Friday, October 29, 2021

45.6 billion money game! What "Squid Game" teaches us … (spoilers alert)


It took me two days to finish watching the hottest Korean drama "Squid Game" in Netflix.

There are only 9 episodes, the whole series is relatively short, and it can be watched within a day. It started with 456 players participating in six rounds of the game for the 45.6 billion won prize, and through elimination, there was a sole winner.

The weaknesses of human nature were fully exposed, and the contrast between good and evil makes people dwell deeper, thinking about life depicted In those childhood games.

And in this drama, we see the cruelty of debts giving an important blow to life, making people risk their lives for the sake of money.


What financial enlightenment does this drama give us?

1. At any time, don't develop the psychology of gambling

In the first episode, the protagonist is described as a person who is idle, loves to gamble, and lives off his mother. Because he loves to gamble, he is into of debts. His mother also has to share his burden of debts and not only that, he also secretly takes her pension money to bet on horses.

In order to raise money for his mother to perform surgery, as well as giving his daughter a decent birthday gift, he went to participate in the game, trying to change his destiny.

The majority of those 456 people have taken on huge debts and are unable to pay off their debts. They have no hope, so they come to participate in the squid game. They don’t know that an "opportunity" like this is equivalent to entering ‘hell’.

Getting rich overnight is like a dream. However, it comes with high risk. if they don’t choose to play the games, they will be chased by loan sharks. If they choose to play games, they will use their lives as the bet.

“According to the Bank of Korea’s data, the total household debt in South Korea exceeded 1800 trillion won in the second quarter of this year, a record high in a single quarter, an increase of 41.2 trillion won from the end of the previous quarter. In addition, South Korea’s household debt accounted for The GDP ratio has reached 105%."

In reality, many people have the psychology of gambling and will want put their money in speculation. The real investment is to do a lot of background work, accumulating money bit by bit through careful analysis.

Do not have any gambler psychology. Just one failure is sufficient to destroy you and your family. Do not use high leverage to trap yourself in a situation where you will never recover.


2. Reasonable budget and spending, don’t let excessive consumption overtake your life

Most participants are burdened by loads of debts. If you want to stop having debt, first review  your own income and expenditure.

When spending exceeds expectations, you must adjust, reduce unnecessary spending in the future, try not to spend future money, use as much as you earn, and face your own financial situation objectively.

When you already have debts, don't let it roll. The first task is to solve the debts, and then consider investment or other goals.


3. Never underestimate compound interest, persistence is ultimate victory

At the end of the game, the protagonist won a prize of 45.6 billion won.  He is almost a person who can make money while not having the need to work and let money do the compounding work. But the practice of compounding interest is long and painful, and this process will take ten, twenty, or even thirty years. You can't experience the happiness like winning the lottery which is immediate.

The world’s richest man Buffett once said, “It’s easy to decide one thing, and it’s also easy to give up halfway. The only way is persistence.”

Investment is a game in which everyone can participate in, but in the end, only a few people make money.

Why? Most people were eliminated by the market ruthlessly because they couldn't stand the torment of time and emotions.

Many plots of "Squid Game" are derived from reality. You think you are just a movie viewer, but in fact, you are already in the real "Squid Game".

Warren Buffet's 10 classic Ideas

Warren Buffet's Time management

Listen: Podcast

Friday, October 22, 2021

The truth about shopping you didn’t know: buying expensive stuff is saving money

The truth about shopping you didn’t know: buying expensive stuff is saving money

Many of my friends say that tracking income and expenses is to save money. Trying to save every penny to buy the cheapest things? Wrong, buying more expensive item not necessarily cost more, but maybe it will save more money!

Many people have this experience, go shopping in a big shopping mall, and have eyes set on a certain piece of clothing that may be too expensive.

So he returned home and began to browse shopping websites to see other styles of clothes at cheap prices. He didn't hesitate to place an order due to the difference in price this time.

If you want to buy a laptop, you may go to a physical apple store  but subsequently buy a cheaper version similar to macbook.

These items were purchased under the influence of the idea of ​​"compared to expensive things, they are so cheap." In order to save money, I always buy cheap things I don't like in the past. I buy something not because I like it, but because it is "cheap" and "affordable."

