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Teach you how to make money grow and achieve financial freedom.
Today I will share 10 methods to easily cope with how to make money work for you and achieve financial freedom.
01. Stop excessive consumption
The core of financial investment is to make money work for you. The first step to making money work for you is to have capital.
To have principal, you must first stop overspending.
02. Increase good spending and reduce bad spending.
Good expenditure is spending money that can bring you an inflow of money afterward. For example, paying to learn how to drive; once you've learned, you can work as a driver and earn money.
Bad spending, buying brand-name bags, spending all your income. Bags do not bring income.
03. Delayed payment is good debt
Should you pay off your mortgage early? The answer is no.
Because the money used to pay off the mortgage early can be used to purchase income-generating assets to earn interest returns.
04. Reduce expenses
The two directions of having principal are: saving resources and opening up flows.
Source of the festival: Do not become a moonlight clan, allocate your income rationally. (Analyze each of your expenses)
05. Use independent accounts for asset allocation
Asset allocation is divided into 5 parts:
1. Cost of living
2. Risk Protection
3. Pension
4. Education Fund
5. Investment and Financial Management
06. Ensure health risk protection
Health is the foundation of a person.
One should not jeopardize their health for current pursuits, as it is not worth the loss; later on, having money to buy health may not guarantee success.
07. Know about compound interest, the power of time.
Compound interest is interest on interest, which refers to the method of reinvesting both the principal and the interest earned from a deposit or investment for a new round of investment. The greatest allure of investing lies in compound growth.
08. Rational Investment
1. Have systematic financial management knowledge.
2. Will calculate the price well and wait.
09. Control Your Mindset
Having a good mindset is essential for investment and wealth management.
Have good patience. Don't always think about getting rich quickly; a bad mindset often leads to huge losses in investment.
10. Continuous Learning
Learn knowledge and monetize it. A characteristic of knowledge is that it is also compounded.
I hope we can gradually become wealthy together.