Be sure to find a way to get rich early!

In the last few years, I've come across an idea that's been quite subversive of what I originally thought, and that is:

We don't get richer by changing our minds, we get richer by changing our minds.

To be more precise, it should be a process in which the two influence each other and continue to circulate.

So the question is, how does the average person get richer?

You won't believe it... There is a 100% sure way to get richer.

A lot of people in front of the method not to carry out, just take some side door crooked, investment? Entrepreneurship? They will only make themselves poorer and poorer.

The answer is to save, in large proportion.

Save more = get richer = change your mind

What a simple principle!

As for what kind of thinking has changed? A lot, for example:

Looking at it makes you happy and secure, and you become addicted to saving.

Too much money and you learn to invest.

Investing pays off and you'll be willing to save and keep investing.

With money, you can't help buying time.

With money, your cognitive bandwidth will be free, and you will be more creative and courageous.

When you have money, you decide where to invest your money instead of digging around, wasting time, and obsessing.

With money, you'll be better able to distinguish between assets, liabilities, and consumption.

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All of this also makes you richer, which is how I used to feel about getting richer slowly.

I started saving money in primary school, and I saved more than 50% of what I got, whether I got pocket money or earned my own money after graduation.

Even my favorite female ticket to find discounts, after graduation began to save money and investment index, now more and more money, but the frequency of looking for discounts is getting lower and lower.

The smaller the discount as a percentage of the fund, the less incentive I have to spend time looking for deals, and the more money you have, the less time you will spend looking for deals.

Of course, you also have to work hard to make money.

Because the less of a percentage of the cash you receive each month, the less incentive you have to look for deals.

That time you could have spent looking for deals could have been spent on something more valuable, like investing.

Why do I have this idea?

Because as MY wealth grew, I realized a profound shift in my thinking, and a forced shift, not just from reading a book.

Of course, WHEN I realized it, I also thought of it all of a sudden. It wasn't something I had read in a book.

Here's an extreme example:

What would you do if you won $10 million in the lottery?

Because there is so much money, the salary from a part-time job is relatively insignificant, and you will not naturally start a business or investment activity.

To learn about investment voluntarily, because just 5% of the annual income is already 500,000 yuan, far more than most jobs.

If you increase your earnings by 1%, it will be $100,000. Is it close to what you earn in a year of hard work?

Naturally, you don't want to work hard, but choose to study and invest, which will be more cost-effective.

You didn't become rich by learning investing first. You just needed to learn investing after you became rich.

The ancients have long said, in tai Shi Gong's "Shiji · The Biography of cargo Stocks" wrote:

No money for power, little battle of wits, both rao contention

This means:

When you have little money, you can make money by selling your physical strength. When you have little money, you can make money by using your intelligence. When you have money, you must seize the opportunity to make money.

Taishigong means to use money to make money, now it means to invest, so whether you will invest is determined by your principal.

I don't have $10 million yet, but I did the math and I've accumulated about 20 times as much wealth today as I did seven years ago.

Because of my accumulation, I will pay more attention to understand what is investment, funds, bonds and other knowledge.

That's not what I originally thought, because a lot of successful people tell us:

Invest in yourself first and don't worry too much about money at this stage.

This leads many young people to spend more, without deliberately accumulating principal.

This notion is a bit of a chicken soup: the rich are "constrained by their wealth".

They don't care about money, so they don't know how important the first bucket of gold is for ordinary people.

Instead, he said, Invest in yourself, not the money.

And there are two drawbacks to this view:

1) No matter how hard you invest in yourself and how strong your professional ability is, it takes at least 3 years to accumulate wealth.

2) Not everyone can make a fortune by "investing in themselves".

There is too much luck, family background, environment and so on behind it to "invest in yourself to succeed".

So it's important to invest in yourself, but at the same time you have to care about money and consciously build wealth early.

Let me explain why.

I was chatting with a friend a while ago, and he told me that his monthly salary before tax is about 40,000 yuan.

It's not surprising to hear 40,000 yuan a month, since it's already higher than most people.

But he wasn't satisfied, and he wasn't making enough, because the money didn't accumulate fast enough.

Let me do a quick calculation:

His after-tax income is estimated at $30,000, which is $360,000 over the course of a year. With his mortgage and kids, assuming he can save 30% of his income, that's $108,000.

After calculating this figure, I still have a big touch in my heart. If I keep 30,000 yuan a month after tax, it will take me 10 years to save 1 million yuan.

