Read the first book to understand investment and financial management

Chapter 3 Investment Changes Destiny, Financial Management Accumulates Wealth (2)
Joe?Spiller has a book called "Growing Money by Hand". In the book, there is a person who only has 1 cent left. When this person is about to use up the 1 cent at a time, he suddenly changes his mind.He exchanged the money for copper coins, and he told himself that every time he spent the money, he would return it to him in ten or more times the amount.This method works very well.In the end, he acquired great wealth.

Money is a kind of energy, and only in the right hands and in the right place can greater value be created.The fantasy is safe and secure, and the wealth is no more than three generations.

Financial experts said: "Most of the time, we are not short of money but lack of ideas. Wealth is a habit and a way of thinking. In a society dominated by capital operations, one must develop good financial habits and make a perfect financial plan. Learn to make money move, and use every penny to make the most of it through careful operation.”

The purpose of many people's financial management is not to make a fortune, so they often choose to deposit their money in the bank and put it idle, thinking that there is not much risk in doing so, and the interest collected every year will also bring certain returns.However, when I excitedly checked the deposit limit at the end of the year, I found that the deposit was not too much, but less.

This is because the rate of inflation tends to offset or even make bank deposit rates negative.For example, the one-year interest rate on bank deposits is 1%, and after deducting the 2.25% interest tax, the actual deposit interest rate is only 20%.If the CPI is calculated at 1.80%, the real interest rate of ordinary people's one-year deposits is negative.This means that if 3 yuan is deposited in the bank, there will be only 1 yuan after one year, and 1 yuan will be "evaporated" in vain!

Idle wealth is equal to zero, and a certain "depreciation fee" must be paid.The best way is to get the money moving.People with high financial intelligence often don't deposit their money in the bank. They invest their money in different places in order to obtain the most effective returns.

The Jews have a saying about wealth: "Only when you are willing to spend money can you make a lot of money, and you must never care about the money you spend." Profit, continuously create wealth.We must learn the investment wisdom of rich people, let the money in our hands move, make money with money, and "grow" more wealth for ourselves.

You manage your money all your life, and only your money can manage your life

Whether you work for someone or start your own business, whether you are a white-collar worker in a company or manage an enterprise, no matter what occupation you are engaged in, from small details of life to major careers, you must always pay attention to your financial situation and pay attention to it. Manage your money and develop good financial habits.

People need to clearly understand their financial goals, or the meaning and ideal of your life, or what kind of financial goals you want to achieve.Only when a person knows what he needs and pursues, can he determine what he will do. Therefore, if he wants to live a prosperous life, he must know how to manage money and learn how to manage money.Financial management is not a matter of a certain period of time. Financial management should run through a person's life. You must know that money can manage your entire life only if you manage financial management throughout your life.

It can be seen from the above that financial management is really a lifelong matter, and each stage has its own content. Only by carrying out financial management to the end can one become a wealth master.

The God of Wealth and the boy who spread wealth are having a conversation.

"If 10 poor people all win a lottery of 10 yuan, what will happen after two years?" the God of Wealth suddenly asked.

"I don't know, they should be living happily, right?"

"No. In fact, there will be 8 people who will have nothing left, because they spend all the money on luxury goods, food, drink and entertainment; 1 person will simply invest and earn less than 1 yuan a year; And only one person will invest seriously and actively, and get an annual income of more than 1 yuan."

"It's unbelievable. I've been hoping for an extra $1 so I can buy the best mountain bike and I'll be the happiest person in the world."

"Yes, many people always hope that they can continue to raise their wages and have more income, thinking that they can live a happy life with this. In fact, many times, although they earn more, they spend more money at the same time. To buy a bigger house, a better car, and all kinds of brand-name things, the life is even tighter than before. If things go on like this, a vicious circle will be formed."

"That's true."

"So, if you don't develop good spending habits and manage your money properly, no matter how much money you have, you won't be able to solve major problems. Are you a little tired after talking so much? Let's take a break now." After speaking, the God of Wealth Go inside the statue and take out a copper coin from it, which looks bigger and brighter than ordinary copper coins.

The God of Wealth carefully put it into the hand of the Sancai boy, and said: "Hold it well, close your eyes, feel it with your heart, and don't talk." The Sancai boy did as he did.Suddenly, he saw his "Moonlight Clan" cousin.Standing in his home, he is surrounded by piles of books that he bought on a whim but never read. There are 4 cameras on the table next to him, 3 of which have only been used once or twice. That's more.No wonder I always yelled that I had no money, so I used it to buy these things!Then, the scene changed strangely, but it was a middle-aged man who was complaining.He complained: "I really shouldn't have bought such a big house in the first place, and it took me 20 years to repay the loan." A woman next to him said, "Our Xiaoqiang's college tuition has not yet been paid." , Why is this middle-aged man so familiar to me? After a closer look, it turned out to be my cousin 20 years later.It's strange that the scene changed to an old man, and upon closer inspection, it turned out to be a cousin again.This time, his old couple sat gloomy and listless in a simple nursing home.

