In Akkad's spacious living room, Akat tells his story, Akkad was a scribe when he was young, he worked for a rich man, the rich man told him that he accumulated several tricks of wealth, the first trick is to store 10% of his income no matter how difficult it is, this method is different from our usual savings, we usually go out and spend first, if there is any money left, save them, and the rich man asked Aka to save 10% of his income at the beginning. The remaining 90% is then used to pay daily expenses, so that we can ensure that no matter how much the monthly income will have a money deposit card, shouldn't we pay the money to ourselves first? The second trick that the rich man told Akkad was to be cautious about investing in industries he didn't understand at all, and not to hand over the money to a person who didn't know how to do it, for example, there are many discounted and high-return investments in the market today, but we don't know where these people will spend their money, how to ensure the return on investment? I don't know what the qualifications are for these? In the face of such an investment, the risk of us putting money into it is very large, the third trick that Akkad learned is to use the profit made with money, as the principal to invest in, here involves a concept of compound interest, Buffett sees compound interest as the eighth wonder of the world, if we invest 1200 yuan in the first year with 8% interest every year, and then invest the interest of the first year as the principal in the second year, then, after 30 years, this money will be close to 140,000, this is the power of compound interest, really with the help of these three, Akkad eventually became the richest man in Babylon.
Let's briefly summarize three tricks, the first 10% of the income is saved, the rest of the money is used, the second is prudent investment, and the third is to use the power of compound interest!