Recently I read "The 24 Most Valuable Lessons" and "The Truth About Hypnosis".
I always feel like I have something to say.
In fact, no matter what you say, it cannot be separated from money. I am short of money. If I want to have money, I have to make money.
As people say, if you are unable to do something, you should seek others from yourself.
Others say that money comes from imagination.
It is right to look within.
But how can I get the money I want in my inner world?
In other words, how to come up with money?
Where is the money?
According to teacher Nan Huaijin, there are five places for money. That is natural disasters, diseases, prodigal sons, countries, and thieves. Once we know where we are going, we will know how to use the money.
But where is the money? How to ask?
Throughout history, whenever there is a major change in the world economy, the world's wealth will be transferred accordingly.
In the agricultural age, the world's wealth was in the land, and whoever owned the land owned wealth, such as landlords;
When the industrial age came, the world's wealth shifted and ran away. When it comes to machines and mines, whoever owns factories, mines, and energy will own wealth, such as capitalists;
When the era of big industry arrived in the 1950s, the world's wealth began to transfer from factories again. In the field of circulation, whoever owns the circulation channels will have wealth, such as middlemen, Wal-Mart, etc.
Today, the information age has arrived. Arnold Baker, chief economist of Sandia National Laboratories in the United States, said: "The world economy will undergo the most profound change in history." In this In the process of change, the world's wealth will inevitably shift. Where will it turn? Where is the wealth of the world today? Whether we are entrepreneurs, company managers, or ordinary people looking for entrepreneurial opportunities, when we cannot clearly judge where 80% of the wealth in the world today is concentrated, you will not be able to make it happen. Bill Gates, President of Microsoft Corporation in the United States, said: "In the 21st century, there will be either e-commerce or no business."
We have now entered the information age from the industrial age. Today, the development of global e-commerce has formed an irreversible trend. In 1993, there were only 50 websites in the world. Today, there are more than tens of millions. Online transactions The amount reached US$3.9 billion in 1998, US$5 billion in 1999, US$1.2 trillion in 2002, and US$50 trillion in 2005.
On September 24, 2005, the American "Forbes" magazine announced the 2005 ranking of the top 400 richest people in the United States. In this ranking, we cannot see the bosses of the real estate industry: the richest among the rich, that is, the top 5 in the ranking, nor the giants of the automobile industry. So who are the top 5? The first place is Bill Gates, the boss of Microsoft, with a net worth of US$51 billion; the second place is Warren Buffett, an investment expert known as the "Stock God", with a net worth of US$40 billion; and the third place is Microsoft's guarantor. Allen, with a net worth of US$22.5 billion; fourth is Michael Dell of Dell Computer Company, with a net worth of US$18 billion; fifth is Lawrence Ellison of Oracle, with a net worth of US$17 billion.
It only took China’s richest man Ding Lei four years and Chen Tianqiao three years to accumulate wealth at an astonishing speed. These rich people have the following characteristics:
1. They did not inherit wealth from their families and all started from scratch;
2. They acquired wealth within one generation;
3. The most profitable industries are those related to e-commerce;
4. The most profitable industries are also those related to e-commerce.
When we have seen the rapid development of e-commerce, and when we understand the historical laws of the transformation of world wealth, can we draw such a conclusion? History and reality tell people: Wealth will always be They are all in the general trend of change. Today’s world wealth is contained in the general trend of global e-commerce development.
So who is creating the world's wealth? How do ordinary people participate in the distribution of wealth?
What does it take to be rich? How to make money?
A hot topic on Zhihu is: How much money do you need to earn now to become financially free after the age of 40?
There are many discussants and tens of thousands of followers. In recent years, the concept of financial freedom has been mentioned more and more. Everyone wants to achieve financial freedom, but what exactly is financial freedom?
Some people think that financial freedom means having money and being able to buy as much as you want, start traveling at any time, and change your car or house at will...
But In fact, financial freedom is far from that simple. It is not just about money.
What is true financial freedom?
Baidu Encyclopedia defines "financial freedom" as: a state in which people do not need to pay for living expenses and work hard for money. The available formula is expressed as:
Financial freedom = passive income > expenditure.
What is passive income?
Passive income is Passive Income, which means income obtained from investment or other people's time and money without actively working. It includes but is not limited to: rent, interest, dividends, royalties from works, advertising on personal blogs, endorsement fees, etc.
It can be seen that wages earned through work are not included in passive income. Another more down-to-earth way of saying financial freedom is: you don’t have to clock in at work, and the income you can earn while lying down can cover all your expenses, then you are “free”.
Since expenses are involved, you should understand that financial freedom has nothing to do with how much money you have.
For example, if your monthly expenses are 1,000 yuan, and your assets generate a monthly passive income of 1,001 yuan, you will be financially free; but suppose you earn one million per month, but your monthly expenses exceed Millions, then you still haven’t achieved financial freedom.
Therefore, the focus of true financial freedom is not to have millions, but to feel free, understand yourself and what you own, and know that even if you lose your job tomorrow, you will not be trapped in it. No matter the trouble, you can still live comfortably for a while without having to worry about finding a job immediately.