Thus I ended up with lots of clothes and cosmetics that I don’t really like and use. They will eventually expire or go outdated.

So, if you buy the most expensive things within your affordable financial range, you will eventually find that this is actually the most cost-effective. It seems to be contradictory, how to buy expensive stuff and yet  save money?

Let's look at a case study: A and B are two friends who went shopping together and they both set their eyes on a particular coat.

A didn't hesitate to buy it, but B hesitated for a long time, but it was too expensive and decided not to buy it. After returning home, B spent an afternoon on online shopping to find a cheaper piece with similar design. It did seem that B will save more money.

When the coat arrived, B tried it on, and found that he looked bloated. So the clothes were only worn once and placed in the cabinet. On the other hand, A was quite satisfied because of the fitting at that time, and a year later, he was still wearing it.

Therefore, there is only a small amount of clothes in A’s closet, but he lives exquisite, elegant, and high-quality. B’s closet is full of clothes. Every year, he keeps buying, but he always complains about the cheap prices. The quality of the goods is not good.

The difference in consumption concept leads to the difference in life. B looks as if he is very cost efficient, but actually spends more.

Sometimes, cheap goods are like a black hole, devouring your time endlessly.

For those who are pursuing things at low prices, what is the most lacking? Money!

But in fact, what is the most priceless? Time


For those who consume wisely, time is the most precious. Because money can be obtained in multiple ways, but time has passed, we can no longer turn back time even how rich you are.

Just like the above case, when B spent his energy to shop around, A can choose to write an article earned some income. Not only did A get extra income, but also because of the published articles, he gained more fans and increased his reputation. The things he got invisibly was much higher than the money saved by B.

Second, you get what you pay for

The reason why the item is more expensive, surely has a reason behind it.

Third, we will cherish expensive things and try to extend their usage

You spend a lot of money to buy a new iPhone product, you will buy a mobile phone case, a mobile phone film, and protect it. A small bump will make you feel distressed. And when you buy a cheap phone, the care  for it will inevitably lessen. This is true for mobile phones, clothes and shoes, etc.

Finally, expensive things give you different experiences and even change your attitude towards life

The good things can bring to you satisfaction far exceeding the money you paid. From the authentic bags, you can feel the softness and exquisiteness of the leather and the meticulous sewing. Wearing a mulberry silk dress, the drape fabric makes you feel comfortable.

Over time, Once you no longer used to setting cheapness as the criterion for considerations, you dare to set higher goals to make yourself live a different life. This can stimulate your fighting spirit even more.

So, starting from today, consider throwing away those cheap things, don't let them consume your energy & space which you wont be using it anyway. You deserve better.

So are there any money-saving techniques that can be used in life?

They are:

1. Only buy "you need, you fit, you like

2. Buy at the right time

3. Cheap is not necessarily saving money

4. Do you treat it as consumption or investment?

5. Work hard to make money!

Our goal is to save money, not to be poor; to have a quality life that is not wasted. Therefore, the support of high income is always the best and most basic.

Read Also:

Do you feel happy spending money?


The Truth about Shopping

Friday, October 15, 2021

Warren Buffett's time management: the free-er, the rich-er

When Bill Gates met Warren Buffett for the first time, Gates' mother asked them to share the most important factors for their success. Both Gates and Buffett gave the same answer: "Focus."

Warren Buffett follows the 5-hour rule, and when he spends 80% of his time reading and thinking, many people’s reactions are predictable: "He can do this because he is Warren Buffett. One of the richest people. I will never reach that point, nor can I do that."

Because the fact is: Buffett has spent most of his time reading and thinking since elementary school. Owning more money or managing a large company does not give you more free time. Free time, never appeared silently. Unless they retire, people will not have a lot of free time. On the contrary, free time is the result of a strategy, the result of looking at time in a different way. Regarding his book and most of the annual letters he wrote to shareholders, it is clear that the reason why Buffett can easily make such a schedule is because he used the most ruthless prioritization method in the world, which of course is a good way.

Here are six strategies Warren Buffett has adopted during his career in order to have more time to read and think. I invite you to "copy" them so that you have more time each day to do the things that are most important to you. When you read these strategies, one thing to note is that these strategies are not like the typical combination strategies you see on the Internet, they are not random. Most people have overlooked a deeper model-his primary mental model.

