The path to counterattack for ordinary salaried class—why you should study 'money makes money' more?

Author: Chen Hanping
Location: Guangzhou, Guangdong
Date: December 11, 2025
Core View: Wages can only solve basic needs, assets determine social class

Introduction: Breaking the "Vicious Cycle"

In Guangzhou, I often see friends around me earning decent wages but living paycheck to paycheck. Why?
Because they are trapped in a "time-for-money" vicious cycle: trading time for money -> spending or buying property with debt -> working harder to repay debts -> no time for self-improvement -> continuing to trade time for money.

For ordinary wage earners, "time-for-money" has a ceiling—there are only 24 hours in a day, and you can't work all 24. But "money-making-money" has no ceiling.

Chen Hanping's View:
In this era, "earning money" is instinct, but "money-making-money" is skill. For ordinary wage earners to climb the social ladder, the only way out is to shift from the "labor market" to the "capital market."

Part 1: Why Should Wage Earners "Especially" Study Money-Making-Money?

1. The "Fragility" of Wages

• One-way risk: Wages are linear. Once you face unemployment, illness, or industry decline (like the transformation many traditional industries faced in 2025), income drops to zero immediately.
• Purchasing power dilution: In 2025, while inflation seems mild, the prices of core assets (education, healthcare, services) are still rising. Relying solely on wages means your purchasing power is shrinking year by year.

1. The "Compounding" Nature of Assets

• Passive income: Only the returns from "money-making-money" (dividends, interest, rent) come in without your physical presence.
• Hedge against inflation: Only when asset appreciation outpaces inflation is your wealth truly growing.

1. The 2025 Opportunity: The "Great Shift" in Asset Prices

• The collapse of real estate faith: As we analyzed earlier, properties in Guangzhou and nationwide are no longer foolproof assets. The old logic of "money-making-money" through property no longer works.
• The rise of financial assets: In 2025, as deposit rates fall further (some fixed deposits drop below 1.5%), capital will inevitably flow into stocks and wealth management. This is the best window for ordinary wage earners to grow wealth through secondary markets (stocks/funds).

Part 2: Data Comparison—"Time-for-Money" vs. "Money-Making-Money"
 

• Dimension Wages (Time-for-Money) Investment (Money-Making-Money)
•  Chen Hanping's Take
  Time input Very high (no work = no income) Very low (almost automated after setup) Wages lock your time; investment frees it.
  Growth ceiling Limited (by energy, stamina) Unlimited (by knowledge, compounding) Your boss may give you a 10% raise, but doubling investments is easy.
  Risk factor Very high (layoffs, pay cuts) Controllable (diversified via asset allocation) In 2025, unemployment risk is higher than stock losses.
  Tax cost High (progressive income tax) Low (dividends, capital gains tax benefits) After-tax income is your real income.

️ Part 3: How Can Wage Earners "Implement" Money-Making-Money?

As "wage earners," we must admit we have little capital, fragmented time, and weak risk tolerance. So, our strategy must be "steady + compounding."

1. Step 1: Reshape Your "Money Mindset"—Save First, Spend Later

• Forced savings: When you get paid, set aside 10%-20% for forced savings. This money isn't for living—it's the seed capital for "laying eggs."
• Reject debt spending: Credit cards and Huabei" are for emergencies, not overspending. Debt is the biggest enemy of "money-making-money."

1. Step 2: Build a "Low-Risk Money-Making-Money" System (For Beginners)
   Don’t jump into stocks right away—start with low-risk tools:

• Easy money: Treasury bond reverse repos
  • Principle: Lend money to the government—guaranteed principal and interest.
  • Operation: Open a stock account, buy during holidays or month/quarter-ends. Annualized returns often hit 2%-3%, multiples higher than demand deposits.
  •  
• Steady foundation: Stick to global top-tier index funds (Nasdaq 100 & S&P 500)
  Core logic: Become the "invisible boss" of world-class companies.
  Ordinary people buying property are working for banks and dealing with tenants and toilets; ordinary people buying U.S. index funds are shareholders of global giants like Apple, Microsoft, Nvidia, and Amazon.
The Nasdaq 100 represents the world’s strongest tech offensive, and the S&P 500 is the backbone of the U.S. economy. Investing in them is investing in the future of human tech civilization.
  ️ Strategy: Build an "autopilot" money printer

1. Buy on payday: Set up auto-deductions when your salary arrives. This fights greed and fear, forcing you to "save first, spend later."
2. Ignore volatility: Whether U.S. stocks crash or soar, keep buying.
3. 
   ● If they fall: Great—cheap chips are delivered to your door. Take them all.
   ● If they rise: Congrats—your wealth grows. Hold and enjoy compounding.
4. Long-term holding: Stretch the timeline to 5-10 years. Don’t think about short-term gains. Just own it like a gold mine and wait for it to produce (dividends + appreciation).

Step 3: Advanced "High-Risk Money-Making-Money" (When You Have Capital)

• Stock picking: Study high-dividend stocks (e.g., banks, utilities) to become a "dividend warrior," living off payouts.
• Global allocation: Use QDII funds or Stock Connect to invest in U.S. tech giants (Apple, Microsoft), enjoying the growth dividends of the world’s best companies.

Final Summary

Chen Hanping’s Advice:

For ordinary wage earners in Guangzhou, your salary isn’t for spending—it’s for "feeding" assets.

1. Don’t expect to get rich from wages: Wages only keep you alive.
2. Treat wages as "bullets": Save a little each month and invest in cash-flow-generating assets.
3. Patience is gold: "Money-making-money" is slow. The first 3 years may show no difference, but after 5-10 years, compounding will surprise you.

Final Golden Quote:
"Every investment you make today is paying for your future 'not working.'"