Abstract: In the last class, we said that the difference between the rich and the middle class is that the rich know how to make money work for themselves, while the middle class works for money. But it is not easy to make money work for you. You must first accumulate enough money. So how to do it?
In the last class, we said that the difference between the rich and the middle class is that the rich know how to make money work for themselves, while the middle class works for money. But it is not easy to make money work for you. You must first accumulate enough money. So how to do it?
First of all, we need to have a wealth plan. How much do I want to accumulate in the next few years or even decades, and what goals do I want to achieve at the same time? For example, how much does it cost to buy a car, save a sum of money for your children to study abroad, or even buy a house. Only having a clear goal can push you to implement it.
Secondly, reduce unnecessary consumption, let alone borrow money for consumption. Many times, consumption that seems to be a good experience and respectable will not bring you substantial benefits, and may even be harmful to your values. For example, if a young man who has just graduated from college drives a nice car and wears a famous brand, then in the eyes of his boss and colleagues, this kind of person is just trying to make a fool of himself. This kind of money spent will not earn him respect. On the contrary, it is all contempt. Some of the same pair of shoes cost more than 2,000, while others cost more than 200. Apart from the brand, is there really such a big price difference in the actual feeling of wearing them on the feet? Many times, the money spent for face is actually unnecessary. If you can change it, I believe many people can save a lot of money.
Third, you must establish a savings mechanism for yourself. This is actually very simple, but few people do it day and night. Let me tell you a very simple way, which is to save part of it as soon as you get your salary. There is no difference between people who save and those who don’t save in the short term, but in the long run it may be a huge difference. There is an example cited by many public accounts. At that time, there was an employee of the UPS Express Company in the United States named Johnson. He entered the company in 1924. At that time, his salary was US$15,000 a year. He would insist on it every time he was paid. Spend 25% to buy UPS stock. Finally, when he was 90 years old, the market value of the stocks he owned was close to 80 million U.S. dollars. If he had spent the money before, he might still have to worry about his pension after retirement. Everyone should watch this story directly Now comes the difference between saving and not saving.
Of course, accumulating wealth does not make you a miser. In fact, there is a correct way to open it. In the next lesson, we will tell you how to accumulate wealth correctly.