This is the first thing.
Save money every month and get into the habit of saving money.
If you don't have much money, pay attention to prudent investments such as funds and government bonds, which are less risky and have less investment.
If you have more money, you can consider investing in small houses or shops, but
In short, first of all, we should have the habit of saving money, but we should also have the concept of investment.
Second, I'll tell you a truth (or take it as a story to see how billionaires manage their money.)
Financial management is not to cultivate millionaires and billionaires, but to teach us a scientific and effective concept of managing money, which will make our life better day by day and bring us a sense of security and accomplishment.
Bill Gates is distressed about the parking fee of VIP parking spaces
Gates, the richest man in the world, has amassed huge assets of several countries in just 13 years, and the American media often deify him involuntarily. What exactly is Gates' secret investment recipe? How did he manage this huge asset?
Although Gates is a top computer wizard, he is inevitably "less skilled than others" in the specific operation of financial management. In order to make financial affairs not too much to contain their own energy, Gates hired a "golden housekeeper". In 1994, when Gates' property outside Microsoft stock had exceeded $4 million, he hired Lawson, who was only 33 years old, as his investment manager, and promised Lawson that if Microsoft's share price kept rising, Lawson could use more money for other investments. In addition to the $5 billion private investment portfolio, Lawson is also the investment manager of two funds donated by Gates, who donated his Microsoft shares to these two funds. Lawson's job is to sell these shares at the best price and buy bonds or other investment tools at the right time to complete this process. After the care of experts, the annual tax contributions of these two funds have exceeded the net income of the last few companies listed in Fortune 5.
Gates and a friend went to the Hilton Hotel for a meeting in the same car. Because they were late, they couldn't find a parking space. His friend suggested parking in the VIP parking space of the hotel. "Oh, this will cost 12 dollars, which is not a good price." Gates disagreed. "I'll pay." His friend said. "That's not a good idea," Gates insisted. "They overcharge." Because of Gates' stubbornness, the car didn't park in the VIP parking space. What is the reason that makes Gates unwilling to spend a few more dollars to park his car in the VIP parking space? The reason is very simple. As a talented businessman, Gates deeply understands that spending money should be just as appropriate as putting salt in cooking. Everyone knows the wonderful use of salt. With less salt, the dishes are tasteless; Too much salt, bitter and salty, even if it is only a few dollars or even a few cents, let every penny play the maximum benefit. Only when a person makes good use of every penny can he achieve a successful career and a happy life.
Warren Buffett's five investment principles
Buffett's centralized investment principle is regarded as the golden rule by many investors. But none of us have ever heard of Buffett's management theory. But in fact, if we study his investment principles carefully, we will find that these principles are also the principles that entrepreneurs should follow. I believe that with these principles guiding us to do business, every ordinary person can make amazing achievements, just as applying Buffett's principle to invest in the stock market will achieve extraordinary results.
Buffett's first investment principle is to "find outstanding companies". This principle is based on the common sense that the intrinsic value of a well-run company that managers can trust will definitely be reflected in the stock price. Therefore, the task of investors is to do their own "homework" and find out those truly excellent companies and excellent managers in countless possibilities.
the second principle is "less is more". For an ordinary person, Buffett thinks that as long as there are three companies' stocks, it is enough. His reason is also based on a common sense: the more stocks you buy, the more likely you are to buy some enterprises about which you know nothing. Usually, the more you know about the enterprise, the deeper you pay attention to it, the lower your risk and the better your income.
Buffett's third principle is to "bet big on high probability events". In other words, when you firmly believe that you have met a great opportunity that is beyond your reach, the only correct way is to invest heavily.
Buffett's fourth principle is "be patient". He has a saying that an investment shorter than five years is a fool's investment, because the value of an enterprise is usually not fully reflected in such a short time, and the little money you can earn is usually divided up by banks and tax bureaus.
Buffett's fifth principle is: "Don't worry about short-term price fluctuations". His theory is that since an enterprise has intrinsic value, it will be reflected, and the problem is only time. "Choose a few stocks that can produce above-average returns in the long run, and concentrate most of your capital on these stocks, regardless of the short-term ups and downs of the stock market, stick to holding shares and strive for victory in stability" is Buffett's concentrated investment thought.
