Over the past couple of days, as we’ve gradually returned to the rhythms of daily life, all kinds of questions have begun to surface — chief among them, a deep uncertainty about the cost of living and future prospects. This is entirely inevitable. Having come through such a significant upheaval, our recovery will naturally be lined with obstacles and setbacks. So today, this piece from Master Chi is dedicated to our middle-class friends and those still in the lower tiers. First, I want to show you how to stay grounded in circumstances like these. Second, I want to show you how to realign with the broader trend — and come out ahead.
Though this piece is written for middle-class and lower-tier brothers and sisters, Master Chi still wants to draw on examples from the circles he actually moves in. Because no matter the time or place, the group that truly commands resources in this society is always the best barometer.
The Logic of the “Capital-Rich Circle”
One enormous mistake many middle-class friends make is always looking at the surface rather than what lies beneath. They assume that whatever the people crushing them in net worth and status are doing, they should be doing the same. They see an admired tycoon driving a luxury car, wearing a luxury watch, living in a luxury home — and they set these as their own targets. Even if their finances aren’t there yet, they’ll settle for the “lite” version.
Don’t dismiss this. Look around you — look at yourself. Isn’t this exactly how so many lifestyle and spending habits take shape?
Don’t forget: the reason wealthy people can afford — or choose — to spend that way has a logic behind it.
The most common logic is simply: “I genuinely have money, so buying this thing doesn’t even register.”
Sometimes when we’re out for tea, chatting over a meal, someone might catch a glance at something on the way up the stairs and casually buy it while waiting. Why? Because when your monthly income hits seven figures or more, spending a few tens of thousands truly doesn’t register. More relatable: if you’re earning tens of thousands per month, do you even notice a ten or thirty yuan daily expense? Of course not. Same principle.
Then there’s another layer: “I’ve made it to this level — there’s a standard to maintain.”
Take the wave of “tech nouveau riche” that’s emerged in recent years. Many of them aren’t particularly drawn to luxury goods — their reputation and standing within their circle speaks for itself. But those in the more publicly visible capital circles operate differently. The same person can undergo dramatic changes over just three to five years. Master Chi can rattle off dozens of examples on the spot. You don’t need to look far — just glance at any rich-list and watch how frequently names rise and fall, especially from the top ten onwards.
So sometimes the appearance of success is necessary: “Fresh every year, strong every year.”
That’s why outsiders can’t understand why these people love their cars, love their watches, and upgrade annually. Because in this dog-eat-dog circle, showing up new and strong each year signals that your position hasn’t weakened.
Notice something? Why do middle-class and lower-income consumers never receive “brand-exclusive services”? Why do “members-only perks” with genuine benefits exist only in elite consumer circles? The answer is simple: one person in the elite tier spends more on luxury goods in a year than dozens of middle-class buyers who agonize over each purchase — by a factor of dozens.
Now you might be asking: Master Chi, didn’t you say today’s topic was about “standing firm”? Why all this talk about lavish spending habits?
Good question. Because by laying out the logic of lavish spending clearly, you can begin to see just how peculiar the middle-class mentality — as an unwitting follower of that world — actually is.
Here’s the root of it: middle-class men and women, especially after starting a family, face household expenses that climb steeply. After children arrive, the rocket ignites. But think about it honestly, and you’ll realize how absurd it all becomes.
Let me share a real “horror case” from Master Chi’s world. Just last week — Friday or Saturday, I believe — a couple came to see me. Both are in internet companies at senior-to-upper-management level. They wanted a destiny reading (命理) to understand their career trajectory and wealth opportunities.
As I worked through their BaZi (四柱八字, the Four Pillars of Destiny) and destiny chart (命盘), I discovered their home is in one of Shanghai’s most prestigious neighborhoods — a cluster beloved by the “small new elite,” beautiful and exclusive, but carrying a significant price premium. They’re both entirely self-made young professionals. Even with solid incomes and no family inheritance to lean on, this kind of property should be well beyond their reach. (Combined post-tax annual income: just under 1.9 million RMB.)
So I asked. The answer floored me.
They’d bought a near-top-tier unit in that complex for 22 million RMB — maxing out on their mortgage. Without prying into specifics, their annual repayment comes to roughly 1.6 million RMB.
This is an extraordinarily dangerous position. Dangerous enough to potentially reduce a family to ruin.
It means neither partner can afford a single stumble in their career. It means neither of their employers or industries can afford a major disruption. And don’t think “we still have 400K left per year — that’s fine,” or “they’re young and capable — the future is bright.”
Master Chi has witnessed the rise and fall of countless lives. Let me give you three points:
1 — Life will not always be spring. You will have your valleys. Note: I said will.
2 — When you’re in the valley, the most important thing is having no burden, no dead weight dragging you down.
3 — The root of compounding misfortune is that trouble doesn’t drain your finances first — it drains your energy.
That’s why one problem triggers a chain reaction. Already stretched thin handling the first crisis, another erupts, and the person simply collapses.
So ask yourself: if one of this couple faces a career disruption because their industry declines — what then? I’m sure they’re smart enough to manage somehow. But that psychological wire will be pulled to breaking point.
Why put yourself there?
Remember this piece of advice from Master Chi today:
In every life I have observed, every masterstroke — those brilliant moves that change everything — was made when the person was in a state of absolute composure.
