However, in order to change the source of income, it is usually possible to put up with "no salary or low salary" for a period of time, so more than 80% people die directly at the first level, because they can't pass the first level of their own psychological level, can't stand the strange eyes of others, and can't escape the day when they have a stable salary every month, so most people die directly at the first level, and the remaining 20% is about 65,438+.
Before discussing how to "change the source of income", define two terms:
1. One-time income: You have to work hard to earn money. 2. Continuous income: income that can be continuously increased even if you don't need to work.
Therefore, the key to financial freedom lies in "changing the source of income", that is, changing the source of income from "one-time income" to "continuous income". As long as this is not achieved, there will be no financial freedom for one day.
Most people's sources of income are usually as shown in the figure below. 99% of their income comes from one-off income, 1% comes from continuous income, and 1% comes from interest in the bank, which may be gone after deducting inflation ... ..
Therefore, if you want to be financially free, you must turn the above picture into the following picture, with a one-time income ratio of 0 and a continuous income of 100%. This ratio is an ideal value. In fact, even if you can't reach this ratio, you can still be financially free. As long as you can do one thing, that is, sustainable income. Cost, as long as you do this, you will be financially free.
Therefore, to understand what financial freedom is, we must first understand the definition of financial freedom. I define it as: "continuous income >; Cost. " In other words, even if a person earns 30,000 yuan a month and spends 20,000 yuan, it is considered as financial freedom, because his net assets will increase by 1 10,000 every month. Whether he has a job or not, his assets are in a state of increasing and upward, which is "financial freedom". Unless one day he overspends and spends more than 30 thousand a month, which leads to the situation that he can't make ends meet, his net worth will continue to increase even if he doesn't work.
Speaking of this, many people will probably have several questions: 1, is the lottery financially free? 2. Isn't it financial freedom to work in a company and climb to the top? 3. Why can I be financially free when starting a business?
Question 1: Does lottery count as financial freedom? Many people will ask, if I win the lottery one day, I will be financially free. In fact, this concept is completely wrong. People who win the lottery usually resign immediately, thinking that they are financially free. In fact, the income of lottery winners is roughly as follows. After winning the lottery, almost all lottery winners quit their jobs and began to enjoy retirement, eating their old money ahead of time, but the old money was very large.
Question 2: If you work in a company and climb to the top, can't you be financially free? It usually takes only 5~ 10 years to climb to the top of a company. Suppose someone climbs to the top of a company after ten years out of society, and the salary starts at 200 thousand a month (just hypothetical) Suppose he spends 50,000 yuan a month and can save150,000 yuan a month and1800,000 yuan a year. Suppose he retires in 30 years. After retiring, he already has 54 million yuan, but this is just to make his capital bigger. He still started to eat capital, and there was no one-time income.
In other words, it's the same as a lottery. As long as we don't change the source of income and increase our continuous income, we will be eating our old money by the time we retire.
Question 3: Why can entrepreneurship achieve financial freedom? Usually, after a successful venture, companies will go to IPO. If the company wants to go to IPO, the salary of the founder should already be very high, because at this time, the company should have made steady profits. To discuss why entrepreneurship can be financially free, you can just mention a book, "Where will you stand after 30 years old?" Di Xiang, the author of 2, mentioned the concept of printing press in his book, which just illustrates this matter.
For a successful entrepreneur, an enterprise is like a printing machine. When he was still working, he still had a high one-time income. Even after retirement, he still holds stocks. Assuming that the enterprise continues to make money, it can continue to receive dividends, bonuses and other sustained income. Even without this, the shares held by successful entrepreneurs can usually be realized as high assets. For successful entrepreneurs, they usually have a high level of ability and knowledge, and they can also invest their assets in other businesses to create for themselves.
Back to the theme of this article, there is only one thing to do to realize financial freedom, and that is "changing the source of income".
It means that the source of income has changed from one-time income to sustainable income, and there are usually only two ways to create sustainable income.
1. Entrepreneurship 2. Know at least one investment tool that can make a sustainable profit.
The above two methods are actually consistent with the concept of BI quadrant mentioned in Rich Dad and Poor Dad. Robert Kiyosaki believes that to be financially free, you must be a business owner (B) or an investor (I). The way to become a business owner is to start a business, and the way to become an investor is to know at least one investment tool that can make a sustainable profit.
The dilemma of going to work For office workers, the first way to get financial freedom: starting a business is no longer necessary. Therefore, for office workers, the only way to be financially free is to learn a sustainable investment tool. But most office workers often have to work overtime, and they are very tired when they get home. They have no extra energy to study investment and financial management, even if they teach themselves, they can't get in. During the holidays, I want to relax and go out with my friends. Few people will sign up for investment and financial management courses, so time passes slowly and I am about to retire. This is the dilemma faced by office workers towards financial freedom.
To sum up, to achieve financial freedom, we only need to do one thing, that is, "change the source of income" and do "sustainable income"; Cost. " There are two ways to change the source of income: one is to start a business, and the other is to understand a sustainable investment tool. As long as there is no continuous income for one day >; Consumption, you can't be financially free for a day.