Many people may have imagined that if one day they don't have to go to work and worry about money, they can get rid of 996 and lie flat at home and do whatever they want. Actually, that's what I thought. How much do we need to earn to lie flat? A very simple method is called the 4% rule.
It was put forward by William Bangen, a scholar at Massachusetts Institute of Technology. When your annual expenditure does not exceed 4% of your total assets, you can achieve financial freedom. For example, you need to spend 200 thousand a year, and 20 divided by 4% equals 5 million. When your assets reach 5 million, you can be financially free. Of course, this is only a rough estimate. Ben made a lot of assumptions when calculating in those years. One of the assumptions is that 50% of assets are invested in stocks and 50% in bonds, with an average annual income of around 7%.
In this way, the cash flow generated by your investment account will exceed the living expenses for one year. At this time, it is enough for you to spend 4% of your income on expenses.
Therefore, the assets measured in this law refer to assets that can generate stable cash flow.
If we have an additional source of income through investment and financial management, it will greatly speed up the process of financial freedom and make our life easier. We know that there are two prerequisites for financial management: first, you must have the principal; Second, you should have a knowledge system of financial management. Someone will definitely ask: Where does the principal come from? Don't expect to earn principal by investing. The investment is based on the territory of Qian Shengqian. You want to earn 6.5438+0 million with tens of thousands of dollars. Is it possible? The answer is yes, but it must not be an investment product accessible to the public, such as stocks and funds, but only a variety of high-risk products. But this kind of investment, we ordinary people basically can't hold it. Therefore, for us, there is no shortcut to the first step of investment and financial management. We can only move bricks well and find ways to save money. Develop good consumption habits and save our wages for investment and financial management; Investing part-time income in high-quality products and accumulating wealth is the correct way for ordinary people to realize wealth freedom. Don't think it is too difficult to save money, it depends on how much you are willing to pay for the future. I hope everyone can lie flat with confidence and do what they like.
Did you save money today?