Buffett strategy 1: Kill busy work

Buffett has crossed out almost all tasks that the CEO must complete from its schedule:

He never talks to analysts (Buffett estimates that a typical CEO spends 20% of his time talking with Wall Street analysts).

He rarely accepts media interviews.

He does not participate in industry events.

He has lived in Omaha, Nebraska, a place outside of New York City for almost his entire career.

He hardly attends any internal meetings like a typical CEO.

The important thing is that these decisions did not happen by accident.

There are several basic facts about Buffett’s strategy: 20% of priority tasks will account for 80% of our results. Buffett’s top five goals are 20% of the 25 goals.

The real threat to our time is not simply the interference of things that we know are wrong. On the contrary, the real threat is those "wolves in sheep's clothing"-these activities make us feel like we are working hard, but in the end they cannot change the status quo. Buffett's "three-step" method is to prevent this!

The real challenge of prioritization is to say, "No!" It is easy to promise. What is really difficult is to say no to busy work, because busy work can make you cross one item from the to-do list and feel satisfied: fulfill your obligations to others, do a simple thing, write an email .

Buffett Strategy 2: Only work with people you think you can work with forever

"If you can't imagine that you can work with someone for a lifetime, then don't work with them for a day."-

Similar to Buffett's strict review of his work activities, he also conducts strict review of those who work with him.

Buffett only works with CEOs he trusts. These CEOs can achieve results, and he thinks he can work with them for decades.

Therefore, before acquiring a company, he rarely conducts negotiations and due diligence, and does not interfere too much with the CEO of the company he has acquired. In addition, he enjoyed the conversation with the CEOs.

(Note that the word "trust" has made Buffett give up buying many companies with attractive financial conditions, just because he doesn't trust the CEOs of these companies.)

Buffett Strategy 3: Keep things super simple

Buffett has eliminated almost all the bureaucracy in his company. Berkshire Hathaway’s portfolio company has nearly 400,000 employees, but its actual headquarters has only more than 20 employees. This is one of the largest companies in the world.

Buffett's personal life is also very simple. He lives in a humble house (he has lived there for 60 years), and his personal expenses are low.

In our careers, in our company, in our lives, it is very easy to make things complicated. In fact, this is the norm.

When you get more profits, it's normal to hire more employees. As you make more and more money, it is normal to spend more and more money. What is truly powerful and unique is to keep things simple. This requires effort and skill. This is also part of Buffett's strategy.

It is strange to say that when you compare the lifestyle he may live with and the lifestyle he chooses, one of the richest people in the world is also the biggest minimalist.

Buffett Strategy 4: Focus on a few high-quality bets

Warren Buffett only makes a small amount of investment each year.

I remember the first time I heard this news, I was shocked. ``How could the richest investor in human history only make so few transactions?''

The founding partner of the Housatonic Partners fund, William Thorndike (William Thorndike) gave us the answer to this question in his book "The Outsiders":

Buffett believes that a concentrated investment portfolio will bring extraordinary returns, and excellent investment targets rarely appear.

He has told students many times that if they get a card with only 20 holes at the beginning of their career, which represents the total amount they can invest in their investment career, their investment results will improve.

As he concluded in his 1993 annual report, "We believe that if the policy of making the investment portfolio more concentrated can increase the investor’s intensity of thinking about a company, it will also increase his satisfaction with its economic characteristics before buying the company. Then this policy is likely to reduce risks.”

In short, Buffett means: "The trick to investing is to be there, watch the ball one after another and wait for the ball to reach your best height. If people shout, "Swing, you fool!" , Just ignore them.

Buffett Strategy 5: Focus on long-term investment

Buffett will hold his stock for a long time.

According to William Thorndike in his book "The Business Outsider", he currently holds the top five stock options for an average of more than 20 years.

In contrast, the average holding period of a typical mutual fund is less than one year. This means that investment activity is at a very low level, which Buffett calls "almost lazy inactivity."