In the real world, how many people have an after-tax income of 40,000 and can save 30%?

To calculate their future wealth like this is actually quite a desperate thing, as if they can only wait for a sudden fortune to befall them.

There is a very important reason for this:

No matter how strong your professional ability is, it is impossible to get rich from it.

Unless you're a highly paid job to begin with, like a doctor and lawyer.

But don't be sad, there is still hope for getting rich. With long hours of following some very simple rules, getting rich becomes very simple again.

1/ It only makes sense to keep the money that comes with expertise

If you choose to spend freely, relying on the fact that you can make money now, wealth will move away from you.

Only by keeping the money that comes with expertise can things make sense and wealth become possible.

You work so hard at so many jobs that it only matters if you can keep the money you earn from those jobs, otherwise you are draining your expertise.

Some beliefs can be deadly because they think they will earn more later, or that they will earn more when they spend, without realizing the two points above:

1) To become rich requires accumulation.

Even if my friend took 30 percent of his post-tax monthly salary, it would take him 10 years to save 1 million,

2) You can't be sure you'll still earn that much.

2/ Always invest

This is to accelerate your money, there is no investment, only professional ability, all out of the question.

Munger said there is not a smart person in the world who does not read, and Cat said there is not a rich person in the world who does not invest or start a business.

That's why I've long recommended this list: "The Ultimate 'Financial Freedom' Book List: From Getting Started to Ultimate."

In addition, in the process of learning investment, I can also master a lot of business thinking, which is of great value.

Modern society does not require a large amount of money to invest.

You can buy an index fund for as little as a thousand dollars, and then the compound interest you get gives you hope for the future, because compound interest is amazing.

If my friend had invested at work, it would have made a big difference to his life (but he doesn't, he just keeps it in the bank).

So let's say, just for the sake of calculation, he can still save $100,000 a year.

If you put it in a fixed deposit, which I'm assuming is 2%, after 10 years, the total amount you get is about 1.1 million.

Now let's assume that if he learns to invest, he can raise the yield a little bit to 6 percent, $1.31 million, 8 percent, $1.45 million, and 10 percent, $1.6 million.

I think 6% is not too difficult as long as you have some investment learning, but after 10 years, you will have 210,000 more, which is equivalent to two years less work.

Ten years may not be obvious, but let's look at 20 years.

After 20 years, a deposit of 2 percent in a bank will amount to 2.42 million won. If the interest rate is 6 percent, it will amount to 3.68 million won, 8 percent to 4.58 million won, and 10 percent to 5.72 million won.

So this is going to be very, very effective, and just 6% of the revenue is going to be $1 million more over 20 years, which is 10 years less work.

If the amount is 8 percent, the amount is almost double. If the amount is 2 percent, it is 2.42 million won, and if the amount is 8 percent, it is 4.57 million won.

Again, if you are someone who has studied investing, 6% is not too difficult.

The problem for many people is not that investment is terrible, but that they choose financial products without learning at all.

We also go to work after 20 years of education, why can some people expect to make money in investment without learning?

Of course, learning investment does not need to be like 20 years of education before work. After about 3 years of study, investment begins to mature gradually.

It's safe to get more than 6%, and it's possible to go for a slightly higher 8% or 10%.

The most naive idea, really, is to think that you can get rich by improving your professional ability, which is probably what your education or capitalist instilled in you as a child.

Unfortunately, without investment, no matter how strong the expertise is, it is difficult to achieve.

Only by saving and investing can one achieve freedom with wealth.

A lot of people may think, this is not very simple, it is saving and investing, I know.

But I think it's really not important to know the reason, you need to know the logic behind the reason, you need to figure out the difference between what you did and what you didn't do.

You know, for example, if you invest at 6 percent, you'll be $1 million better off in 20 years than someone who didn't invest, and you'll actually be willing to act, save, and invest.

My official account has been constantly sharing the importance of study, investment, financial management and so on. In others' eyes, it is not very simple.

I actually help myself to constantly dissect what I'm doing, and the more I understand the benefits and logic behind it, the easier it is for me to stick with it, or not even stick with it.

It's like someone telling you to do 10 push-ups a day and give you a million dollars in a year.

If it's 20 a day, I'll give you $2 million, and you can choose to do 20 a day without having to stick to it, because you know the payoff is certain.

If we understand that the benefits of reading books and managing money are also certain, it becomes easier to do as much as possible.