I have never once seen someone turn their fortune around through a last-ditch, hysterical gamble.
Because that’s how fortune works. If your state is already depleted and you’re still hoping for a brilliant move, that is simply not possible.
Back to the main thread. Why did they buy the apartment?
Their answer: first, their “friends” all bought there. Second, the complex is new and beautiful. Third, the school district is excellent.
????? — Five question marks aren’t enough. Let Master Chi add five more: ?????
Honestly, not one of these three reasons is logically sufficient to justify this purchase.
In Master Chi’s view, a 10 million RMB apartment in Shanghai would have served this couple very well — at least it would have been appropriate, and crucially, their life would have been composed and comfortable.
And that brings us to the real first topic of today: In the current environment, how do you stand firm?
First, Master Chi hopes you carry no psychological burden or sense of defeat. Instead, find a quiet weekend, sit down with your partner, and have an honest conversation about family wealth management. A few points are especially critical:
1 — Is your debt load manageable and comfortable?
I’m not telling you to avoid debt. Debt, when directed at the right place, is actually a beautiful thing — no undue risk, and it makes you grow. But debt has one critical pressure point: even in an extreme scenario — say, the investment goes completely bad, or your household income takes a severe hit — can you still handle it?
Don’t tell me how smart you are. No one in this world calls themselves foolish, and Master Chi has watched countless intelligent people get brought down by exactly this. (Why the emphasis? Go back and look at what happened last year, and at what’s unfolding this year. Don’t assume the future holds only sunshine — but I’ll say no more on that. You understand.)
If your current situation feels a little shaky, or your financial position is at a delicate inflection point — don’t hesitate. Adjust until you reach composure.
Now let me introduce a concept: the vast difference between new money and old money.
Master Chi has lived abroad for many years, moving in reasonably good circles. After years of observation, I’ve noticed that the worldviews of old money and new money are worlds apart.
New money tends to see itself as invincible — aggressive, contemptuous of patient compounding, always swinging for the enormous score.
But old money quietly builds “steady stream” (细水长流) positions — never placing excessive pressure on the family.
(This is how you can read a real player from a pretender: watch how they spend, and the manner in which they do it.)
The gap between them comes down to one word: composure.
In plain terms, composure means that even in a harsh winter, even when things aren’t going your way, you still have plenty of firewood and provisions — and a steady, if modest, stream of income continuing to flow.
2 — Is your spending pattern a problem?
Look at that young couple — if they made such a decision on property, you can imagine their other expenses: the bags they wanted, the car they wanted, all the “consumption appropriate to their tier” — none of it skipped.
Even in Shanghai, an elite middle-class couple burning through 300K+ annually in pure daily living expenses has a level of excess that is simply too high.
I’m not telling you to tighten every belt. Spend where you need to — life is short. But right now, cut what doesn’t need to be spent. There’s no shame in it.
Take a few of Master Chi’s senior associates — men who used to replace a Bentley every three years. This year, they’ve stopped buying luxury goods entirely and are cheerfully browsing Uniqlo instead. (Assets and holdings intact — they’ve simply cut all the extravagant lifestyle spending.)
And yet because their taste and refinement are bone-deep, even in basics they carry themselves with dignity.
Does that seem like a loss of face? A listed company chairman shopping at Uniqlo — plenty of fools will assume he’s fallen on hard times. His response? Simple: “I’ve been at the top before. Why would I care what anyone thinks?”
That’s all there is to it.
By the same token, every one of us arrived in this world with nothing. Life rises and falls — that’s unavoidable. The real danger is knowing you might be in a rough patch, or sensing winter closing in, and still grinding your teeth to maintain appearances.
That vanity has destroyed far too many young professionals.
3 — Do you have enough chips?
If your personal finances are in relatively good shape, my strong advice is: keep your hands still. Do not convince yourself that right now is the bottom — in equities, real estate, or any other asset class. Today is not the optimal entry point.
Understand what cash is.
Cash is a wealth vehicle that depreciates roughly 6% per year — but its strength lies in its liquidity and ease of holding.
Think of it as the chips in your hand.
The purpose of chips is not to hold them your whole life. Their purpose is to be deployed when you find the right game, the right moment — to bring you even more chips.
One final concept before I close: “Great losses begin with repeated moves.”
You know the line from Old Buffett: “Be fearful when others are greedy, be greedy when others are fearful.” It’s been repeated so many times that people act as if memorizing it guarantees a lifetime of gains.
So why do so many fools still lose money?
Because they lack patience.
In practice, whether it’s equities, forex, bonds, or real estate — people see the slightest ripple and think: “That’s it — time to be greedy!”
Honestly, this quote has hurt people in a very specific way: many have become nothing but greedy, with no room remaining for fear. To misread a teaching that thoroughly is a genuine talent.
So what does the real “fear signal” look like?
Here’s an interesting exercise: go check the historical record. In every single stock market crash — how much of the carnage actually touched the institutional public fund holdings?
Not one cent.
So wait quietly. Watch quietly. Until no one is even discussing a particular sector anymore — and yet you are still spending time researching and investigating it. And then you discover: beneath the still surface, deep currents are moving. The positioning has already begun.
That is the moment for true, great greed.
(The next piece will cover “From Leek to Sickle — Playing to Win.” Enjoy your weekend, everyone — and please take the three key points from today’s article and sit with them over the next couple of days. All the best!)