Since I was a child, I had almost no concept of money. I didn’t buy things randomly or eat snacks randomly. I just ate on time. I remember my mother said: How much money will you give me on Monday? When I do the laundry on Saturday, The money is still in my trouser pocket. Later, I read a series of books and courses about money such as "Puppy Money" and "Rich Dad Poor Dad" and learned the correct concept of money.
1. What is the concept of money?
The concept of money is the fundamental view and attitude towards money. Money is a neutral word. You have to find and understand the rules of its operation, rather than follow it and regard money as a purpose and only a result.
We all need to build our own "pipeline".
The more people you serve, the richer you become. Think about it, what services can you provide? Which problem in society is being solved? It's very small, no problem. I would also like to emphasize one point: There is a saying in the book "The Secret": Don't compete with others, learn to create by yourself. You have to learn to create and learn by yourself, and finally achieve a "win-win". Otherwise, you will fall into the mouse dilemma mentioned in "Rich Dad Poor Dad" and be unable to escape the endless cycle of work and consumption throughout your life.
What is financial freedom? 5 million, 10 million, 100 million?
The real freedom of wealth is when you work differently every day but still have a steady stream of income, and this income is greater than your own expenses, then it can be called freedom of wealth
What is poverty?
Monthly income of 1,000,500,200, but still can’t afford to eat?
Ma Jiahui in "The Round Table" once said: "What is poverty?" It means that your desire is one dollar more than your income!
When your desires are always one dollar more than your income, you will always spend one dollar more than your income.
2. Why should we learn the concept of money?
Mr. Lu Xun said that people "first need to survive, secondly, have food and clothing, and thirdly, develop." Then he explained: "The reason why I survive is not to survive; the so-called food and clothing is not luxury; the so-called development is not indulgence." Mr. Lu Xun explained the meaning of these three levels this way: The so-called survival does not mean barely living, which means living a decent life; the so-called food and clothing does not require luxury, just having enough food and clothing; and the so-called development does not mean living a decent life. Like many rich people, they are indulgent, but they are able to enjoy themselves appropriately in material terms.
Buffett said that money is to let you do what you want to do, not to let you do nothing.
When a person has wealth, whether he can make good use of it determines his pattern, and his pattern determines how far a person can go. Once you have money, you will naturally be able to do what you want. If those things happen to have a positive impact on the world, that makes a lot of sense.
We have gone through the era of poverty, and we all need to learn this lesson about money. Your thoughts determine your attitude towards money.
A correct view of money can allow us to live more calmly, and understanding the use of money can allow us to move forward faster than others.
3. I have organized my views on money into three points, which are:
1. Money is the result. After I put in the work, I get value in exchange.
2. Money depends on earning, not saving. To increase revenue and reduce expenditure, more emphasis is placed on increasing revenue.
3. Only those who know how to spend money can have a better life.
Let’s look at it one by one:
1. We look for a job, the company provides the position, you provide the time to work, how much value can you create in exchange for remuneration in the market.
Be willing to give up, be willing to give up, only by giving up can you gain. It sounds easy to say, but when it comes to actually doing it, few people can do it. Just like: Suffering is a blessing, no one really wants to suffer a loss. I just happened to read a book, "Never Look to Others for Security" by Han Meimei. There is a chapter in it: "Ask for happiness and you will get suffering, and seek for suffering and you will get happiness." When life is very happy, you will be very miserable; you will automatically do some bitter things.
In fact, I also have a lot of thoughts that I want to express, but I lack the courage to express them through speeches, so why not use another way? I use writing to explain my thoughts, and then read and share them word for word. Although it will be very hard at the beginning, slowly, with feedback and sorting out my thoughts, I will be happy!
Really persevere, just like writing. I started writing last year, and I can’t be said to be a diligent writer. Whenever I have an idea, I write an article. Gradually, some people pay attention to it.
Luo Pang said: Success = core algorithm * a large number of repeated actions.
When what I write can really touch people, make others change their behavior, and prompt them to take action, a sense of accomplishment will arise spontaneously.
