The poor are poor, the rich are rich

Chapter 8 3 Understanding the Matthew Effect and Using Money to Help You Make Money
Chapter 23 Understand the Matthew Effect and use money to help you make money
In the 20s, the well-known sociologist Morton first summarized this phenomenon of "the poor getting poorer and the rich getting richer" as the "Matthew Effect".Any individual, group or region, once it has achieved success and progress in a certain aspect (such as money, reputation, status, etc.) and has accumulated advantages, it will have more opportunities to achieve greater success and progress.And how to accumulate this advantage?Just like the 60st and 1nd servants, let the money flow and make money with money?
To make money with money, you must first have money. It has just become a new trend in society, and everything starts from scratch.In order to further study and accumulate wealth potential.Even to start a business as a boss in the future, you need a considerable amount of money, and this money usually comes from our frugality, increasing income and reducing expenditure.Therefore, if we do not have original funds, we need to rely on part-time jobs to increase our monthly fixed income as much as possible; In the shortest possible time, accumulate an initial capital that can help us make money with money.

Some newcomers who have just stepped into the society are too impatient. They engage in high-risk investment activities such as futures and stocks as soon as they graduate, and even borrow large sums of money from their parents, relatives and friends. This is a very dangerous behavior.In the case of inexperience, once you lose all your money, you will have to work harder than others for several years, and you are even more afraid of losing momentum because of this, which can be said to be a heavy loss.

When the money in your hand exceeds 10, you have probably entered the second stage of making money with money.At this time, you have been working in the society for more than four or five years, and your daily expenses only account for about one-third of your salary. Therefore, the number of your bank passbook is increasing.With the passage of time and the accumulation of experience, you will have more and more investment opportunities, and there will be more and more places for you to borrow money, and naturally you will have more and more opportunities to use money make money.

At this time, investing in the securities market is of course the best choice to make money to achieve the Matthew effect. Of course, as for how to make profits from investment, most people are neither thrill-loving adventurers nor extreme conservatism. Or, although you won’t be so worried that you can’t sleep when you have a stock in your hand, but if you have too many stocks, you will still toss and turn at night. Therefore, you can only find a few more baskets and separate the eggs.There is a buzzword that is to learn to arrange your own investment portfolio.

The investment and financial management strategy at this stage can be upgraded from looking more and not doing at the first stage to looking more and doing less. In particular, try not to engage in desperate investment; even if you expand your credit and borrow money to invest, you must at least control it within Salary is sufficient to cover monthly interest expenses and the like.Because the future is long, history will always repeat itself. Once the time is ripe and your own funds have accumulated to a certain amount, you will naturally reach the highest level of making money with money.

After you have formed your own family, you have entered the third stage of making money with money.At this stage, first of all, you must start planning your lifetime cash flow. If after careful calculation, you find that you will be unable to make ends meet, and your evening scene will be bleak, then it is inevitable to increase income and reduce expenditure, and work part-time.If you find that you have a lot of income, little expenditure, and you will have a lot of savings in the future, you might as well use part of your funds to boldly engage in the money game of "rolling money with money". Therefore, the so-called investment portfolio can be used at this stage. To the fullest.In your investment portfolio, you can divide the funds into two parts, one part is still placed in fixed deposits, living deposits, guilds and public bonds; this part will have fixed interest income every year, except for public bonds, the principal has no The risk of loss, and the speed of cashing out, can be used in emergencies.In the second part, you might as well put your funds on stocks, gold, mutual funds, and even high-risk and high-return foreign currency and futures investments.

But no matter what investment you make, you must be prepared to lose your money, and even if you lose your money, it must not affect your basic daily expenses, otherwise you will commit the taboo of over-investment and high risks.

How to make money with money and realize the Matthew effect in wealth is the big question of whether people can get rich in life. To realize the Matthew effect and become the richest of the rich, there is only one way, and that is to make money with money.

(End of this chapter)