Even if you have a golden mountain or silver mountain, and
there is no new source of wealth, wealth will be expended one fine day. As the
saying goes: It is better to teach people how to fish than to give people
fishes. Most people work hard for
financial independence, but in the end they find that they have been slogging
for most of their lives but they are still running in cycles. To achieve financial
independence, we must remember a few principles:
Income structure
determines rich or poor
Most people earn income through 8 hours of work, so the
essence of earning income is selling time.
Most people are thinking about how to increase the duration
of paid work or increase the per hour rate. Most of their income comes from the
salary they get from work every day.
No matter how much time a person can work in a day, it is
also limited. Therefore, the way to increase income mainly depends on the per
hour rate and whether it can be sold repeatedly. Most people will strive to
become managers. This is because managers have greater responsibility and the
greater the responsibility, the higher the return. So you can improve your
leadership ability and make yourself a manager, so that the per hour rate will
increase.
So, how can time be sold multiple times? For example, a
well-known company gave a live broadcast class on career planning. The
preliminary preparations plus the live broadcast time are about 40 hours, but
there are more than 300 people watching the same live broadcast concurrently.
If a person wants to sell his share of time many times, he
must have the ability to build products. You must be able to convert your
knowledge, skills, and experience into products, and sell products to more
people, so that you can sell them many times at once.
The importance of
continuous income
Now there is an option of 10 million dollars and an option
that can generate 10,000 dollars every day, which one would you choose? This is
the same reason that teaching people to fish is better than giving people
fishes. Suddenly owning a huge amount of wealth does give people a sense of
satisfaction for a while, but no matter how much money you have and you don’t
know how to use money to generate more money, it will be depleted eventually.
The definition of being rich is: when you do not go to work,
or lose the job at hand, you can still live a life without worry for yourself
and your family. This is because when the rich are not working, they will rely
on stocks, funds, bonds, and even rents to provide them with income. This is
continuous income.
During good times, people must think about how sustained
income can be created. For example,
investment income, copyright incomes are all types of continuous income.
However, we know that any unsustainable income is not worthy of envy, and it is
even less worthwhile to work overtime and pursue it at the cost of health. In
addition, the interest on savings alone is not enough to support your
retirement.
Here is a small story for everyone. There used to be two mountains.
One mountain lived Alan, and the other mountain lived Ben. There is no water on
the mountain. Every day Alan and Ben have to go down to the mountain to fetch
water, and the two quickly became good friends. One day, when Ben went to pick
up water, he found that Alan didn't show up. He thought, maybe Alan was sick.
The next day, Ben went to fetch water again, but Alan still didn't show up, Ben
became worried and decided to visit Alan. After going up the mountain, he found
that Alan was doing Tai Chi under the big tree. Ben was surprised and asked:
"Alan, why didn't you pick water and still have water to drink?" Alan
replied: "For the past 3 years, I have used my free time to dig well after picking water every day. Now I have dug a well and the water from the
well is pouring continuously. From now on, I don’t have to go down the mountain
to carry water anymore! I can also save a lot of time and do what I like.”
Therefore, Alan no longer has to carry water. Ben still can't rest.
Choice is more important than effort.
Read also:
The eight golden periods of financial management in life, have you missed them?
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