A shortcut to becoming a millionaire
Some people think that there are about 5 million families in the United States with a wealth of 1 million dollars, and 8% of them belong to the first generation of rich people. For these people, getting rich is not about owning expensive cars and villas, but a long-term and stable income. For this reason, financial experts believe that people can tap the potential of getting rich as long as they follow some universal principles. They have summed up the following rules, which may give you some enlightenment.
Qian Shengqian method. In 1967, the Ralph brothers in North Carolina decided to raise money to open a grocery store by selling shares. They contacted 1 acquaintances, who each bought 1 shares at a price of $1 per share. More than 3 years later, the original grocery store has become a "king of food" big company with more than 1, chain stores. Its stock price was $19 per share, and 78 investors had become millionaires that year.
live within your means. In 196, when Hanto and Georgina came to America from Cuba, they were penniless. They became journalists after graduating from college in 1966. Their strategy of getting rich is to save every penny. Because bank savings are calculated by compound interest, the couple go to the bank to save money on time every month. Their life is very frugal. Discounted goods are what they often buy. They often cut discount coupons from newspapers to buy cheap things and bring lunch boxes to work. After a few years, they saved most of their income. It was not until 1987 that they put $1,25 into the same fund and became millionaires eight years later.
don't get into debt. Today, credit card companies have various preferential measures to attract new customers. Banks also vigorously promote housing mortgage loans. In the face of such temptations, it is easy for ordinary people to lose control of themselves. The price is that you owe debts and have to pay interest on them. 7% of American millionaires are debt-free, and they know that for every dollar of interest paid, there is one dollar less money available for investment. Therefore, the house they bought must be affordable and financially more than enough.
start your own business. The chances of a self-employed person becoming a millionaire are four times greater than those of the working class. The income of the working class depends on how much the employer is willing to give. People who start their own businesses can make great achievements if they are smart and capable.
long wait. If you want long-term wealth, you must have enough determination, refuse the temptation of short-term interests, and hold on to core assets. Bill Gates of Microsoft has been ranked as the richest man in the world for many years because he can resist the temptation and not give up most of Microsoft's shares. Any investor is not rich when he is on the road to becoming rich. It takes a long time to wait, arrange your own funds reasonably and choose the right investment direction, so that anyone can become a rich man.
calm down. There is no reason to make money by investing, but the rich must have a way to make themselves spend the low tide of investment. Experts have found that most of the rich are masters of playing cards. Most of them have a regular life and a stable and happy marriage. People who are interested in becoming rich may wish to keep up with their attitude towards life.
thick-skinned. The behavior pattern of the rich is different from ordinary people, and they often do things that violate social norms and cause others to hate. Sam alton, the founder of Wal-Mart, the largest retailer in the United States, often disturbs market prices. Once he seized the opportunity, he waited for an opportunity to bargain with the supplier. So suppliers all know that it is not easy to do business with Wal-Mart. Therefore, if you want to be a good gentleman, you'd better give up the dream of being rich.
eight steps to become a rich man
some people think that financial management is the patent of the rich and high-income families, and they need to have enough money before they can talk about investment and financial management. In fact, the key factor affecting future wealth is the rate of return on investment and the length of time, not the amount of funds. Charles Carlson, an American, wrote a book called Eight Truth of Being a Millionaire after investigating the family history of 17 American millionaires. The eight steps to become a millionaire summarized by Carlson are:
Step one, start investing now. In his book, he said that in the United States, more than 6% of people have not even taken the first step of being a millionaire. Everyone has a bunch of reasons when taking the first step, but in fact, these reasons are just irrelevant excuses. Some people may say, "No time to invest." Carlson said, "Then why don't you spend less time watching TV and concentrate on learning about investment and financial management?"
step two, set the goal. Whether the goal is to prepare children's tuition, buy a new house or retire comfortably before the age of 5. No matter what your goal is, you must make a plan and work wholeheartedly for it.
the third step is to spend money on buying stocks or funds. "Buying stocks can make you rich, and buying government bonds can only keep your wealth." The millionaire's experience is: don't trust those things such as gold and rare collectibles, but focus on stocks, which is the beginning of building wealth.
