Six Steps to Achieve Financial Freedom (Part 2)
When dealing with the issue of money, I also thought of the “Book of Changes Qian Gua” left by my ancestors, so I thought of the law of “development of the peoples and things” Referred in it, which have a total of six steps:
1. Do not use Hidden Dragon (for the learning stage and latent period);
2. Seeing a dragon in the field (first showing off one’s talents, first seeing the world);
3. Work hard all day long (hard work and practical work);
4. Or leap into the abyss (at the juncture of advance and retreat, in the face of opportunity);
5. The flying dragon is in the sky (ideals come true, achievements are brilliant);
6. A prosperous dragon has regrets (it flourishes but then declines, full of losses and losses).
The above can correspond to my financial management tools
Wisdom, courage, fairness, and moderation are all our virtues. Today I will teach you a set of methods. You must not take chances. We should always warn ourselves to be extra cautious and cultivate virtue.
Because if you don’t cultivate your virtues, you won’t be able to bear the responsibilities you bear, let alone the money, status, and power you possess. Therefore, in this article, the virtues I refer to are mainly the most basic and traditional Chinese people’s diligence, thrift and struggle. Only in this way can you manage your money.
No longer to whet everyone’s appetite, let’s begin the main text. The following is only theoretical. Although I am using it myself and have reached the second step through my own practice, in detail, progressive people still need to practice it according to their own actual situation. I guarantee that you can OK.
Step One: Financial Security (Do Not Use Qianlong Stage)
What is financial security?
Financial security means that you should have 3–6 months of basic living expenses. Of course, you should deposit this money in a bank just to be on the safe side. Through the previous analysis, I assume that your basic living expenses per month are 4,000 yuan, then the living expenses for 3 months are 12,000 yuan, and the living expenses for 6 months are 24,000 yuan. In other words, you must first have 12,000 to 24,000 yuan. The deposit of RMB 10,000 is deposited in your bank account. It is best to make this deposit on a regular basis. Never touch it, ever.
Why save money?
Because when you have 3–6 months of basic living expenses in the bank, you will feel a small sense of security in your heart. You can at least do this: even if you lose your job one day, or something big changes happen one day, you can still survive safely for 3–6 months. During this period, you don’t have to worry about money every day. , After eating one meal but not another, living in tension and fear.
Although 3–6 months of basic living expenses is not much, it is only the basic prerequisite for finally gaining financial freedom. It is only the first step in a long journey of thousands of miles. Only when you have this deposit can you be considered to have reached the minimum guarantee, because You have a buffer period of 3–6 months, and you can slowly and calmly make your next plan.
I have personally survived several job losses this way. Friends, if you have worked for 2, 5, or 10 years, you should have 3–6 months of savings. No matter how long you have worked, if you have no habit of saving money, you should never talk about financial management.
When you complete the fixed deposit task of 3–6 months of living expenses, you have achieved the first step, financial security.
Please follow me and shout confidently: “Even if I lose my job immediately, I’m not afraid!”
Step Two: Financial Security (See the Dragon in the Field Stage)
What is financial security?
Assuming that your basic living expenses per month are RMB 4,000, financial security means that you need to have 12–24 months of basic living expenses in the bank, which is RMB 48,000–96,000.
Just keep this deposit in the bank, don’t use it, it will give you a greater sense of security that will last far longer than the financial security of the first step. In any critical situation, you can survive safely and stably for at least 12–24 months. You should know: If you lose your job or lose the ability to work… you can choose what you want to do in the future, what you like to do, and what suits you during this period of 12–24 months You can have enough time to treat it as a buffer period so that you won’t get confused or lose your position.
Speaking of which, many people don’t even have basic living expenses for 12–24 months, so how can they talk about financial management? If you don’t even have the most basic safety protection, how can you talk about financial management? If you don’t take care of your money, money won’t take care of you.
As long as you are willing to save money, at least 10% of your monthly income, it will not take long for you to reach the first step of financial security; and then continue to work hard, I believe that soon, you will be able to reach the second step Financial security.
Financial masters told me that they all have the habit and obligation to save money. They can save at least 50% of their income every month. They can quickly bypass the first step and directly reach the second step, achieving financial success. Safety.
Damn it, if I bite the bullet and save 90% or 100% of my income, I can still be financially free after saving for a few years. Could it be that if you just save money, you won’t be able to survive?
If you want a first part you can visit my profile or click here
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