The speaker reflects on the current perception of 500,000 as a significant sum of money, contrasting it with the reality of savings distribution and the impact of various societal factors.
The Bank Employee's Plea
An old classmate, now working at a bank, contacted the speaker with a request: to deposit savings in their bank. The reason wasn't high interest rates, but rather the strict deposit targets each employee faces. The classmate needed 500,000 to meet his quota. The speaker, burdened by debt from a house purchase, couldn't fulfill the request. This highlights the pressure on bank employees to secure deposits, even from personal connections.
Deposit Goals
The bank employee's annual target for his assigned customers was 2 million in savings. He explained that while achieving this was easier in the past, many long-term customers have been withdrawing their deposits in recent years, making it harder to reach the goal. He emphasized that if he could meet his goals otherwise, he wouldn't have contacted the speaker.
The Reality of Savings in Banks
The classmate revealed that the average deposit in their bank branch (not a major state-owned bank) is around 100,000, suggesting that most people don't have substantial savings. This was a stark contrast to the speaker's assumption that most people have far more savings.
The Disconnect Between Perception and Reality
The speaker always thought they were relatively poor, as many online and offline sources suggest that 500,000 isn't a large sum. The common perception is that it's not enough to buy a house or even a decent car, and that people readily spend tens of thousands on smartphones, implying greater wealth.
The Deposit Insurance Law
The speaker highlights the significance of the 500,000 figure within the context of the deposit insurance law. This law only guarantees compensation up to 500,000 per household if a bank fails. This threshold was chosen based on a central bank investigation that found only a small percentage of accounts nationwide held more than this amount. This underlines the fact that most people have less than 500,000 in savings.
Reasons for the Misperception
The speaker identifies several reasons why people often underestimate the value of 500,000:
- Propaganda and Exaggeration: Financial and insurance companies often exaggerate wealth to attract customers.
- Misleading Online Content: Social media often portrays unrealistic images of wealth and luxury, creating a false impression of what constitutes ordinary living standards.
- Rising Incomes: While incomes have increased significantly over time, the perception of wealth is skewed.
- Depreciation of Money: The rising cost of living, especially housing, makes previously significant amounts of money seem less valuable.
The Impact of Modern Finance
The speaker discusses how easy access to credit and mobile payments contributes to the misperception of wealth. People spend digital funds without fully considering the long-term financial implications, leading to the illusion that a few hundred thousand isn't a significant amount. The speaker argues that if people had to physically handle that amount in cash, their perspective would likely change.
Defining Financial Qualification
The speaker concludes by questioning how to define financial well-being, suggesting that it's not solely about savings but also about lifestyle. Is someone with a large deposit living frugally more "qualified" than someone with a smaller deposit who enjoys a more luxurious lifestyle? He emphasizes that being a slave to money should not be the driving force in our lives.