So, what should we do if we want to achieve financial freedom?
1. Upgrade your thinking model
Robert T. Kiyosaki mentioned 4 reasonable and legal ways to make money around the world in "Rich Dad's Road to Financial Freedom". They are located in 4 quadrants - ESBI.
①E Quadrant - Employee
Employees make money by working for others or for a company. There is a job where the pay-return ratio is 1:0.25-0.5. The work pay is much greater than the income.
No matter where you work, whether you are a CEO or an ordinary employee, as long as you are a part-time worker, someone who exchanges time for money, and works eight hours a day to make money, you are an employee type.
②S Quadrant - Self-employee
Those who are their own bosses invest their own money, add their own time, and then make money. The pay-return ratio is 1:1. If you don’t work, you have nothing. It’s equivalent to working for yourself.
③Quadrant B—Business Owner Entrepreneurial Type
The entrepreneur has a system to work for him, and the return ratio is 1:5:25:125... Entrepreneurs only need to hire the right people Just let people operate the system. Of course, you have to work in the early stage, but slowly you can turn it into an operating system and then you have time and money.
④I Quadrant—Investor Type
Investors use money to make money, and the return ratio is: 1:10:100:1000... They don’t have to work, because the money works for them . It means investing money and funds, such as stocks, funds, etc., to make money with money. In the "I" quadrant, money becomes wealth.
People in the E and S quadrants have income only by working, but people in the B and I quadrants have money without working, which is what we mentioned earlier as having "passive income."
After reading the meanings and characteristics of the above four quadrants, you should have discovered that as long as you are in the left quadrant, it is impossible for you to achieve financial freedom.
As Robert T. Kiyosaki said: "If you want to achieve a balance between time and money, and move towards financial freedom and wealth, unless you work on the right side of the quadrant. You can only work in the B quadrant and the I quadrant Only by working can you earn non-labor income, achieve a balance between time and money, and achieve financial freedom.”
Therefore, if you want to achieve financial freedom, you must first learn B and I thinking. Pattern, know how to take the initiative to change the quadrant you are in.
For ordinary people, if they want to achieve financial freedom, the initial difficulty often lies in the accumulation of funds and the change of concepts. This is actually a step-by-step process. It is recommended that you start with the following two methods.
2. Control your cash flow
Let’s look at two short stories first.
In the two years after Xiao A graduated, he belonged to the moonlight family and even often spent money in advance and overdrafted his credit card. This situation has not improved with the increase in wages. As soon as the wages are paid, I have to pay off my credit card and I am always in debt.
Some time ago, when a family member got sick and needed money, I realized that I couldn’t come up with the money at all.
On the other side:
Little B has been working for many years and has a little savings. As the depreciation of cash becomes more and more popular, he begins to learn and practice investment and financial management, and then uses his The excess money in the world has been invested in the stock market and financial products.
When he encountered an unexpected situation and was in urgent need of a large amount of funds, he discovered that all his cash had been invested and there was no way to withdraw it for emergencies. As a result, I obviously have money, but I can't get it out at all.
The problems of small a and small b are actually caused by individuals' improper management of cash flow. These two situations are also the most common situations that ordinary people encounter in their lives.
Rich dad once said: "People who cannot control cash flow work for people who can control cash flow." For us personally, if cash flow management is not good, no matter how much money we make, it will not matter. will become rich.
If you have the same problem as Little A, the most important thing is to change your consumption habits first, not to pursue a lifestyle that is too high and does not match your current income, and to reduce your debts. minimize.
If you are a small B, you need to make a reasonable arrangement and plan for your funds. Funds must be arranged in advance every year, and profits must be considered on the premise of ensuring liquidity. Remember that liquidity is always the first factor, followed by high returns.
3. Understand the difference between risk and risk-taking
In the past two years, I have found that many people around me buy stocks.
Some do it because of recommendations from others; some do it because of last year’s short bull market; others just follow the crowd...
But among these people, few can see the company. annual report, especially its financial statements. Most people don't even know what the P/E ratio means.
Many people have heard that "investment is risky, so be cautious when entering the market." But they fail to really understand what it means. For most people without financial knowledge, investing in stocks is not a risk, but a risk. They're not even investing, they're gambling.
Today, we all know that purchasing "assets" can generate large amounts of cash flow. But the premise is that you have enough knowledge to be able to identify and purchase the assets.
Most people on the left side of the ESBI quadrant are not particularly good at financial numbers. But if you want to succeed on the right side of the quadrant, then numbers need to be your eyes, allowing you to see things that most people can't.
Having financial vision can reduce your risk; conversely, having financial acuity can increase your risk.
Therefore, it is recommended that you spend 5 hours a week doing the following 4 things:
①Read financial magazines, financial news, etc.;
②Study Finance and investment knowledge;
③ Go play cash flow games, you can find them online, I suggest you play them several times;
④ Go to some financial classes.