2. Increase revenue and reduce expenditure. We tend to pay more attention to reducing expenditure, saving money, and do not buy unnecessary things, but ignore increasing revenue.
In the eyes of many people, especially our parents, saving money and saving money are equated, and spending and wasting money are also equated. The initial motivation for saving money is poverty, not virtue. Saving money must initially be equated with poverty.
Open source allows you to improve your profession and strengthen your abilities step by step. When I save money, its cash flow is a dead end, I can use it to study my major, attend writing camps, and invest in myself.
3. We have gone through an era of material scarcity, and now consumption is everywhere. Only by knowing how to spend money can we have a better life.
Money is for our service. When you have money, you can learn about new consultations, watch a wonderful movie, and enrich your life.
Guan Zhong has a classic saying in "Guanzi·Herdsmen": "If the warehouse is solid, you will know etiquette; if you have enough food and clothing, you will know honor and disgrace." This sentence profoundly explains that only by ensuring that you have enough wealth can you pay more attention to etiquette and honor and disgrace. Personality determines money, and money affects morality.
4. 3 ways to put finances into a virtuous cycle
1. Pay yourself first
After we receive our salary, we always pay others first. Pay various credit cards, buy new clothes, and always forget to pay yourself first.
Now teach you to draw your own wealth pool model and understand how your wealth flows.
Imagine a pool, the water in the pool = your assets, the water flowing in = your income, the water flowing out = your expenses, steam = inflation.
Understand the wealth pool, which is divided into three types. The daily cash pool is a cash account that handles your daily expenses; the short- and medium-term goal pool is a product account that corresponds to the goal one-to-one, and can be used according to your preferences. Establish; the long-term golden goose pool is a long-term investment account, and we need to raise our "golden goose".
How do we raise "geese"? Savings
When it comes to saving money, do you feel stressed? They would say, I don’t have enough money to spend, so how can I save? Don’t worry, saving doesn’t mean you should save all your money. First of all, the main premise is that it does not affect your quality of life.
Here are two simple tips: 1. Remember the mantra of “pay yourself first”; 2. the 10/50 rule.
This means that as soon as the monthly salary is paid, 10% of the salary will be saved first. If it is an unexpected income or bonus and salary increase, 50% will be saved. This way, You slowly raise your "goose". It’s what Buffett calls the secret: save, invest, save, invest again.
2. Manage the wealth pool
The wealth pool we mentioned above must be properly distributed, and each money has its own purpose.
For daily cash pool, you can use bank demand deposits and invest in currency funds.
The short- and medium-term goal pool can be planned in advance, including the rent you have to pay every three months; the fund for traveling in six months; the car purchase plan after two years.
For the long-term target pool, you need to set up a separate long-term investment account, and you can make corresponding long-term investments based on your own risk assessment.
After planning so much, we must also keep good accounts. In fact, the necessities required by each of us are very few, and a lot of expenses are spent on clothing and various consumption. After we first enter the society, we must have the awareness to invest in ourselves. As our value continues to increase, your salary will also continue to rise, and we must have the mentality of delayed gratification.
3. Keep a success diary
In the book "Puppy Money", the author asks us to learn to keep a success diary. When you achieve some success, record it all. Keep building up your self-confidence.
When you write a success diary, you will think more deeply about yourself, the world, and the laws of success, and you will understand more and more about yourself and your desires. In this way, Only then will you have the ability to understand others and completely understand yourself and all the secrets in the world. This is an ideal that we cannot fully realize, but we can slowly approach this ideal step by step.
Everything is to make yourself better and realize the life you want as soon as possible.
Finally, I would like to give you a list of good things, so that you can invest in yourself after work.
Genuine books; high-quality cosmetics and skin care products; video website memberships; private fitness classes; appropriate and decent clothing; paid training courses; museum guided tours; high-quality travel; occasionally treat everyone to dinner; Make better friends; more expensive restaurants; excellent paid apps; take a driver’s license test; online paid music; bedding with high-quality fabrics; insurance; healthy food; friends you haven’t seen in a long time; rent a better house; buy your own Gift.