Can Xiaobai also become rich? Xiao Bai said: My income is very low now, moonlight, credit card overdraft, become rich? How can it be?
I said: How do you know it's impossible without trying? Princely general, Ning has a kind of hu? If you still have dreams, still yearn for a high quality of life, still yearn for becoming rich, still yearn for financial freedom, let's try it together!
What do you want to become, do you have to know what it is? Why? How? If you want to become rich, you must first know what a rich person is? What's different? What does it take to get rich?
Let's see what a rich man is. A large number of studies have found that the rich are the ones who will allocate 80% or more of their money to investment, invest first to make money, then consume, and let the money work for themselves. What's different? What is the biggest difference between rich and poor? The answer is: thinking. In essence, the difference between rich and poor is actually the difference in ways of thinking. What kind of thinking is poor thinking? The thinking of the poor is that once they get the money, they first instinctively think of buying, thinking of eating, drinking, and having fun, thinking of all kinds of luxury enjoyment, consuming first, spending how much they have left in the end, but ignoring investment. What is rich thinking? Invest first to make money, then consume, let the money work for themselves, allocate 80% or more of the money to the investment, so that they continue to earn more money for themselves. Take a look at the image below:
What does it take to get rich? What is the key to rich and poor in life? The key to the poor being poor and the rich being rich is the word "assets." What is an asset? An asset is everything that can be measured in monetary terms. We are full of assets in our lives: houses, cars, tickets, furniture, appliances, stocks, funds, etc. are all assets.
First, learn the way the rich think. Invest in your own brain. Measure decision-making in terms of the value of unit time, keep learning, and spend money on other people's time. Everything is thought first, followed by skill. Try to spend time arming your brain, rather than wasting a lot of time to save money, because time is the most precious. The meaning of learning is to stand on the shoulders of giants and look forward. Only with the thinking of rich people can we do more with less in terms of making money and managing money. People who do not have the thinking of rich people, even if they win a hundred million or inherit 10 billion, it is useless, and the wealth will still leave you. For example, Li Zhaohui, the former richest man in Shanxi, inherited a ten-billion-yuan inheritance and finally became heavily in debt. A person who does not have the thinking of a rich person will be consumed even if he has a lot of money, so it is very important to establish a rich person's thinking.
Second, learn to manage money. What is Banking? Income is not high, every month there are debts, how to manage money? Any arrangement involving money is financial management. Financial management is a very broad concept, such as the development of family daily consumption plans, investment plans, insurance plans, education plan, pension plans, etc. are all part of financial management. Moonlight, people who do not have much savings or are in debt cannot wait until they have money to manage their finances, because moonlight and savings are mostly caused by unreasonable bad expenses. It is often impulsive consumption, causing a lot of waste, falling into a vicious circle, but for the good expenditure of investment, it hesitates, thinks before and after, and is afraid to make changes, choices and decisions. The key is not to spend the limited funds on the cutting edge, which is essentially caused by the wrong financial thinking. Many people feel that financial management has nothing to do with themselves, in fact, it is not, financial management is closely related to everyone, every expenditure you spend, every distribution of income, is in financial management. Wealth management is not an overnight rich, but a skill that requires time to learn carefully. Learning is anti-human, and if the goal is not clear, it will be three minutes of heat, and nothing will be achieved.
Stick to walking on two legs. Saving money solely on wages is the most efficient way, and if you only rely on wage income to save money, it is likely that you will not be able to save enough capital to manage your finances until you retire. The smart thing to do is to divide the income into several parts to spend when you get the first income, force a part to invest, and then pay off the debt and then go to life consumption. At the beginning, through the two paths of wage and non-wage income to increase their income, walking on two legs is definitely faster and better than walking on one leg.
Learn to distinguish between 3 types of assets. Money-generating assets, money-consuming assets, and other assets. Money-generating assets are things that bring you consistent net cash inflows. With money-making assets, you can lie down and count the money, the so-called after-bed income. A money-consuming asset is something that gives you consistent net cash outflows. With money-consuming assets, you're still paying while you're lying down, which is called after-bed expenses. Other assets are things that generate zero net cash. With other assets, you lie down when you lie down. The key to assets is cash flow. If you want to be rich, you must constantly buy money-making assets.