Summary
Generally speaking, if you want to achieve financial freedom after the age of 40, you must first upgrade your thinking model. How much money you make is no longer the most important thing. What matters is the extent of “passive income” and knowing when and how to transition from one end of the “Cash Flow Quadrant” to the other.
During this period, you may face failures and difficulties. The key is to believe in yourself. Don’t run away from what you need to learn, face your fears and doubts, take the time to develop the skills you need to master, and new worlds will open up for you.
If you want to be rich, you must first make money.
There are several ways to make money.
One is to make money while standing and make use of hard work; for example, I work for others and make money by selling my physical strength.
The second type is to make money just by sitting and using business labor; for example, a business owner relies on the efforts of himself and his employees to create value.
The third type is to make money while lying down, using intangible capital to make money; such as patents, rents, investments, etc., passive income.
The fourth type is to make money while sleeping and use the system to make money; for example, big chain companies and big capitalists.
The fifth way is to make money by playing and using the system to make money.
The boss is the one who plans the situation. Once the situation is planned, the system and system will be established. For today's big bosses, they just need to plan a situation. If they build a big structure and system, they can make a lot of money.
The No. 1 person thinks about the structure, the system, and the system. He is "doing nothing and doing nothing" and is in the highest position. The focus is on making a good plan; the No. 2 person refers to a team who must do everything and make a difference. , focus on getting things done. In short, the number one person is the way of heaven, the way of Lao and Zhuang; the number two person is the way of humanity, the way of Confucius and Mencius.
We definitely want to be the boss and make money.
Currently, there are several forms of income:
The first is one-time income for one work, such as civil servants, workers, etc. The boss will never do this kind of work; < /p>
The second type is multiple incomes from one labor, such as a boss;
The third type is lifetime income from one labor, such as a certain patent, a certain brand, etc.;
< p> The fourth type is multi-generational income from one labor.Among these four labor situations, as a boss, you should choose the last three situations, which are related to the strategic management implemented by the boss. No amount of hard work brings more than a reward. This is the breakthrough stage to achieve strategic turning points. From working hard in the past to working smarter now, we can achieve multiple outputs for one investment, lifelong output, and multi-generational output. We hope that everyone can be a "parasite" and eventually reach the highest state of "getting something for nothing".
Many people like to be bosses, but they are all small bosses and never make it big. Why can't it become bigger? I think that after a certain level, if a company wants to become bigger and stronger, the boss's awareness must reach a new level. Modern enterprises must break through the lock-in of thinking. At each stage of enterprise development, they must use the concepts and ideas of each stage. For example, a profit of one million yuan requires a state of mind of one million yuan; a profit of ten million yuan requires a mindset of one million yuan. A mental state of 10,000 yuan; a profit of hundreds of millions of dollars requires a mental state of hundreds of millions, otherwise it will be difficult to achieve a breakthrough, and this kind of breakthrough does not take a long time.
People do the work, and people think of the money.
The more people work, the poorer they become, while the more thoughtful people become, the richer they become. This is why the environment for wealth creation in today's era is different. In Western countries, the more you play, the richer you get. As the world's factory, including the Pearl River Delta region, we do a lot of work and earn a little money and think we are great. What we really earn is hard-earned money and hard-earned money. But others are making ideas and standards.
I, a poor person, am teaching rich people how to make money because the wealth mechanism of modern society has changed. Wealth comes from ideas, and educated people have ideas. A new idea is a new currency, and a new idea is a new kind of wealth. In today's society, it is difficult to make money without ideas, new concepts, and new innovations.
After making a lot of money, some business owners say they don’t know how to “play” anymore, because the source of profits has changed. If our spiritual world takes a small step forward, it will be a big step forward for the enterprise. In practice, our breakthroughs in material and profits come from breakthroughs in the brain and thoughts. If the idea cannot achieve a breakthrough, then the money will not be returned.
There is a saying that goes well, emancipating the mind is worth ten thousand taels of gold; liberating the mind is worth ten thousand taels of gold, so money comes from liberating the mind. In the past, Guangdong may have been just trying to do what they wanted, but it is not now. Compared with Zhejiang's development in recent years, I think there is still a slight gap between Guangdong and Zhejiang, for example, in terms of concepts. Thoughts create wealth, but it is not enough if the thoughts are empty. We must materialize them and turn them into a system, a system, and let the system operate.
So should we do something or make a plan?
System is the ultimate way to solve problems.
Profits come from the system, which is a good testimony in Western countries. There are four major principles: letting talented people work for you, capital, system and system. The capable are at the top, the wise at the side, and the idle at the bottom. The system is the fundamental way to solve the problem, so it is necessary to build a competitive system.
At the same time, we should simplify complex problems, quantify simple problems, program quantitative problems, and systematize procedural problems. Regarding the new wooden barrel theory that everyone is familiar with, we can get four insights from it: do it long rather than short, do something small but not too comprehensive, do it deep rather than shallow, and do it fast rather than slow. This requires us to build a competitive system.
At the same time, we also need to copy a competitive system to realize copying, copying and copying. After unlimited copying, the cost will eventually become zero - realizing a process from capital operation to virtual operation.