The greatest value of money is that it gives you the ability to control your time
A Story That Transcends Time and Space
Before e-commerce, people would most likely do their shopping within a radius of about five kilometers, and few people would travel to another city just to buy something. So our consumption habits were distributed among everyone's five-kilometer radius. Now, with the emergence of e-commerce, time and space have been transcended; it is possible for an entire city to buy products from a single livestream.
This is much like ancient times. Why did coins come into existence? Because grain was difficult to store, and transporting it across time and space was inconvenient. With money, people could overcome these challenges. Later, gold ingots appeared, but gold ingots were inconvenient to transport. Eventually, they evolved into paper money. Paper money could overcome the constraints of time and space. So you can see that the world is gradually moving toward creating content that can transcend time and space. This will certainly be a core area to focus on in the future.
This may be the key point you need to focus on.
Everything humans do is intended to create something better.
Tell lies to people who want to hear lies, and you may get rich.
Tell the truth to people who want to hear the truth, and you can only make a living.
Try to tell the truth to people who want to hear lies, and you may go bankrupt.
Want other people to give you money
Who am I?
What have I done?
What have I accomplished?
What changes will take place in the world next?
What should I do?
My palace of ideas, my system of thought
If you become wealthy
Do not pursue stability, and do not pursue a job either.
You need to pursue opportunities.
The definition of a wealthy person
If you could survive for a year without relying on any work or savings, could you do it?
The only way: investing
Investing is the process of continually converting your money into assets.
Something you must know
Assets: So-called assets are things that can generate positive cash flow; things that can help you make money.
Consumption: Something that does not continuously consume your money is called consumption.
Liabilities: Things that continuously make you spend money are called liabilities.
Anything that cannot make money is garbage.
A house
If a house cannot help you make money right now, it is a liability.
Without taking the appreciation of the house into consideration
Investing in a house is a long-term matter and cannot truly make you wealthy.
To become wealthy, retain as many assets as possible and reduce liabilities.
Five key points
Increase income: A side business
Reduce consumption
Be willing to try and take risks.
Quit your job and start creating.: Working for someone can possibly make you wealthy.
Minimize taxes as much as possible.
Taxes are the only obstacle preventing ordinary people from becoming wealthy.
Earned income: You have it only when you work; you have none when you do not work; the tax rate is high, up to 55%.
Capital gains: Income earned through capital transactions; the tax rate is low.
Cash flow: You can have income without doing anything; the tax rate is low.
The four types of careers in the world
Schools only train two types of people.
Employees: Wage earners
Experts: More capable wage earners in an industry
Entrepreneurs
Investors
Investors with nothing
Investors who borrow money
Savings investors
Smart investors
The “Don’t Bother Me” type: Do what I originally intended to do
Cynical type: They seem to understand everything when talking about it, but do not invest themselves
Gambler type: Wants to try everything
Long-term investor: A standard investor who has investment plans and puts them into practice; millions in assets
Mature investor: An expert in a particular field
Capitalist: You start a company and issue capital; everyone purchases it = invests in you
Compound interest effect
Hypothesis
Assume an ordinary sheet of paper is large enough. Fold it in half, then in half again, and repeat this 64 times; its height could reach 166020696 ten-thousand kilometers
What does this length mean? The distance from Earth to the Moon is only 384,000 kilometers. This is the power of compound-interest thinking
Essence: Doing something a leads to result b; result b, in turn, reinforces a, creating a continuous cycle. Compound-interest thinking places greater emphasis on approaching life, wealth, and knowledge through the lens of compounding
If you continuously accumulate through the compound-interest effect in everything you do, whether it involves connections, wealth, experience, and so on
you will discover how formidable it is
Repeat simple tasks, and do repeated tasks conscientiously: This part is very similar to the ideas above: “The difficult things under heaven must begin with what is easy; the great things under heaven must begin with what is small”
Long-termism
Persistence based on the right choices is what counts as long-termism: Rather than believing that persistence itself is long-termism
Manage your assets and liabilities
Build a financial system
What does it mean to make money?
What does “make” mean?
What is the definition of making money?
Why not just take it?
Why is it called making money?
What is money?
Currency
The state: Banks; the stock market; cryptocurrencies