Buffett has also used a similar concept in knowledge investment, which has brought him long-term returns. In Buffett’s only authorized biography, his biographer commented on what she learned from Buffett:

What you learn and invest in should be knowledge that can be accumulated, so that knowledge can be built on the basis of knowledge. Therefore, instead of learning something that may be out of date tomorrow, such as a certain type of software (no one will even use it in two years), it is better to choose something that will make you smarter in 10 or 20 years. I have been benefiting from this lesson now.

Buffett strategy 6: Avoid catching up with the technological trend

One might think that the greatest investor in history will always seek to master the latest technology in order to stay at the forefront of the times.

Interestingly, the opposite is true. Here are some examples:

There has never been a computer in his office.

He has never used a stock ticker.

He does not have a smartphone.

These unique choices reflect some of Buffett’s characteristics: Buffett is very clear about what data he needs to know in order to invest.

He has enough confidence in his own ideas, and he is unwilling to do things that are popular with the public.

He actively eliminates potential interference from the environment, rather than relying on willpower.

How to apply Buffett's core mental model?

Now, you understand. It is not accidental that Warren Buffett has reading and thinking time. His life was designed for this.

These are not random strategies... They all come from an important mental model: the 80/20 rule. In fact, 20% of our efforts will bring about 80% of the results in many areas of our lives.

In every area of ​​his life, such as interpersonal relationships, investment, technology, and setting priorities, Buffett is a master who ruthlessly prioritizes a few important matters and abandons everything else.

So, the question now is: how do you apply the 80/20 rule consistently and skillfully to your life.

Listen: Podcast

Friday, October 8, 2021

Warren Buffett’s 10 classic ideas, learning to think like him

1. First understand, then act

The first one may be obvious. Warren Buffett put it very simply:

Never invest in businesses that you do not understand.

——Warren Buffett

 Never invest in ideas that you cannot understand.

You often see people who want to become artists, musicians, or other creative fields and one of their first impressions is that in order to be successful; they need to spend money on the best equipment.

People who like to paint will think that to become a good artist, he needs to spend thousands of dollars to buy the latest graphic tablet with integrated screen. Similarly, a new guitarist will also spend huge sums of money to buy expensive music equipment endorsed by a superstar.

This is not right. You don't need fancy equipment. A good musician can even play the worst guitar beautifully. A great artist can surprise you with an old ballpoint pen and a piece of shredded paper.

First of all, don't put your hard-earned money into such endeavors. Make sure you are determined to meet the challenge and can stick to it.

You can consider spending some spare money to invest in courses and training instead of expensive equipment. The equipment may be damaged at some point, but the lessons you learn will always be with you.

This leads to Warren Buffett’s next piece of advice, which is also the one most frequently cited-

2. Invest in yourself

Warren Buffett himself has said many times that this is the best advice he can give others.

The most important investment you can make is to invest in yourself.

——Warren Buffett

You are your greatest asset. Any investment that can help you improve your skills and learn new things is a worthwhile investment.

You can always monetize your knowledge-whether you learn programming through intensive training courses or a second language, you are now proficient enough to be a freelance translator.

By investing in improving your own skills, rather than buying new tools, you will become a more valuable asset for a long time to come.

There is a famous saying: It is better to teach people how to fish then  to fish for them

By focusing on improving your skills and spending a little time every day to learn new things, you can open up new business opportunities for yourself, enter new markets, and discover new possibilities.

3. Focus on one thing

Some of us may be good at doing several things at the same time. However, when you choose a career or something you want to pursue seriously, you should not be distracted elsewhere.

In the investment field, many people are often advised to "spread" their assets, as the old saying goes: "Don't put all your eggs in one basket."

For Warren Buffet, this suggestion is futile. He replied:

Diversification is the protection of ignorance. If you know what you are doing, there is actually no need to diversify your investment.

——Warren Buffett

If you do one thing well, you don't need any backup plan. They only consume your energy, and you could better invest those time and energy in what you are doing.

For people like me, this means focusing on one thing and sticking to it. What I personally lack sometimes is the effort and self-discipline necessary to persist in doing one thing. I didn't get the result I expected right away, so my motivation dropped and I invested less and less until I gave it up completely.

Success is not achieved overnight. If we want to succeed, we must put in a lot of effort. If you don't make any immediate progress, don't be discouraged. Keep going and you will see results sooner or later.

