? One of my annual plans for 2018 is to gradually realize "making money while lying down". I hope that my little idle funds can "make money from money", gradually increase asset income, resist inflation, and work towards financial freedom.

? In 2017, I purchased a membership to Wu Xiaobo’s channel. One of the benefits of being a member is the regular “Xiao Classroom”, which contains several financial management classes. I feel that I have benefited a lot.

At the beginning of 2018, I plan to compile some of the issues that I think are very good with notes and share them with everyone.

? What I compiled this time was what Huang Shiquan (Johnny) shared on Wu Xiaobo’s channel on October 10, 2017.

Johnny is now the general manager of Youtuo United Enterprise Management Consulting Company. He was the president of Zhubei Branch of Standard Chartered Bank (Taiwan), a seed lecturer at Standard Chartered Bank Education and Training School, and the business manager of Cathay Life Insurance Company. He has rich investment experience.

Johnny's sharing is mainly divided into three parts: defining our idle funds, avoiding big pitfalls of loss, and finding a way to make money that suits you.

How can we use idle funds to work for us?

In fact, it is to establish a "money-making system" that is open 24 hours a day.

Before sharing this system, we need to clarify our own understanding: First, investment profits require time to accumulate and cannot be achieved overnight.

The second is to use idle funds. This is very important. If you use the money you use to maintain your life to invest, if losing money affects your life or even your life, it is better not to invest.

The third is to put it in the right position, which requires us to continue to learn and pay attention to investment, and not be lazy.

The fourth point is also very critical. You are responsible for your profits and losses.

That is to say, we must learn to evaluate our own affordability, evaluate investment products, choose products that suit us, and formulate entry times and stop loss points that suit us. We cannot follow others' opinions and follow the trend of investment.

? What are “idle funds”?

Johnny divides the use of our funds into four levels based on investment status: accumulation period, investment period, replication period and stable income period.

This classification method is very pertinent and down-to-earth.

The accumulation period is the starting period of investment. We must not only invest in the "pocket", but also invest in the "brain". Investing in the pocket means to find or set aside starting funds that can be invested. The earlier the better; investing in the brain means to start learning various things.

Develop investment methods and methods, and be mentally prepared to lose money.

In the second level investment period, the funds in this period are divided into two parts. The first part is like the "down payment" for buying a house, which is relatively fixed. Our goal in this part is to "defeat inflation". It is recommended to buy capital-guaranteed or make a stable investment.

The second part is the net inflow of cash flow, which is the surplus after deducting living expenses from our fixed salary income every month. At least 50% of this money can be considered to be used to "make quick money", such as buying partial stocks.

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The third level is the replication period. What needs to be considered at this stage is to reserve funds for medium-term goals. At this time, investors already own a house and have begun to understand some complex financial products. The goal of this stage is to "opportunistically replicate" and retain sufficient funds.

After half a year of living expenses, make investment allocation, allocate part of the assets for bold investment, and then allocate part for "keeping money", and put the profits from the bold investment into value-maintaining and value-added investments such as dividends, safe capital preservation, or real estate; one thing is very important at this time.

It means retaining enough cash flow, having the courage to admit mistakes, and stopping losses in time in case of investment mistakes.

The fourth stage is the ultimate stage of investment. At this time, there are several houses collecting rents and stable dividends, the appreciation of large funds is on the right track, and the cash flow generated by non-labor is greater than the living expenses, that is, basic financial freedom is achieved;

At this time, if we continue to invest and continue to roll the cash flow generated by non-labor into the investment layer or replication layer, we will eventually achieve financial freedom!

Many people have invested for many years, but they often hear that they "didn't make any money." Some people even say that they lost a lot of money. This requires us to avoid several big loss pits.

The first is the allocation plan. You must allocate short, medium and long-term capital plans. The short-term is your living expenses for 6 months and keep cash; the medium-term is the funds that may be used in 1-3 years. This part needs to increase the income.

It is necessary to set a profit stop point (such as 15%) and exit when the point is reached; long-term refers to funds that are not used for more than 3 years, focusing on value preservation and generating interest, such as blue chip stocks, real estate and high-quality bonds.

The second pitfall is to evaluate yourself. If you are conservative and have trouble sleeping and eating when you lose money, don't consider investing and just do it regularly.

The third pitfall is that the internal structure of the product is unclear. Generally speaking, the more complex the product, the greater the risk. If you are not clear about an investment, you would rather miss it than make the wrong investment.

The fourth pitfall is very important, that is, you must have a personal insurance for yourself. No matter how strong your earning power is, it is not worth your own safety. You cannot leave the risk to your family. Finally, you must keep enough cash and cannot throw away all the cash.

Both are used for investments, especially risky investments.

? How to find a way to make money that suits you?

Investments are mainly divided into equity categories (stocks, funds); fixed income categories (such as bank fixed-term; some financial products) and real estate.