Money is illusory
Earn money—spend money—make more money—spend more money. It is this greed for money and fear of lack of money that have been replaced by feelings for thinking, and some people fall into the trap of life. .
That is, making more money, even if they are rich, will not make them truly happy.
But no one can get happiness without money. Money is everywhere in every corner of food, clothing, housing and transportation.
If we want to be rich for a long time, we should learn financial management knowledge and the ability to manage money.
"Fool's Financial Principles"
The rich buy assets; the poor only spend; the middle class buy liabilities that they think are assets.
If you want to become rich, first distinguish between assets and liabilities, and then continue to purchase assets while reducing the purchase of liabilities.
Here again I point out a theme of this book, not to work for money, but to learn to use money to work for yourself in order to earn more money.
"Wealth is the ability to support a person's survival for how long, or if I stop working today, how long can I live?" Wealth is not equal to net assets, but we can use wealth to measure how far we have achieved our goal of economic independence. .
You should pay attention to your own career, increase your own assets, and avoid spending your entire life, just making someone else's career.
The author cited the example of McDonald’s founder Ray Crocker, a commonplace example. His career is to sell hamburgers, and his career is to increase income-generating real estate. This means that if you want to increase your income, trying to do a few more jobs is just a drop in the bucket.
The author provides several types of assets here, which I think can still be referred to: business, stocks, bonds, mutual funds, income-generating real estate, IOUs, patents, and value-added and liquidity businesses that can operate normally without having to be present. thing.
At the same time, the author also concluded that financial quotient is composed of four elements: financial knowledge, investment strategy (the science of money making money), market conditions (the science of supply and demand), and laws and regulations (the techniques of reasonable tax saving, etc.) .
Everyone has great potential
In addition to the lack of professional knowledge to form a financial quotient, excessive fear and self-doubt are a huge factor that wastes our potential.
Fear of risks has made us miss many opportunities. The best way to meet the unknown is to learn the methods of risk management in advance. At the same time, learn financial management knowledge to create more opportunities for yourself.
Knowledge is power, and we need to know what kind of knowledge is important power. That's why the author said: "Our only and most important asset is our brain." If financial quotients are low, even if you get rich overnight, smart money will slip away from you.
Five difficulties that affect financial independence: fear, cynicism, laziness, bad habits, and conceit.
Ten actions to awaken the talents of financial management:
(1) Set a goal as a motivation to generate spiritual support;
(2) Think independently and have the courage to learn the thinking habits of excellent people;
(3) Choose friends carefully , Focusing on the power of interpersonal relationships;
(4) Master a money-making model, and then continue to learn new models;
(5) Cultivate the power of self-discipline, the inherent perseverance of the character;
(6) Give the brokers generous remuneration, welcome the good of professionals Recommendations;
(7) Determine the return on investment when investing;
(8) It is not recommended to buy luxury goods, because this is a debt, but it can also be used as a small reward for investment success (from the perspective of educating children in financial management);
(9) ) The idol’s indifferent role: See the talents and learn from the goodness of the example;
(10) Give first and take later; only after giving, there may be rewards.
summary
This book talks a lot of truth throughout the book, interspersed with various examples, mainly to create a new mode of thinking for readers: you can choose and have the opportunity to become a rich man.
The author is keen to promote the benefits of improving financial quotient to others, and also in the book talks about suggestions to Singaporean female journalists, Hawaiian artist friends, etc.-talented people should combine their professional and financial quotient to earn more money.
Fortunately, the author happened to have a rich dad and a poor dad, who provided him with different ideas and methods for him to study and judge.
Many people only have one dad, but this book is far from our time. We also have more channels to collect information and explore the world. Rather than want to know why I want to do this, I might want to know how to do it through this book.
After all, if we had doubts about the need to increase financial quotient and increase wealth, we would not pick up this book.
This publication is organized by Feng Lunfeng Niuma, Tangyuan Dawang and other content
Digest of Original Documents
1. Know how to "let money work for you" instead of "work for money". And put forward practical and effective investment strategies and financial management methods to guide people to create and hold wealth.
2. Assets are things that can put money in your pockets, whether you work or not; liabilities are things that take money out of your pockets. If you want to get rich, you just need to keep buying assets; if you just want to be the poor or the bourgeoisie, then keep buying liabilities.
3. In the long run, what matters is not how much money you earn, but how much money you can keep and how long you keep it.