Step 4: Millionaires don't get rich by investing in high-risk stocks. Most of them only invest in ordinary blue-chip stocks, slowly but with low risk.
step five, make a fixed monthly investment. Make investment your habit. No matter how much you invest, as long as you make a fixed monthly investment, it will be enough to make you surpass more than 2/3 people.
step six, persistence is victory. According to the survey, 3/4 millionaires buy a stock and hold it for at least 5 years, and nearly 4% millionaires buy a stock and hold it for at least 8 years. Stocks buy and sell capital frequently, not only taking risks, but also paying high capital taxes, transaction fees, brokerage commissions, etc. "More transactions will not make you rich, but will only make agents rich."
the seventh step is to make good use of the tax bureau as an investment partner. Disliking the tax bureau is not constructive thinking, but should regard the tax bureau as your investment partner, pay attention to the new tax regulations, and be good at using tax-free investment and financial management tools to make the tax bureau an assistant for you to get rich.
step 8, limit financial risks. Most millionaires live a boring life. They don't like to change jobs, get married only once, don't have a lot of children, usually don't move, and life is not too unexpected or fresh. Stability is their common feature.
Wealth management is a "marathon race" rather than a "1-meter sprint", which is more about endurance than explosiveness. For investments that are unpredictable in the short term and have high returns in the long term, the safest investment strategy is to invest first and wait for opportunities before investing.
Shaping a good financial mentality
When learning financial management, many people pay the most attention to how to master the investment skills: how to make money from their hands, how to choose suitable stocks in the stock market, how to use investment tools such as funds, how to invest in real estate or business, how to save taxes as much as possible, how to make the best arrangements for retirement or inheritance, and so on. Yes, in order to manage money effectively, we must understand the characteristics of various investment tools and then make an overall plan to implement them, but one thing is more important than these skills, that is, to have a correct financial mentality first. If you have the wrong attitude, even if you have the best financial management method, it is often futile.
since ancient times, the attraction of money is irresistible. Who doesn't want bank deposits or net asset value to keep rising? However, people's greed is insatiable. In order to pursue money and material things, they will pay any price-family, health, conscience and even their own lives. In the 198s, Wall Street speculators publicly proclaimed that "greed is good", and the long-term rise of the stock market in the 199s made many people crazy about accumulating wealth, but they didn't know that greed was the first taboo of financial management.
greed not only leads to financial losses, but also harms personal physical and mental health and family life. I suggest that you reflect on your attitude towards financial management, and then take the time to make a careful plan for your finances and wait patiently for the harvest.
what special skills do the rich have that those office workers who scrimp and save every day and work hard every day lack? How can the rich accumulate such great wealth in their lifetime? That is: the ability to invest and manage money. The disparity in people's financial knowledge is the main reason for the real gap between the rich and the poor.
the premise of obtaining financial freedom
Only three basic conditions are needed to manage money and get rich: fixed savings, pursuit of high returns and long-term waiting.
suppose there is a young man who can save 14, yuan every year on a regular basis from now on for 4 years; If the money he saves every year can be invested in stocks or real estate and get an average annual return rate of 2%, how much wealth can he accumulate after 4 years? Most people guess that the amount falls between 2 million yuan and 8 million yuan, and at most they guess 1 million yuan. However, the correct answer is: 12.81 million, a number that surprises everyone. This data is obtained according to the formula of calculating annuity in finance, and the calculation formula is as follows: 14, (1+2%) 4 = 12.81 million.
This magical formula shows that a 25-year-old office worker can become a billionaire if he invests in this way until he retires at the age of 65. There are no complicated skills in investment and financial management. The most important thing is the concept. If the concept is correct, it will win. Everyone who gets rich by financial management just develops a habit that ordinary people don't like and can't do.
There is a saying: "People have two feet, but money has four feet", which means that money has four feet, and money chases money much faster than people do. How much money a person can accumulate in his life does not depend on how much money you earn, but how you manage your finances. The key to getting rich is how to manage money, not how to increase revenue and reduce expenditure.
At present, saving is still the traditional financial management method for most people. However, keeping money in the bank is the safest in the short term, but it is the most dangerous way to manage money in the long term. What's wrong with bank deposits? The mistake is that the interest rate (return on investment) is too low to be used as a long-term investment tool. Similarly, suppose a person saves 14, yuan a year; He deposited all the money in the bank and enjoyed an average interest rate of 5% (not to mention that we are now in a low interest rate period, and the interest rate is negligible, only 1.98% for one year). After 4 years, he can accumulate 14, yuan (1+5%) 4 = 1.69 million yuan. And the return on investment is