and increasing value?
Money is a voucher for accepting goods and services, representing certain goods and services. Because of inflation, the goods and services that the same amount of money can exchange will become less and less with the passage of time. Preserving value means investing in monetary funds to gain income. When the rate of return is just equal to the inflation rate, the "value preservation" is realized. For example, if we invest 65,438+000 yuan and make profits in 5 yuan, and the inflation rate is just equal to 5%, then the goods and services we can buy after investing 65,438+005 yuan are the same as those we can buy before investing 65,438+000 yuan, so we have no loss. If the rate of return is greater than the inflation rate, the principal and interest after financial investment and the goods and services that can be bought are greater than those that can be bought by capital before investment, it is called appreciation. Value-added means that instead of being damaged, it has benefited, and the wealth and enjoyment gained have increased.