Don't be distracted to do other things. If you are too distracted on your main goal, you will waste time, and it will even take you longer to reach the goal, which may make you even more discouraged.

4. The meaning of price and value are not the same

It is often difficult for us to find something at the right price. But Warren Buffett believes that we should not prioritize price at all. Instead, we should focus on the value derived from it.

The price is the price you pay. Value is what you get for the price.

——Warren Buffett

In fact, this sentence applies everywhere, not only in the field of investment. Don't just see the price tag, but also the value behind it. Because the two are not always the same.

You can find two marketing courses. The price of a two-hour course is US$40, and the price of another course of approximately the same time is US$250.

From the price tag, the $40 course is much cheaper, so what is the quality? You will most likely learn something that is outdated, or something you could have spent an hour learning on your own on Google.

At the same time, more expensive courses may cost you a lot of money now, but the knowledge and skills they share can earn you ten times that in your future.

Ignore the price (whether it is cheap or expensive) and only try to estimate the real value you get from the payment. This is the basis for the most decision-making.

This "law" also applies to you as a freelancer. You may think that setting a cheaper price for your work will have more benefits. For example, there will be more customers willing to pay, so there will be more income overall. But you probably underestimated your true value. You may have made some money through excellent work, but have you really made the money you deserve?

If the quality of the things you provide is good enough, higher prices will not necessarily turn consumers away. Some people may decide not to adopt you because you are "too cheap". Although it may seem counterintuitive to ask for more than your competitors, you will find it worthwhile.

5. Don't neglect quality just to save money

The following advice is part of Warren Buffett’s personal investment strategy, but it is not just for acquiring companies. It is far better to buy a good company at a reasonable price than to buy a reasonable company at a good price.

——Warren Buffett

This article is somewhat similar in concept to the previous suggestion on price and value. Your first reaction maybe is to choose a cheaper option. But cheaper does not always mean better. 

When my coffee machine broke down (a cheap $10 coffee machine in the store), we went to buy a new one. I took a fancy to a coffee machine from Nescafé, but it was priced at more than $80, so we decided to change to a $20 coffee machine, thinking that it Is merely a coffee machine and we can use the money in better places.

In about 3 years, this cheap coffee machine broke down. We replaced it with another cheap coffee machine for $15 in accordance with our philosophy, and we did that several times. In the end, we spent a total of more than 100 US dollars on the coffee machine, and then used it for a few months on average before having to replace it with a new one.

In the end, we chose an expensive coffee, which is not only of good quality, but also tastes better subjectively.

If we had long understood the difference between price and value, we could have saved some money.

Therefore, be sure to keep your eyes open when facing cheap offers. You may be familiar with phone shopping and the "unbelievable" offers they offer you. "This amazing mattress costs $250, since it is on fire sale, so you can buy it now for only $100!"

This is a common marketing tactic. The mattress was not worth $250 from the beginning, and the company certainly wouldn't spend that much money to manufacture or import it. But they make you feel an urge to buy.

So, don't be fooled by things like discounts, premium packages.

Don't buy a mediocre "company", just because they offer you a good price. Look at what is hidden behind. Then make your judgment.

6. Learn to say "no"

This is also a lesson you learn from people who want to help you become a better entrepreneur, freelancer or employee.

Especially when we first started working, we wanted to please everyone. We tend to promise any help others might ask of us. Our workload exceeded our capacity, and as a result, we were under more and more pressure, but we did not receive the gratitude or recognition we expected. The difference between successful people and truly successful people is that the truly successful people say no to almost everything. You must control your own time, and you cannot let others set your life schedule.

——Warren Buffett

The most difficult thing—especially when you try to become your own boss through freelancing and entrepreneurship—is to stick to your position. You need clients, so objectively speaking, you will accept most of the job offers you get, no matter how ridiculous they are.

If we say "yes" too often, we won't get the recognition we expect. Sooner or later someone will abuse this fact. The price we pay is unpaid overtime, work more than we get paid, and solve problems for others for free. Our personal morale and private life will be greatly affected, and we will drift further and further away from our dreams.

Learn to say "no". Some people may think you are unreliable or selfish. But in any case, these people are not good partners for your career. To others, your ability to refuse may even be attractive. You know your worth, and you stick to your position. People will accept the fact that they have to pay for your services. In every office, there is a guy who does everything for everyone. He came early and left late. Don't be that kind of person. Believe me, he must be unhappy when he goes home.