Learn to distinguish between good and bad spending. A good spend is spending that money that can create more money or more benefits for you; a bad spend is a consumption that desires can't hold back. Let's take a look at what good payouts can bring. Zhao Lankun, a Taiwanese native of Shenyang, is the mother of Lien Chan, the current honorary chairman of the Kuomintang. The Lien Chan family has assets of more than NT$20 billion, or about RMB 5 billion. It is a tycoon in Taiwan that has accumulated tens of billions of wealth by investment and wealth management alone. The reason why the Lian family is so rich is because of Lian Zhan's mother, Zhao Lankun. In 1945, Zhao Lankun took Xiao Lianzhan with her husband Lian Zhendong from the mainland to Taiwan. Lian Zhendong was a scholar who was obsessed with studying history and did not manage the finances at all. The life and financial management of the Lian family are all responsible for Zhao Lankun. She sold two pieces of land that were not very valuable left by Grandpa Lian Zhan and bought a house in a relatively good area to collect rent. Later, under the recommendation of a friend, Zhao Lankun invested most of his savings for many years in the stocks of Banks such as Changhua Bank, Taipei Enterprise Bank, South China Bank, etc., and after buying them, they would no longer sell, and after more than 60 years of long-term holding, the stocks of these banks had increased by nearly 10,000 times.
Treat income and expenditure like the rich. Most of the rich people's main income comes from money-making assets, and the wealth-making assets do not have to work for the sake of life, the rich's money-making assets often account for more than 80% of the total assets, while the poor often do not have any money-making assets; the good expenditure of the rich accounts for more than 80% of the total expenditure, and the poor often do not know that the expenditure is also good or bad, and the bad expenditure accounts for more than 80% of the total expenditure. The rich and poor of man depend first and foremost on ideas, not on property itself. Most moonlight people will think that income-expenditure = balance, so it is moonlight or debt; the rich people think that income-compulsory investment = expenditure, and the result will be a large amount of money-making assets. Once you switch to this way of thinking, your balance will immediately increase, and this is the power of thinking.
Invest your money in a safe place. Never kill your goose. Once upon a time there was a poor farmer, the happiest thing every day was to pick up a goose egg from his goose cage to make breakfast, one day he found that his goose would produce golden eggs, he sold the golden eggs, bought a lot of delicious food, after which he could get a golden egg every day, and the days became rich, but the farmer was a greedy person, he felt that the goose only laid one golden egg a day, why can't he lay more? He grew increasingly angry until one day he took a knife and split the goose in half, trying to find more golden eggs from the goose's belly, but he ended up getting nothing. The goose here is your real life asset, the golden egg is your interest, without the principal there will never be a return, so you must make a good profit and raise the goose that lays the golden egg.
Establish compound interest thinking. Compound interest formula: yield = principal× (1 + yield) time. You may say, I have no principal to invest in this moonlight, and what is the point of compound interest? Let's try it, suppose you take 500 yuan a month to invest in money-making assets, with an annual income of 10%, with compound interest accrual, guess how much money you can get after 30 years, 1 million? 5 million? NO, NO, NO, it's 87.24 million, what's the matter? If you are 25 years old now and invest 500 oceans, at the age of 55 you can have a wealth of 87.24 million, think about it is not very beautiful? Still spending all your money on bad expenses?
Achieve financial freedom. What is financial freedom? Financial freedom is all about your non-salary income covering your day-to-day expenses. So how can non-wage income cover daily expenses achieve financial freedom? The key is "money makes money". It is to invest money in the assets of making money, increase their own assets of making money, and increase their income after sleeping. What is after-bed income? That is, after you fall asleep, your money-making assets are still making money for you, and the money-making assets can work 24 hours a day, all year round, to make money for you, so as to obtain non-wage income, thereby achieving financial freedom.
If you feel like it's worth trying, get started within 72 hours, as there's a famous "72-hour rule" in Puppy Money. What's said is that when you decide to do something, you have to finish it in if 72 hours, or you'll most likely never do it again. Please start now, study hard and don't be lazy, establish ideas and frameworks, and then learn financial skills little by little, just like learning to drive, learn to practice well, I believe that soon we will become rich together, achieve wealth freedom, look forward to you!