When the Sancai boy was startled, a child jumped out of the copper coin, who was about the same age and height as himself, and was looking at him with a smile.Just as he was about to ask a question, the child said, "You think it's strange. I always give you a shock when I come out. You saw your cousin's family just now. This is their life, a poor life. Because your cousin Brother doesn’t manage money, so he can’t bear the responsibility of supporting his family, and let his wife and children suffer along with him.” The boy who spread wealth thought, I can’t live my life like him.

The kid went on to say, "I'll tell you a story too. There were three people who were going to be imprisoned for three years, and the warden satisfied each of them with one request. The Russians like to smoke cigars, so they ordered three boxes of cigars; the French are the most romantic , to be accompanied by a beautiful woman; and the Jew said, he wanted a telephone to communicate with the outside world. After 3 years, the first one to rush out was the Russian, with cigars in his mouth and nostrils, shouting "Give me fire, give me fire!" It turned out that he forgot to ask for fire. The Frenchman came out next. He was holding a child in his hand, and the woman was pregnant with another child. The last one came out was a Jew , he held the governor's hand tightly and said: "In the past three years, I have been in contact with the outside world every day. Instead of stopping, my business has increased by 3%. In order to express my gratitude, I will send you a Rolls-Royce!" Boy who spreads money, this story shows that what kind of choice determines what kind of life. The world always thinks that I am a cold-blooded animal, following the trend. In fact, the rich and the poor are the result of their own choices. You choose to be a rich man, And develop good financial management habits for it, earnestly overcome some unnecessary desires, and eventually you will become a rich man, and your family will also become a wealthy family; while the poor often have no plans when they are young, and spend money without restraint. So when you get old, you can only be a poor man." Said the God of Wealth.

"Therefore, I want to tell you an important concept of financial management: you don't care about money, and money doesn't care about you. You manage money all your life, and money can only manage your life." After speaking, the child shrank back into the copper coins.

A dialogue between the God of Wealth and the boy who distributes wealth tells us how important it is to be good at financial management in a person's life!When a person can pay attention to financial management in his daily life, knows how to live within his means, and knows how to allocate money, then his life will be relatively rich and his family will not suffer.On the contrary, if a person does not know how to manage money, his life can only be a mess, and his family will suffer together.How can such a person be happy?Therefore, financial management is a course that a person must take well, and it will be very helpful for your whole life.

If you don't manage money, money will ignore you. If you manage money, money will care about you.Successful financial management can increase income, reduce unnecessary expenditures, improve the living standards of individuals or families, enjoy ample economic capacity, and reserve for future retirement needs.Learn about financial management from today, and let financial management accompany you throughout your life.

Early financial management and early benefits make dreams come true
After a country wins a war, it throws a feast to celebrate its achievements.

The king said to the prince: "Son, we have won, but it is a pity that you have not done anything."

The prince said regretfully: "Father, you didn't let me go to the front. How can I make meritorious service?" Said to the king: "Excuse me, father, can I be 18 again?" The king said happily: "Very good, son, with this sentence, you have already made great achievements."

Eileen Chang has a famous saying: "Be famous as early as possible", in fact, if a person wants to achieve a certain wish, he has to leave early, because life has no assumptions, no reversibility, because time waits for no one.

The period of investment and financial management, of course, should be as early as possible!
Modern society is an economic era, or an era of wealth, and the mainstream value standard for measuring a person is wealth.A modern hero is a fortune hero!If you don't have financial awareness yet, start to make up for it!

What are the advantages of starting your finances early?
Before explaining the advantages of starting financial management early, we need to understand a very important principle in financial management, that is, the principle of time value of money.The so-called time value of money refers to the added value of money (funds) after a certain period of investment and reinvestment.Simply put, the same currency has different values ​​at different times.We can think of the so-called value as their purchasing power, that is, how much they can buy.The economic value of 1 yuan now and 1 yuan a year later is not the same, or their economic utility is different.The economic value of 1 yuan now is greater than that of 1 yuan a year later, that is to say, it is more valuable.

Why is this happening?

我们用一个简单的例子来说明。如果您将现在的1元钱存入银行，存款利率假设为10%，那么一年后将可得到1.1元钱。这0.1元就是货币的时间价值，或者说前面的货币（1元1年）的时间价值是10%。根据投资项目的不同，时间价值也会不同，如5%、20%、30%等。

Well, assuming that after one year, we continue to deposit the 11 yuan earned in the bank at the same interest rate, then after another year, you will get 121 yuan.Year after year of deposits in this way, the original 1 yuan will continue to increase, and if the period is long enough, it may be several times the original amount.This is the power of compound interest!Compound interest is commonly known as rolling interest.

time is money!

After we know the magic of time, we also understand that the return of the same fund invested 5 years ago will be different from that invested 5 years later.So the earlier you invest, the faster you will gain wealth.Even if you invest a day earlier, it will be better than a day later!This is the reason for investing in financial management as early as possible. Time is the greatest magician in the world, and its changes in investment results are amazing.Time to create wealth for you!
If you want to make profits in investment and financial management, you must take the first step.Just like two people participating in an equidistance race, those who start early can take a walk easily, leaving it to those who start later to catch up hard. This is the benefit of early investment and financial management.Early financial management benefits early, the sooner the financial management, the sooner the return!

(End of this chapter)