Six Steps to Achieve Financial Freedom (Part 4)
For small business owner-style freelancers, This should be a promising way out. As for migrant workers, don’t be discouraged, as long as you believe in what the American car king Henry Ford once said: “Whether you believe you can, or you believe you can’t, you are both right.”
Can you live for a year by depositing 1.6 million yuan in the bank? This approach is not fixed either. If someone’s monthly living expenses are 12,000 yuan, the 1.6 million figure is unreliable, so he has to increase the principal deposited. If the bank interest rate changes again, you will have to adjust the amount of money you save. In other words, there are many uncertain factors in the operation of large sums of money, but you must keep pace with the times and respond to sudden changes!
In the face of changing numbers, how quickly can you achieve a profit on your principal to support you? This mainly depends on the level of your basic monthly living expenses, the size of your consumption desire, and the size of your earning ability. Of course, there’s also the question of how quickly you can save money, got it? If you assume that your basic living expenses are 1,000 yuan per month, then congratulations, you will reach financial independence faster.
Having said this, you should understand what financial independence is. It means that the interest generated from the principal you deposit in the bank should be enough to maintain your basic monthly living expenses. Once you reach this level, you can live a very safe and secure life without having to do a job you don’t like, and most importantly — you live a more comfortable life than other people.
During the whole process of saving 1.6 million yuan, some people worked hard to earn and save, and finally one day the deposit reached 1 million. He felt good about himself, so he took out the money and bought a new car for 50 Ten thousand, as a result, the task of financial independence will not be accomplished. He saw that this was not good, so he continued to work hard. Finally, after a little more patience, he was almost ready to deposit 1.6 million yuan. It was time to celebrate, so he took out the money and bought a house. .
This is like the golden rooster he raised was about to grow up and be able to lay golden eggs. He suddenly celebrated by killing the golden rooster and taking out the golden eggs inside and eating it. After eating, not only the golden chicken is gone, but also the golden eggs will no longer be there. It’s that simple.
What benefits does saving help you achieve financial independence?
At this level, you are financially independent. Even if you lose your job, the bank will still pay you interest every year. You don’t have to work hard for money, meet people you don’t like every day, and do what you want every day. Don’t do anything you don’t like to do. Therefore, the bank becomes your asset, albeit a small one.
The principle that money begets money is clear at a glance. This is why you choose to save money. This may not be the fastest. If you put your money elsewhere to make profits, the interest rate may be more than 0.03, but please remember that this is the safest, most practical, and most suitable for everyone. For most people, safety comes first.
The skills, abilities, and risks required to invest money in the stock market, funds, real estate, companies, etc. are much higher than those in banks. Ultimately, the risk is because you don’t understand, or you don’t understand in depth and in detail. , your ignorance is the biggest risk.
This is like driving. People say that driving can cause accidents and is unsafe, but people still flock to it. But you have to know that the biggest risk is that when you are driving, your hands leave the steering wheel and you lose control of the car. . Even if no one educates you, something as simple as crossing the street can be risky.
The same is true in financial management. Compared with other risks, savings does not require you to have exquisite financial management skills or a high IQ. You only need to do the same thing: persist. That’s it. If there is no risk, your choice of bank is correct and safe. If you keep 1.6 million yuan in the bank and do not use it, it will generate 48,000 yuan in interest every year to maintain your basic life.
Therefore, I suggest: after you achieve financial independence, you can use the extra money you earn to invest elsewhere on the basis of having a bank deposit of 1.6 million yuan. Because the profits are high, the risks are also high. Even if you lose all your investments other than 1.6 million yuan, don’t be afraid, because there is 1.6 million yuan sitting motionless in the bank, and it can still make waves — to a fixed amount every year. Days will help you give birth to 48,000, enough to cope with sudden changes. Of course, if you make enough money in other areas, it can also help you achieve financial freedom quickly.
This is called “Qian Qian all day long” in “Book of Changes·Qian Gua”. In other words, there are many uncertain factors preventing you from achieving financial independence. You must not forget your own mission. Faced with changes in consumption amounts and changes in bank interest rates, you must make correct and rapid responses. , there should be a vision of a better life in front of you to guide you.
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