The eight golden periods of financial management in life, have you missed them?

In this new era of rapid economic development, everyone will not be afraid to talk about money. In the past, talking about money hurt feelings, but now you need to have money to talk about feelings? Therefore, everyone wants to make more money. There are definitely not a few people who are desperate to make money, and there are very few who are willing to manage money. However, when you want to manage your finances, you find that you have missed the best time. Okay, today, let us talk about the ten major financial opportunities in life.

01

The first is the budding period. It is the period before our secondary school. During this time, our financial resources are coming from our family members or relatives. This money is basically negligible, and it won't be of much use even if it is saved. So the suggestion is that you invest in your hobbies, what you like to do, and what you like to invest in. To put it bluntly, just do what you want.

02

The second is the ignorance period that is, after the secondary school period and entered the college period. For this period of time, we are actually ignorant of financial semi-liberalization. Part of the source of income is still obtained from home, or from a part-time job outside. The financial resources during this period can do something, and here I am here to suggest that you make a life plan for yourself, and then use the money to find a training class that you like and be interested in, so as to enrich yourself so that you can have a good skill when you enter and leave the society.

03

The third is the shell-breaking period. At this time you have entered the society, bid farewell to the school days, become a member of society, and also a member of the workplace. You have survived the low-paid internship period and passed the probation to finally become a full-time employee. However, there is still not much money. At this stage, my advice to you is to learn how to plan your financial structure, you must develop a good financial management habit, and persevere, don't be a Moonlight clan. When you enter the workplace, you are easily influenced by the outside world, and you go back to blindly pursuing ridiculous things. It is inevitable that a person wandering outside will encounter tricky things and the family cannot help in time, so developing a good financial management habit can benefit you throughout your life.

04

The fourth is the development period, which refers to the period from the beginning of work to marriage. During this time, we have gained a certain amount of savings and self-confidence. Suggestion is to choose investment and financial management wisely.

Insurance: accident insurance, medical insurance, etc.

Investment categories: P2P financial management platforms, stocks, funds, etc.

05

The fifth is the maturity period, which is the period during which you are married. At this time, you will consider buying a house, buying a car, starting a family, and many other things that will generate economic consumption. During this period, suggestion is to leverage on the loan amount, which is reasonable. The amount of loan is also a financial management tool. It is better to save some spare money to invest in financial management than to save money to buy a house in full, so that money can make money.

06

The sixth is the stable period. At this time, the family is almost stable. At this time, your family has a new member, a child, and the cost of raising a baby is not small. At this time, we recommend  that you avoid the stock market. For a high-risk investment, you can choose less risky financial management methods to ensure that children can grow up healthily without the pressure of family economic problems.

07

The seventh is the stressful period. During this period, it can be said that there are old and young children, the tuition and living expenses of children, the living expenses of the elderly, medical expenses and so on! During this period, suggestion is to choose a stable financial management method..

08

The eighth is the relief period. At this time, the child no longer needs you to raise, and the money on hand is more generous, just do within your means.

Read also:

Thoughts after 30 years old

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The fundamental reason why most people can’t save money is not because they spend too much, but because they lack a sense of crisis

01

As life is unpredictable, we are all worried.

I remember the fables of squirrel and crow when I was young. Winter is coming, squirrels have been actively hoarding pine cones looking for food, but crows are lazy to go and find food. When winter really comes, squirrels have food for the whole winter, but the crow has nothing, thus it can’t withstand the cold winter.

In fact, we have long known the importance of preparing in advance, but I don’t think most people think that they will become that miserable crow.

And many people cannot save money not only because they earn less and spend more, these are just behaviors, but the way of thinking is the most important.

Because they can't think of the consequences of not saving money, life has not yet staged this scene for them. Maybe he won't be a crow, but he may be a frog slowly cooking in warm water, bewildered by the comfort of the moment, forgetting the danger that might come.

02

There was a girl on the Internet who shared her own story: Worked overseas for more than ten years, single, is now a glamorous office lady in the workplace, did not buy a house but rented a house for 7,000 per month, flown around the world , live in first-class star-rated hotels. This girl plans to take the initiative to resign and take a two-year break before 2020.

She earns a lot. After all, not many people can afford a monthly rental cost of 7,000, but the girl never expected that after resigning, she would encounter a rare epidemic, and due to her nature of work and not having enough savings, she immediately faced a cruel financial crisis.