7. Don't blindly believe in others, especially those who want to "help you"

Almost everyone has an ulterior motive. If you are as naive as I am, you will often fall in love with people who look like saints, and they just forcibly give us their agenda.

——Warren Buffett

Now there are those big swindlers who fool you with their’ success’. Who doesn't want to make money every day? But if you believe those who claimed that they succeeded, then congratulations, you have been conned by them.

Be careful with the people you trust and the suggestions you adopt. Try to observe what they did and how they did it. If they preach the same thing over and over, they may be eager to get money out of your pocket.

Chances are that you help them more than they help you.

8. Invest in things that align with your own values

Warren Buffet mainly buys stocks in companies he personally likes, and he also agrees with the ideas of these companies. He said: Why not invest your assets in a company you really like?

——Warren Buffett

It feels great to make money with something. But if you are not fully committed, you will quickly lose your initial passion. If you want to be a writer, don't ignore the subjects you really like and just cater to the market.

Don't rewrite a sentence that you think is good because someone tells you they don't like it.

No matter what you do, you should put yourself and your own satisfaction first. If you feel trapped by a job you hate, don't waste time complaining. Don't think that there is no way out. There is always a way out. Although finding a way out can be difficult, if you focus, you can make changes—remember, find something you like to do.

If we like to do something, it will be ten times easier to do.

Don't sell your soul to make some extra money, remember to buy only the companies you like.

9. Don't stay too long in the past failures

You may have lost a customer because you asked for "too much money" (in their opinion), or an article you wrote didnt receive any attention.

Or you did something that you regret afterwards. But you have to know that even Warren Buffet has experienced failures. In the business world, what you see in the rear mirror is always clearer than what you see on the windshield.

——Warren Buffett

It is easy to find mistakes afterwards. It's just as easy to indulge in past failures too much. It's one thing to learn from your mistakes. This is normal, and it is the main motivation for us to try to do better next time.

However, if we are too entangled in past failures, we may subconsciously let ourselves face more failures in the future. Rather than spend time on the wrong place, it is better to try to improve your program and try again.

It's the same as Warren Buffett's rear mirror metaphor: if you drive too fast and miss a good opportunity, you may end up seeing this opportunity getting smaller and smaller in the rear mirror.

But if you look back for too long, you may accidentally miss your second chance.

So, don't look back for too long.

10. Don't put success and money above everything else

To be honest, for a person with more than $80 billion in assets, this sentence seems easy to say, but it is still true. For Warren Buffett, money itself is not a true sign of success: If you are my age, no one has a good impression of you, and I don’t care how many bank accounts you have, your life will be a disaster. Among the billionaires I know, money only allows them to show their basic qualities. If they were bastards before they were rich, they are now bastards with a billion dollars.

——Warren Buffett

There is nothing wrong with dreaming of becoming a millionaire or billionaire. We are all fighting for success. The worse your financial situation is, the more excited you are when you imagine huge wealth.

The most important thing here is to keep your mind in the right place. Don't sell yourself to make money.

You must know the phrase "money can't buy happiness", but you are often refuted by saying, "I would rather sit in a Lamborghini and cry than on a rusty bicycle."

I don't care where you cry. The bottom line is, you are crying. There is a big problem in your life. All the money in the world is not enough to solve this problem.

Emotionally, I agree with this suggestion. I am surprised by all millionaires and billionaires. But only those who show human dignity and admirable character, I will respect them. Warren Buffett is one of them. Elon Musk is another example of doing everything possible to achieve good goals.

I wish you all the best. 

Part 2:

Listen: Podcast

Monday, October 4, 2021

Money is not saved, but earned. How many people were deceived by this?

 "Money is not saved, but earned!"

I don’t know since when, more and more people began to spread this theory. At first, it seemed to make sense:

As long as you earn enough and spend not too much, you can always save money in the end.

Conversely, if you fail to save money, it must be because you haven't earned enough.

However, let's think about it carefully, who are the ones who usually say this?


01     Who are advocating that saving money is useless

1. Merchants desperately trying to empty your pockets

The logic is very simple. If everyone has to save money and stop spending, who can make business without people consuming?

