This book tells us: before managing money, we must first improve our financial intelligence. So what is financial intelligence? Financial intelligence is knowing how to make and spend money.

Sometimes spending money is more important than making money. Why do you say that? Just look at Tyson.

He was once a billionaire, but he lived an extremely luxurious life, never learned financial management knowledge, and left all his wealth to others. As a result, the money was taken away in the end, and all the little money I had left was spent, turning from a rich man to a pauper.

This also verifies a truth: when a person's cognition does not match his wealth, the world has countless ways to destroy his wealth until it matches his cognition.

It’s not your fault that you don’t know how to make money, but it’s your fault that you don’t cherish your money.

What shocked me the most was a short story by Li Ka-shing. It was said that one day it rained heavily. When Li Ka-shing was about to get out of the car, a coin rolled out of his pocket. Li Ka-shing insisted on picking it up, but his secretary was afraid that he would get wet in the rain and stopped him. Finally, a waiter picked it up for him, and Li Ka-shing immediately rewarded the waiter with 100 yuan.

As a billionaire, Li Ka-shing cherishes money so much that he is not willing to waste any money. This reminds me of a saying: How you treat money, money will treat you.

Financial management is not just for the rich, ordinary people should also manage their finances as early as possible.

For ordinary people, living expenses already occupy a large part. If they do not plan in advance, they will be caught off guard when encountering sudden changes. Therefore, it is necessary to learn financial management knowledge now and use the compound interest effect of time to combat the risks of inflation and currency depreciation.

For example, when your child is just born, you start to invest 1,665 yuan in him every month. Assuming that the return rate in one year is 10%, you can easily own it when he is 18 years old. 1 million education fund. But if you start investing when you are 10 years old, you will need to invest more than 6,000 yuan per month to achieve your goal.

Replace consumption thinking with investment thinking.

What is consumption? Consumption is anything that makes you spend money, such as all kinds of purchases that satisfy your desires. Investments are things that allow you to generate income, such as buying a house and collecting rent.

Harvard’s financial management rule is “Save 30% every month first, and the rest can be used for consumption” because the prerequisite for investment and financial management is saving.

Another famous saying about financial management is "You must invest, the comprehensive return rate is above 10%, and you must persist in saving and investing for more than 10 years."

Financial intelligence is important to everyone are all crucial. Only by taking the initiative to learn financial management knowledge and improve financial intelligence can we help us obtain more wealth and fight against the financial risks in life.