Almost all savings have been spent in the past two years. She sold all the jewelry bags and was considering whether to sell the high-end car that was still repaying the loan.  The glorious and glamorous experience in the past is worthless at this moment.

It’s not impossible to start from scratch, but it’s difficult to change from extravagance to frugality. She has to re-set her mentality to set off again.

At the beginning of covid19, we were a little frightened.

But only we ourselves know that the reserve funds we have to save are far from enough in order to fully meet our expenditures. 

Therefore, in life, there must always be a bit of anticipation of the future and a sense of crisis to react to the unforeseen.

03

Young people nowadays are easy to fall into overwhelming consumerism. Of course, it is understandable to spend their own money to live a better life, but it is also terrifying to pay too much attention to the immediate satisfaction of the present and not to make long-term plans for the future.

Moreover, the processing of consumer loans and credit cards makes early consumption very easy. If you overdraw tomorrow's money, will you be able to earn it back in the future? Maybe not.

Before buying anything that is not necessary, you might as well ask yourself a few questions:

1. If there is an emergency, are you able to fork out the money?

2. If you suddenly lose your job and cannot find a suitable job for three or four months, can these things be sold for money? Are there any savings to support this tough period?

3. If you or your family members suddenly become ill, can the treatment cost be covered?

If the three answers are no, then every decision not to consume is to delay gratification.

The sense of crisis is that you have to know what you want in the future, or vice versa, know what you don’t want in the future, so you have to do something now.

When there is no good way, stubbornly saving money is the best way. It feels easiest to spend when you save 300 or 500. A new mobile phone or tablet, and a slightly more expensive luxury bag can empty the bank account, but there is a sense of frustration that it feels too little to be saved or there is no need to save it.

Don't give up at this stage, grit your teeth and stick to it. When the deposit reaches 10,000, many people will start to feel a little bit reluctant to spend. For the Moonlight Clan, it is a sense of accomplishment.

Later, I gradually got used to the feeling of saving money, and I saved up to 20,000 and more. Seeing the base making money.

When it becomes more and more, it becomes easier to save money. Because your mentality has changed, your outlook on material desire has changed, and your outlook on consumption has changed.

Read also:

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

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

Thoughts after 30 years old

01

Last month, due to the company’s manpower reshuffle, I was transferred to a new department. I will have lunch with my colleagues in the department occasionally. They paid about 5 bucks for lunch every day. What surprised me was that even though they were saving so painstakingly every day, they did not manage to save much at the end of the month. Therefore, after the age of 30, the ability to make money is more important than saving money.

How to improve earning power?

02

Expand sources of income

Nowadays, a single income has been unable to meet our living needs. Even though we are saving money, we need to spend to solve the economic difficulties of the family.

Therefore, to expand the source of income, even if the income is not much. For example, I started blogging.

Reasonably control expenses

We all know that if we don't make conscious savings, no matter how much money we make, we can't save it. If we want to have a better life in the future, we have to start saving now. Controlling your own expenses and avoiding unnecessary expenses is the real thing.

Of course, many times, you may consume unconsciously, so you need to form a habit of spending money. For example, when you first buy something, you can make a shopping list.  When you go shopping, you will find that in addition to it being highly efficient and time-saving, sometimes you may not even want to buy the items on the list. In fact, this is also a way to control your expenses.

Preparing for the future

Only if you have a plan in your life can you lead a calm and perfect life, plan for your future, and leave enough money to secure your future life.

For example, make a house purchase plan. According to this goal, you will find that the motivation to save money will be more motivated than just saving money, and in the process, the earning power will gradually increase, because when one has a goal, one will hope to complete the goal early.

Improve professional ability

The most important thing that affects your ability to make money is professional ability. No matter which profession you are in, you should have professional ability that you can tap on.

Just as chefs must continuously improve their cooking skills, designers must continue to learn the ability to appreciate. Therefore, if you want to improve your earning ability, you need to continuously improve your professional ability.

After the age of 30, you will find yourself getting more and more stressed. If you want to get rid of the pressure, you need to do the above 4 points to speed up the realization of financial freedom and reach the pinnacle of life.

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

01

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.

02

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.

03

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.

04

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

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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?

Listen:

The Truth about Shopping

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.

Part 1: https://routetofi.blogspot.com/2021/10/warren-buffetts-10-classic-ideas.html

Listen: Podcast

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: https://routetofi.blogspot.com/2021/10/warren-buffetts-time-management-free-er.html

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