Look at the pervasive consumerism now:

Watch a live broadcast, the internet celebrity will bring you the goods, "OMG! This lipstick is too good-looking, buy it!”

Take a look at your instagram feed, "Buy 3 and get free shipping!"

Not to mention the various holidays, no matter what kind of events, Valentine’s Day, Singles’ Day, Mid-Autumn Festival, Christmas and Chinese New Year, they are all becoming shopping carnivals

2. Rich people

The rich earns money even when they are sleeping. Basically, there is no need to save money. All they need to do is how to make more money from the existing money.

3. The people who lives on paychecks to paychecks and can't save money

This wave of "rich poor" is the most pitiful. It seems that the income is not low, but in fact, there is no family background. The scariest thing for them is to live less glamorous than others, so they try to cover it with high consumption-at least in terms of the quality of life. Seeking an equal footing with the middle and upper classes of society.

Many young people, under this kind of thinking, will consume more. When they see the new mobile phone, grab it! Internet celebrity restaurant, eat! Limited edition bags, buy!

At this time, consumption is no longer what you need, but what others "arrange" what you need and you feel what you need.

And it should be noted that the consumption here is more of enjoyment consumption rather than investment consumption. That is to say, nothing was left except those bright and beautiful photos in your instagram.

To make matters worse, this lifestyle will only drag more young people into the vicious circle: working 996 for the sake of money, consume desperately as soon as they get their paychecks, or even consume in advance, falling into an endless cycle of today and no tomorrow.

In this way of life, it seems that you are also working hard to get a promotion and salary increment, but in essence you have been rolling on the line of absolute poverty, and you are getting farther and farther away from financial freedom.

02     Saving the first pot of gold

In the past, our friends have shared their asset allocation plans many times, and each time there will be the same type of comment:

"The passive income is so high, it's not because the principal is high enough"

"If I had so much principal, my financial income would definitely not be less than theirs"

But have you ever wondered, where does this principal come from?

Except for the talented people who make money, such as the richest man or something, he can earn one hundred million but most people are actually ordinary people. Ordinary people mean that the income will not be too high, and the ways to make money are limited.

Once the consumption is excessive, it is possible that the income will not cover the expenditure. If you don't save money, where does the first pot of gold come from?

Another part is more pessimistic. If you are poor and has no savings. It is better to use this money to invest in yourself and increase your income.

However, first, if you don’t accumulate little by little, you can’t reach far. It looks like a small amount of money, but it can always turn into a huge amount of money. We must believe in the power of time and compound interest; second, if we can use investment consumption to replace enjoyment consumption and improve ourselves , It does sound excellent, but how many people can do it?

If you don’t save money, you will never experience the happiness of wealth growth, and you will never know the importance of using money to make money. The consequence of this is a contradictory vicious circle: telling others that money is yours only when you spend it. , But at the same time keep complaining that I don’t have enough money every month.

And only when you save the first pot of gold, you can make your wealth snowball bigger and bigger through financial management; if you earn more, you can fundamentally improve your quality of life.

03     What is the best way to save money?

Many people equate saving money with stinginess, especially the younger generation .They often think that saving money is a very uncool thing.

On the one hand, this is brainwashed by consumerism; on the other hand, it is also a misunderstanding of saving money.

Saving money is by no means being stingy, but choosing the most reasonable way of consumption after a reasonable assessment and planning of one's own consumption capacity.

For example, if you have a monthly income of 3,000, don’t covet 30,000 packages in a short time. It’s not too late to buy when your income increases.

Evaluation and planning must be based on the understanding of one's own consumption ability and consumption level, so this is why we say that tracking expenses is the first step in financial management.

Only by tracking expenses and clearly knowing your own income and expenditure situation, can it be possible to formulate reasonable budgets and goals, and achieve scientific savings and savings.

In summary, saving money does not mean stingy, but a rational way of life. Only when you withdraw from the consumption spree, you will see what you really want in your heart.

Compared with people living on paychecks to paychecks who eat, drink and play every day, we admire those ordinary, self-reliant young people who save themselves a new world.


I wish everyone can live a upgrading life of wealth with a downgrading consumption mentality!

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